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Homechevron_rightIndiachevron_rightJaitley's budget...

Jaitley's budget targets 7-8 percent growth in three years

Jaitleys budget targets 7-8 percent growth in three years

New Delhi: Seeking to boost household savings, the government Thursday hiked the exemption limit for investments by individuals in financial instruments to Rs 1.5 lakh. Presently the investments and expenditures up to a combined limit of Rs 1 lakh get exemptions under Sections 80C, 80CC and 80CCC of the Income-Tax Act.

The announcement to hike tax savings limit was made by Finance Minister Arun Jaitley in his speech while presenting the Union Budget, 2014-15.

There have been demands from bankers and insurers to hike the tax exemption limit from Rs 1 lakh per annum to encourage household savings. The savings rate has come down from over 38 per cent of GDP in 2008 to 30 per cent in 2012-13.

The hike in the exemption limit would provide much needed relief to the salary earners who are reeling under the impact of high inflation.

The Direct Taxes Code (DTC) too had recommended that the combined ceiling for investments and expenditures be raised to Rs 1.5 lakh per annum.

The financial instruments which enjoy exemption include life insurance premium, public provident fund, employees provident fund, National Savings Certificates, repayment of capital on home loan, equity linked saving schemes sold by mutual funds and bank FDs of five year maturity.

Here are the key highlights:

* Excise duty on cigarettes raised from 11 percent to 72 percent

* Thirteen more airports to get 24x7 customs facilities

* Excise duty to be cut to revive manufacturing

* Allocation of Rs.500 crore for Delhi's water schemes

* Colour TVs to cost less on reduced customs duties

* Free baggage allowance raised from Rs.35,000 to Rs.45,000

* Gas pipeline grid of 15,000 km needs to be doubled

* Revenue loss of Rs.22,000 crore due to direct tax proposals

* Excise duty on footwear halved

* Total expenditure in 2014-15 estimated at Rs.17,97,892 crore; plan expenditure estimated at Rs.12,19,892 crore

* Government to take a view on Direct Tax Code

* Six debt recovery tribunals to be set up

* Five new tourist circuits to be established

* World class convention centre to come up in Goa

* IT exemption limit for those below 60 raised from Rs.2 lakhs to Rs.2.5 lakhs; from Rs.2.5 lakhs to Rs.3 lakhs for senior citizens

* No change in surcharge for corporates; education cess to continue

* Allocation of Rs.1,000 crore for implementing One Rank One Pension scheme

* War Memorial and War Museum to be established at Princess Park in New Delhi; Rs.1,000 crore allocated

* Allocation of Rs.50 crore for National Police Memorial

* Allocation of Rs.2.037 crore for creating integrated Ganga conservation mission

* National sports foundations to be set up for disciplines like shooting, wrestling and boxing; Jammu and Kashmir gets Rs.200 crore to upgrade sports facilities; Sports university to come up in Manipur

* Defence allocated Rs.229,000 crore; modernisation gets Rs.5,000 crore over and above interim budget

* Bharat Depository Receipt to be created

* Uniform KYC norms to be introduced across entire financial sector

* Steps to revive SEZs

* Sixteen new port projects to be taken up this fiscal

* Jal Marg Vikas programme to be launched to promote navigation on Ganga from Allahabad to Haldia

* Hastkala Academy to be set up with allocation of Rs.30 crore

* Six more textile clusters to be set up with allocation of Rs.200 crore

* Corpus of Rs.5,000 crore for long-term loans to farmers

* Kisan TV to be launched to disseminate information in real time

* Allocation of Rs.14,389 crore for rural roads

* Allocation of Rs.50 crore for breeding of indigenous cattle

* Export promotion mission to be established to bring all stakeholders under one umbrella

* Lok Sabha takes five-minute break during finance minister's speech. Jaitley permitted to sit and read out on resumption

* FDI limit in insurance sector raised to 49 percent

* All states to get AIIMS like institutions

* Allocation of Rs.100 crore for soil testing facilities

* Second Green Revolution to be launched with focus on protein revolution

* Allocation of Rs.100 crore to promote good governance

* Allocation of Rs.3,600 crore for drinking water schemes

* Allocation of Rs.500 crore for 5 more IITs and 5 more IIMs

* Allocation of Rs.4,000 crore for National Housing Bank

* Allocation of Rs.500 crore to improve broadband connectivity in rural areas

* To print currency notes with Braille signs

* Allocation of Rs.150 crore to improve safety of women in larger cities

* Allocation of Rs.500 crore to provide 24x7 power in rural areas

* Allocation of Rs.100 crore for "Beti bachao, beti padao" programme

* Allocation of Rs.8,000 crore to improve rural housing

* E-visas to be introduced at nine airports

* New scheme to provide assured irrigation

* Total sanitation in every household by 2019

* Shares of PSU banks to be sold to retail investors

* Aiming at fiscal deficit of 3 percent by 2015-16 and 2 percent by 2016-17

* FDI in defence sector raised to 49 percent from 26 percent

* CBDT to scrutinize all cases under 2012 law on retrospective tax cases

* Problem of black money to be fully addressed

* Expenditure Management Commission to be established this fiscal

* Slow decision-making has resulted in lost opportunities

* Green shoots of recovery in world economy

* Budget will lay down steps aimed at 7-8 percent growth in next few years

* The aim is "Sub ke saath, sub ka vikas" (With everyone, For everyone's development)

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