Finally, union budget 2014 has been presented by the honorable Finance Minister Mr. Arun Jaitley. He has announced a slew of measures to accelerate growth, contain CAD, Fiscal deficit & Inflation. Reforms have been announced in financial sector, banking, education, power and many more areas. Like Rail budget, it’s difficult to present to you the entire budget speech. Hence, we have gathered the most important points of this budget that impact your lives.
- Income tax exemption limit has been raised from Rs. 2 lakh to Rs. 2.5 lakh. Similarly, Rs. 50,000 hike has been proposed for section 80C and section 24 (housing loan) deduction limits.
- Income tax commission will be setup to look after settlement of various tax related disputes.
- Capital gains on sale of mutual fund units (other than equity funds) to be increased to 20% from the existing 10%. Also, the period of holding has been increased from 12 months to 36 months.
- DTC (Direct tax code) will be reviewed in the present shape. Comments will be taken from various stake holders and decision will be taken on it.
- Additional tax incentive on housing loans will be extended to encourage young people to own houses.
- Investment limit in PPF increased from Rs. 1 lakh to Rs. 1.5 lakh p.a.
- Single demat account would be enough for all financial transactions from here on.
- Small savings schemes will be revitalized. KVP (Kivan Vikas Patra) will be re-introduced.
- Uniform KYC norms will be introduced across the entire financial sector
- EPFO will be launching a unified account scheme to assist PF account portability.
- During the budget 2014 speech, FM re-iterated commitment to provide 24*7 power to all households. Two states AP and Rajasthan have already been selected for pilot project.
- Total sanitation for every household under ‘Swatchh Bharat Abhiyan’.
- Aim to provide Safe drinking water to all households in the next 3 years.
- Sewerage management, use of recycled water for growing organic fruits and vegetables, solid waste management and digital connectivity to be encouraged.
Modernization and Safety:
- Rs. 150 crore has been allotted towards safety of women on roads.
- Focus on developing 100 smart cities in the country.
- National highway construction of 8500 km is targeted for better road connectivity.
What is Expensive and What is Cheaper?
- Cigarettes, Pan Masala, Cold Drinks, and Imported Cosmetics will be expensive.
- Branded Clothes, Soaps, Footwear, Packaged Food, Diamonds, Smart Cards, Sports Equipment to be cheaper.
- Govt. will ease and simplify norms to facilitate education loans for higher studies.
What do you think of this Union Budget 2014? Please leave your comments/suggestions.