Economy
- Expects sustained growth of 7-8% or above in next 3 to 4 years, with lower inflation, lower current & fiscal account deficit.
- Target of Fiscal Deficit for FY15 – 4.10% of GDP, FY16 – 3.60% of GDP and FY17 – 3.00% of GDP
- Investments
- Kisan Vikas Patra (KVP) – Post Office savings / investment instrument will be reintroduced. Earlier in this scheme, your investment used to double in 8 years & 7 months.
- Maximum investment in Public Provident Fund (PPF) has been increased to Rs.1.50 lakhs in a financial year
Investment
- Introduction of National Savings Certificate (NSC) with life insurance cover for Girl Child.
- Introduction of REIT (Real Estate Investment Trust) and InvIT (Infrastructure Investment Trust), which will have capital gains tax benefit similar to Equity Shares.
- One Demat Account for all kinds on investments and uniform KYC (Know Your Customer) across all financial services.
- Introduction of Varistha Pension Bima Yojna for a period of 1 year from 15 August, 2014 to 14 August, 2015.
Education
- Set up 5 new IIT (Indian Institute Of Technology) in Jammu, Chattisgarh, Goa, Andhra Pradesh and Kerala and IIM (Indian Institute Of Management) in Himachal Pradesh, Punjab, Bihar, Odisha and Maharashtra.
- Set up 4 new AIIMS (All India Institute Of Medical Sciences) in Andhra Pradesh, West Bengal, Vidarbha in Maharashtra and Poorvanchal in UP and add 12 more government medical colleges.
Taxation
Direct Tax
- Increase in personal income tax slabs for individuals and senior citizen by Rs.50,000. Thus, the tax exemption limit for FY14-15 for individuals will be Rs.2.50 lakhs and for senior citizen will be Rs.3 lakhs. This will effectively save tax of Rs.5,150 for all individuals.
- Increase in the limit of tax deduction available under section 80C to Rs.1.50 lakhs in a financial year. Taking the benefit of this will effectively reduce additional tax for individuals under 10% tax slab by Rs.5150, 20% tax slab by Rs.10,300 and 30% tax slab by Rs.15,450.
- Increase in the limit of tax deduction available under section 24B to Rs.2 lakhs for interest paid on Home Loan for a self-occupied property.
- Change in classification of Debt Mutual Funds for the purpose of Capital Gains and increase in the tax rate of Long Term Capital Gains. It will be considered as a Long Term Capital Asset if hold for atleast 36 months, and will capital gains will be taxed at 20%.
- Governement appeals to all political parties to resolve to pass the GST Laws and the Direct Tax Code in 2014-15
Indirect Tax
- No change in Service tax, it stands @ 12.36%
- Custom Duty to make LCD / LED TVs below 19 inch, Computer Monitors, Mobile Phones, Diamonds, etc cheaper.
- Custom Duty to make Imported Electronic goods, Cigarettes, Pan Masala, Guthka, Aerated Drinks, etc expensive.
