No Change in Direct Tax Structure – IT Exemption Limit Raised by Rs 50k

Sarkaritel
By Sarkaritel July 10, 2014 14:20

No Change in Direct Tax Structure – IT Exemption Limit Raised by Rs 50k


Exemption Limit for Sr Citizens Up Now to Rs 3 lakh from Rs 2 lakh

Total Revenue Loss from exemption in taxes Rs 22,000 crore

No Change in Surcharge Rates – Some Excist Duty cuts and Some Hikes – No Retro Taxation and existing retro taxes to be scrutinised

LED TV below 19 inches to cost less – Cigarettes and Colas and PanMasalas cost more

GOVERNMENT TARGET FISCAL DEFICIT OF 4.1% FOR 2014-15.

GOVERNMENT TO PROMOTE FDI SELECTIVELY IN SECTORS.

RS. 150 CRORES FOR INCREASING SAFETY OF WOMEN IN LARGE CITIES.

SUSTAINABLE GROWTH OF 4% IN AGRICULTURE TO BE ACHIEVED.

RS.500 CRORE “PRICE STABILIZATION FUNDS” FOR MITIGATING THE RISK OF PRICE VOLATILITY IN AGRICULTURE PRODUCE.

DEVELOPMENT OF INDUSTRIAL CORRIDORS WITH EMPHASIS ON SMART CITIES

By TN Ashok      / Economic Affairs Editor

10budget_2014-15New Delhi, July 10 : – Finance Minister Arun Jaitley today said the Indian economy will have to maneuver its way through a sluggish global recovery,  thus government was offering  no major concessions in direct or indirect taxes  except to hike personal IT exemption limit by just Rs 50,000 and avoided any change in Direct Tax rates or surcharge rates while pledging to rein fiscal deficit at 3% by FY 17 and kicking growth to 8% by the same period.

Presenting the Union Budget for 2014-15 to parliament today, Jaitley amply reflected  the Prime Minister Narendra Modi’s mindset to revive economic and industrial growth from it stagnation earlier in the UPA regime by announcing decisions that would attract foreign investments as also incentivise domestic industry to kick start the manufacturing process.

Accordingly Jaitley raised FDI limits in the insurance and defence sector to a whopping 49% with full indian management control. FDI was also being invited for developing smart cities some of them along the dedicated industrial corridors. The Finance Minister said that the Government would like to introduce Goods and  Services Tax (GST) to streamline the tax administration, avoid harassment of business and ensure higher revenue collection.

The Government is committed to provide stable and predictable taxation regime that will be investor friendly and spur growth. Jaitley said that the Government will constitute an Expenditure anagement Commission to look into every aspect of expenditure reform. The Government also intends to overhaul the subsidy regime while providing full protection to the marginalized.

The Finance Miniser said the Indian Government will promote FDI selectively in sectors. FDI  in Defence and Insurance sector is being raised to 49 per cent with full Indian management  control. FDI is also being encouraged in the development of `Smart Cities’.

The Finance Minister said that the Government intends to usher in a policy regime that would  bring the desired growth, lower inflation, sustained level of external sector balance and prudent policy stance. The Finance Minister pointed out that the present economic  situation presents a challenge of slow growth in manufacturing, in infrastructure and also the need to introduce fiscal prudence.

The tax to GDP ratio must be improved and non-tax revenues increased. He has set a target of fiscal deficit of 3.6 per cent for 2015-16 and 3 per cent for 2016-17.

To infuse Rs. 2,40,000 crore in the Indian Banking system, citizens of India will be allowed direct share holding in these banks. The Government will also provide tax incentives for Real Estate Investment Trusts. A similar incentive will also be announced for Infrastructure Investment Trusts.

In its concern for women, the Government will pilot test a scheme on `Safety for Women on Public Transport’ at a cost of Rs. 50 crore. Additionally, Rs. 150 crore will be spent by Ministry of Home to increase safety of women in large cities. It will also set up Crisis Management Centre in all districts of NCT of Delhi. The Government will also launch the Beti Bachao, Beti Padhao Yojana for which a sum of Rs. 100 crore will be set aside.

In an attempt to provide Health for All, the Government will introduce two key initiatives i.e. the Free Drug Service and Free Diagnosis Service which would be taken up on priority. The Government is to set up two National Institutes for Ageing in New Delhi and Chennai. It is also planned to set up AIIMS like institutes in Andhra Pradesh, West Bengal, Maharashtra and Uttar Pradesh.

To bridge the digital divide, a pan India programme –`Digital India’, that will provide broadband connectivity and other IT facilities at village level, is proposed to be launched. A National Rural Internet and Technology Mission for services in villages and schools, training in IT skills and E-Kranti for government service delivery and governance scheme is also proposed at a cost of Rs. 500 crore.

The government has set a target of Rs. 8 lakh crore for agriculture credit during 2014-15. The Centre will continue the Interest Subvention Scheme and raise corpus of Rural Infrastructure Development Fund to Rs. 25,000 crores. The Warehouse Infrastructure Fund will get Rs. 5,000 crore this year. The Government also proposes to set up Long Term Rural Credit Fund in NABARD for the purpose of providing refinance support to Cooperative Banks and Regional Rural Banks with an initial corpus of Rs. 5,000 crore.

To give necessary impetus to the manufacturing sector, the eBiz platform aims to create a business and investor friendly ecosystem in India by making all business and investment related clearances and compliances available on a 24×7 single portal.

A National Industrial Corridor Authority, with its headquarters in Pune, is being set up to coordinate the development of the industrial corridors.

An Export Promotion Mission will be set up to bring all stakeholders under one umbrella. The Government is also committed to revive the Special Economic Zones and make them effective.

The Apprenticeship Act will be suitably amended to make it more responsive to industry and youth. With a need to examine the financial architecture of SMEs, it is proposed to appoint a Committee of Finance Ministry, MSME and RBI to give concrete suggestions.

`3P India’, an Institution to provide support to mainstreaming PPPs will be set up to give necessary thrust to infrastructure. Also, 16 new port projects are proposed to be awarded this year with a focus on port connectivity for which Rs.11, 635 crore has been allocated. To promote inland waterways, `Jal Marg Vikas’ a project on river Ganga, between Allahabad and Haldia, will be developed.

Airports Authority of India will support Airport modernization projects in Tier I and Tier II cities. To further improve connectivity, the Government will provide Rs. 37,880 crores  for road construction by National Highways Authority of India. 8,500 KMs of roads will be added in this Financial Year.

Sarkaritel
By Sarkaritel July 10, 2014 14:20