Is the Union Budget 2014-2015 convincing?
- The Finance Minister said that focus will stay on the measures to reduce the expenditure so as to bring down the fiscal deficit target.
- The budget brought happiness and relief for the middle class people by making in small changes in slew of tax breaks.
- Investors got the benefit of enhanced limit for PPF investment. The limit is increased to 1.5 lac from the previous limit of 1 lac.
- Consumers got special privileges in the form of reduced custom duty as well the excise duty. They can now carry free baggage allowance up to Rs 45000.
- The investment sectors like real estate, infrastructure received pass through status so as to avoid double tax.
- The focus will stay on three important factors inflation, unemployment and slow growth rate. The best part is the Fm didnt announce any optimistic projections.
- As far as tax benefits are concerned, they were confined to the middle class as 10% surcharge was kept unchanged for the individuals with income over 1crore.
- There were some strict actions taken by government on tax front by hiking the tax rate for long term capital gains coming from listed mutual funds to 20%.
- The excise duty on the products like cigarettes, cigars, fizzy drinks, energy drinks etc that are popular among masses was hiked. The manufacturers will pass on the hike by increasing prices.
- Businessmen got disappointment when they heard the announcement about the retrospective amendment in matter of Indirect shares transfer. It was retained as it is in the budget.
- The union budget presented by the new NDA government was more or less in line with the welfarist budget of previous UPA government.