Indian Union Budget 2014-15, Presented by Mr Arun Jaitley on 10th July 2014
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FISCAL DEFICIT
* Fiscal deficit seen at 3.6 percent of GDP in 2015/16
* Accepts fiscal deficit target of 4.1 percent of GDP for 2014/15
* Finance Minister says: "We cannot spend beyond our means"
* Tax-to-GDP ratio must be raised
* Plans to make food and petroleum subsidies more targeted
GROWTH
* Aims for sustained growth of 7-8 percent in the next 3-4 years
* Finance minister says he is bound to usher in policies for higher growth, lower inflation
TAXATION
* No change in personal income tax rates
* Investment limit under Section 80C increased from Rs. 1 lakh to Rs. 1.5 lakhs
* Tax exemption limit for senior citizens changed from Rs. 2.5 lakh to Rs. 3.0 lakhs
* Tax exemption limit for small and marginal, and senior tax payers changed from Rs. 2.0 to Rs 2.5 lakhs
* Aims to approve goods and services tax by the end of this year
* Will not change rules on retrospective taxation
* All pending cases of retrospective tax for indirect transfers to be examined by a high-level committee before any action is taken
* Proposes changes in transfer pricing mechanism
* Extends 5 percent withholding tax on corporate bonds until June 30 2017
* Will provide the necessary tax changes to introduce real estate investment trusts and infrastructure investment trusts
INVESTMENT
* Raises limit on foreign direct investment in defence sector from 26 per cent to 49 per cent
* Raises FDI limit in insurance sector from 26 percent to 49 percent
* To allow foreign retailers, who manufacture products in the country, to sell via e-commerce platforms, a step towards liberalising foreign investment in the country's $13 billion e-commerce sector.
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