THE INDIAN BUDGET – A PERSPECTIVE
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.
REBATES AND DEDUCTIONS ENHANCED
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.
What about the income range for the females. Has it been increased from 250,000 to some higher amount or it is in parity with males only?
There is nothing mentioned regarding the income tax rebate of Rs.2000 for the taxable income up to 500,000. Will this rebate be admissible or not now? I think no now.
The separate limit for women was removed last year itself. currently it is in parity to men.
The rebate does not apply to 2014-15 accounting year.