Skip to main content

Indian budget 2014-15 highlights : no visible benefit for inflation, household expenses except slightly lower tax.


The hullabaloo about the much-awaited Union Budget 2014-15 is over! Though the FM tried to give relief to the individual taxpayers in what his party described a ''growth-oriented budget'', he however stopped short of addressing the concerns regarding other sectors, which were eagerly expecting some relief.

"I propose not to make any changes in the tax rate. However, with the view to provide relief to small and marginal and senior citizen, I propose to increase the personal income tax exemption limit by Rs 50,000 from Rs 2 lakh to Rs 2.50 lakh in case of all individual tax payer who are below the ago of 60 years," the FM said while presenting budget for 2014-15 in Parliament.

The following is the list of most important announcements made by the Finance Minister.

Salaried Class

Raising Income tax exemption limit

Though the slab of tax free income has not moved up in line with real inflation, FM's announcement on taxation has brought some sort of relief to the individual tax payers as it will increase the purchasing power of individuals and stimulate demand. 

The General Budget 2014-15 presented by the Union Finance Minister has raised the personal income-tax exemption limit by Rs 50,000/- that is, from Rs 2 lakh to Rs 2.5 lakh in the case of individual taxpayers, below the age of 60 years.

Exemption limit raised from Rs 2.5 lakh to Rs 3 lakh in the case of senior citizens. However there is no change in the rate of surcharge either for the corporates or the individuals, HUFs, firms etc. 

The only dampener here is that the FM has nothing for women taxpayers in his kitty. 

Raising tax exemption under 80C

Investment limit under Section 80C of the Income-Tax Act has also been raised from Rs 1 lakh to Rs 1.5 lakh which will encourage savings to some extent.

Public Provident Fund (PPF)

In further relief to the depositors, the Finance Minister has raised Public Provident Fund (PPF) deposit limit to Rs 1.5 lakh per annum. This was earlier pegged at Rs 1 lakh.

Hiking the cap on interest on home loan

The realty sector, which has been under pressure for quite some time, has now been given a breather by the Finance Minister. To incentivise investments into the sector, the deduction limit on account of interest on loan in respect of self occupied house property has been raised from Rs 1.5 lakh to Rs 2 lakh. 

Small entrepreneurs

To encourage small entrepreneurs, an Investment allowance at the rate of 15 percent to a manufacturing company that invests more than Rs 25 crore in any year in new plant and machinery has been announced.

The benefit will be available for three years i.e. for investments upto 31.03.2017. Investment allowance to manufacturing company investing more than Rs.100 crore announced last year will continue till 31.03.2015.

Women and senior citizens

It was widely expected that Arun Jaitley will give more relief to women tax payers. On the contrary, the Finance Minister's budget announcement had nothing specific for women. Earlier, women earning upto Rs 2 lakhs were exempted from paying tax. There was widespread expectation that the limit would be hiked by a minimum of Rs 50,000 over and above the general category exemption limit. The individual tax exemption limit of Rs 2.5 lakh has no gender segregation. 

However, senior citizens will have a sigh of relief. As of now, senior citizens earning upto Rs 2,50,000 did not come under the tax bracket. Income tax exemption limit for senior citizen has now been raised to Rs 3 lakh.

Housewives

Another very important section that was eagerly expecting some sops from the Finance Minister was housewives. Arun Jaitley's major announcements on dearer and cheaper is bound to have a direct impact on the Indian housewives that have been toiling to their kitchen budget in control.

For long, housewives have been economising on their kitchen expenses, owing to exorbitant prices of essential items, but the NDA government's announcement on packaged/processed food products and edible oil will surely give some respite to them.

http://zeenews.india.com/business/indian-budget-2014/union-budget-2014-15-how-it-will-affect-you_103645.html

Comments

Popular posts from this blog

Future of oil is bleak. By 2030, 95% of people may not own private cars which would wipe off the automobile industry

A futurist and clean energy expert, Toni Seba, has predicted that electric vehicles would destroy the global oil industry after a decade. By 2030, 95% of people won't own private cars which would wipe off the automobile industry, he says.

Boeing and JetBlue Airways have announced they would begin selling a hybrid-electric commuter aircraft by 2022. Planned by start-up Zunum Aero, the small plane would seat up to 12 passengers and reduce travel time and cost of trips under 1,600 km.

Ref http://auto.economictimes.indiatimes.com/amp/news/oil-and-lubes/the-future-of-oil-is-almost-here-and-it-doesnt-look-very-pretty/60972841

Can Herbalife 'Afresh' cause insomnia(sleeplessness) and heart problems?

Here is another "great" product from Herbalife. Marketed as an ENERGY drink mix. Few people know it contains Gurana seeds which have no active compound giving artificial energy other than caffeine. Afresh also contains additional caffeine

Ingredients of Herbalife Afresh Energy Drink Mix:
Maltodextrin, Orange Pekoe Extract, Guarana Seed Extract, Acidity Regulator - 330 and Caffeine Powder.

http://mall.coimbatore.com/bnh/herbalife/afresh-energy-drink-mix.htm

http://products.herbalife.co.in/energy-and-fitness/afresh-energy-drink

Side effect include insomnia, sleeplessness and heart problems, It is especially harmful for people with High blood pressure.

http://www.medicinenet.com/caffeine_tablets-oral/article.htm

PPF interest rate cut to 7.9% but are other investment options better? Here's a comparison

The Public Provident Fund (PPF) will now offer 7.9% but experts say it is still a good option for investors. Given that consumer inflation is down to 3.65%, the real rate of return of the PPF is a healthy 4.25%. 

"This is quite impressive for an option that offers assured returns," says Amol Joshi, Founder, PlanRupee Investment Service. "Investors should continue to take advantage of this long-term tax-free product," he adds. 

Even if you compare the PPF rate with the 10-year government bond yield, the scheme is attractive. "The 10-year bond yield is a better benchmark for PPF than consumer inflation," says Manoj Nagpal, CEO, Outlook Asia Capital
Currently, the 10-year bond yield is around 6.8% and the PPF at 7.9% makes it for a premium of 110 basis points. "Historically, the average premium has been around 75 bps. So, the PPF investor is today earning a higher real return," says Nagpal. Even so, some investors may be feeling disappointed by the cu…