sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Budget Extravaganza »
 How Union Budget 2018 impacts individual taxpayers
  How Budget 2018 will be different due to GST
 This is how Budget 2018 announcements may help you save tax
 Here's why the government advanced the Budget date
 Will Budget 2018 Reduce Your Income Tax? 10 Expectations
 How Budget 2018 will be different due to GST
 Will Budget 2018 cut tax on switch from dividend to growth option in mutual funds?
 Startup eco-system looks forward to the budget for addressing tax dilemma
 High time to prioritise non-tax revenue in the Budget
 Govt may abolish dividend distribution tax in budget
 Budget making in the GST era: paradigm shift

Budget below market expectations, but good for economy from long-term perspective
September, 12th 2014

The Budget for 2014-15 took a practical approach to the issues plaguing the country, with a focus on fiscal consolidation, social sector, and boosting the infrastructure sector, among other things.

There have not been any expected 'big bang' measures announced, but have taken steps which may help lay a strong foundation for a long-term growth. The infrastructure & power sectors have been core areas of focus, with several incentives given to assist in recovering the pace of growth.

We believe that the key to growth lies in a bottom up approach, and we believe that the budgetary measures directs towards the same. Also, by increasing customs duty for flat rolled steel will give impetus to domestic companies.

There is good news for retail investors in terms of tax breaks, with the base for personal income tax increased from Rs. 2 lakh to Rs. 2.5 lakh for male and female assessee and for senior citizens the base has been enhanced to Rs. 3 lakh from the present Rs. 2.5 lakh.

The exemption under Section 80C has been increased to Rs. 1.5 lakh compared to Rs 1 lakh earlier. Saving instruments such as housing loan repayment (principal), five-year and above tenure fixed deposits, provident funds (PFs) and life insurance policy premiums are some investment vehicles that qualify for tax exemption under Section 80C of the Income Tax Act.

However, the tax rates remain the same, and we believe that the additional Rs. 1 lakh that the retail investor saves on tax will be a big boost for personal income levels, and in turn the liquidity in the economy. The contribution to PPF has been increased to Rs. 1.5 lakh from current Rs 1 lakh.

Other tax benefits such as increase in permissible deductions for housing loan interest from Rs. 1.5 lakh to Rs. 2 lakh have also been announced. The finance minister has also announced a single KYC policy for all investments across the board, which is likely to improve the ease of investing in various asset classes.

One's demat account will also become unified across various investment - e.g. stocks, mutual funds, bonds, insurance, etc. The finance minister also announced that a special small saving scheme will be introduced for the education of girl child.

Some imported electronic goods might become more expensive with the government introducing a cess on these to boost domestic production, but in turn domestic TV's etc. are set to become cheaper due to SOPs given out.

Another significant announcement is that the PF body will be making the accounts unified, simplifying the procedure for the retail investor.

However, there is a significant negative for retail investors, in that debt funds which were taxed at a long term capital gains of 10% after a holding period of 1 year, have come under the finance ministry scanner, and in an effort to equate the debt funds with bank deposits, the finance minister has increased the long term capital gain on debt funds to 20%, and made the minimum holding period as 36 months.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions