Budget 2014 Highlights
- There have been no changes in tax rate. Tax exemption limit has been simply raised from Rs.2 Lakhs to Rs.2.5 Lakhs. So those earning 25000 to 30000 per month need to pay taxes if they do some savings too.
- Savings / investment limit under Section 80C has been raised from Rs 1 lakh to Rs 1.5 lakhs which is a good news for those citizens who believe in savings.
- PPF limit has been raised to Rs 1.5 lakh per year. Another good news for the Taxpayers is that Housing Loan rebate has been raised from 1.5 lakhs to 2 lakhs.
- The Senior citizens has something theto cherish about. Saving exemption limit for them has been raised to Rs 3 lakh per annum.
House wives, & General Public
- For Housewives, there is some good news and some bad. Whereas costs of Color TVs / LED TVs, cotton clothes, leggings, Oil & Oil products, shoes and soaps have been reduced but government has increased the duties on Cosmetics.
- Costs of bottled / packaged consumer goods would go down as the government has decided to reduce duties on food processing. Duties on Medicines & all solar powered products have also been reduced.
- The FM has assured that steps would be taken to boost supply of vegetables and reduce the juicy margins. Hoarding of essential commodities would be made a non-bailable offence.
- A Price Stabilization Fund of Rs.500 crores has been setup to fight inflation.
- Cigarettes Cigar, Pan Masala, Gutka, Tobacco and Tobacco products would be costlier. Bottled Juice and aerated water products with added sugar ie. cold drinks (such as Pepsi, Coke etc.) to be costlier.
- Travelling in Radio Taxi & availing Catering facility would now cost you more.
Youths and Students
- Youths can cheer as the costs of Mobile, Laptops and Computers would go down. However, youths who like show-off their branded and designer clothes in their friend circle would have be shelve out more money for the Branded clothes with increase in duties.
- There is further good news for students as the government has decided to setup four more AIIMS and 5 more IITs and IIMs. This would increase the overall seats of Engineering, Medical & Management aspirants in the IITs & AIIMs and going to create more job opportunities for them.
- Saluting the Real Heroes of the Nation, the government has approved the ‘One Rank One Pension’ policy for defence personnel which would benefit over 25 lakhs retired military personnel.
- 49 % FDI has been allowed in the Defence Sector to boost production of defense equipments locally.
- The FM has tried to outline a road-map for modernization of agriculture techniques in India with a budgetary allocation of Rs 100 crore for setting up an “Agri-Tech Infrastructure Fund”
- A 1000 crore scheme “Pradhan Mantri Krishi Sinchayee Yojana” has been initiated to provide assured irrigation.
- Several Agriculture Research Centre and 100 mobile laboratories are to be setup and Rs.100 earmarked for Soil Health Card Scheme.
- Rs.1,000 crore for rail connectivity, Rs.2,000 crore for road connectivity and Rs.100 crore to promote ‘Organic Farming’ in North-East.
- A 24×7 news channel called ‘Arun Prabha’, will be started in the northeast region.
- The Holy river seems to be the biggest gainer with the FM allocating Rs 2037 crore to clean up Ganga under the ‘Namami Ganga’ Project and a separate NRI fund has been setup to receive donations for conservation of ganga.
- Rs 100 crore has also been set aside for development and beautification of the ghats at Kedarnath, Haridwar, Kanpur, Varanasi, Allahabad, Patna and Delhi.