Budget 2014 – What is it for me?

At the request of the founding leadership of the Learning & Development group, I am sharing herewith some key budget provisions over the next few posts.

The first group that really jumps on to the provisions of the budget is the salaried class, a group which has no option except to pay every possible penny of tax in the land. We start with the provisions for the income tax.

These provisions are applicable for the financial year 2014-2015, and will be ratified by the parliament.


The basic individual and HUF tax slabs have been increased:

Old Income Range Rs.        Rate (%)   New Income Range Rs.              Rate(%)

Upto 2,00,000                       Nil             Upto 2,50,000                       Nil

2,00,001 – 500,000             10             2,50,001 – 5,00,000                   10

5,00,001 – 10,00,000            20             5,00,001 – 10,00,000             20

10,00,001 and above           30             10,00,001 and above               30

Exemption limit for senior citizens (60 and above) enhanced to Rs. 300,000

Exemption limit for very senior citizens (80 and above) remains at Rs. 500,000

Surcharge remains at 10 per cent on income exceeding Rs. 1 crore

Tax on partnership firms and co-operative societies unchanged. Surcharge remains at 10 per cent for incomes exceeding Rs. 1 crore:

Corporate tax rates remain unchanged i.e.


Domestic   -30% – Surcharge at 5 % and 10 % where income exceeds Rs. 1 crore and 10 crore respectively.

Foreign      -40% – Surcharge at 2 % and 5 % where income exceeds Rs. 1 crore and 10 crore respectively.

Education cess at 2 % and Secondary and Higher Education cess at 1 % remain unchanged, which implies that this amount will be charged on all payable tax amounts.


Section 80-C deduction in respect of specified investments enhanced from Rs. 1,00,000 to 1,50,000, and investment in PPF also increased to Rs. 1,50,000

Deduction limit on account of interest on loan in respect of self occupied house property raised from Rs. 1,50,000 to Rs. 2,00,000.

Mohit Gupta