Personal tax exemption limit raised by Rs 50,000; 15% investment allowance to mfg cos
Updated: Jul 10, 2014 04:02:41pm
New Delhi, Jul 10 (KNN) The General Budget has raised the personal income-tax exemption limit by Rs 50,000 that is, from Rs 2 lakh to Rs 2.5 lakh in the case of individual taxpayers, below the age of 60 years. Exemption limit has been raised from Rs 2.5 lakh to Rs 3 lakh in the case of senior citizens.
However there is no change in the rate of surcharge either for the corporates or the individuals, HUFs, firms etc. The budget has proposed to continue education cess at 3 per cent.
Investment limit under section 80C of the Income-tax Act has also been raised from Rs 1 lakh to Rs 1.5 lakh and deduction limit on account of interest on loan in respect of self-occupied house property raised from Rs 1.5 lakh to Rs 2 lakh.
“To incentivize small entrepreneurs an investment allowance at the rate of 15 per cent to a manufacturing company that invests more than Rs 25 crore in any year in new plant and machinery. The benefit to be available for three years - for investments up to March 31, 2017.
“Investment allowance to manufacturing company investing more than Rs 100 crore announced last year to continue in parallel till March 31, 2015, the Budget proposed.
To bring greater certainty and to encourage fund manager to shift to India, income arising to foreign portfolio investors from transaction in securities will be treated as capital gains. Concessional rate of 15 per cent on foreign dividends without any sunset date will be continued.
To augment low cost long term foreign borrowings for Indian companies, the eligible date of borrowing in foreign currency has been extended from March 31, 2015 to March 31, 2017 for a concessional tax rate of 5 per cent on interest payments.
Tax incentive has been extended to all types of bonds instead of only infrastructure bonds.
The budget proposes introduction of a “Roll Back” provision in the Advanced Pricing Agreement (APA) scheme so that an APA entered into for future transactions is also applicable to international transactions undertaken in previous four years in specified circumstances.
To remove tax arbitrage, rate of tax on long term capital gains has been increased from 10 per cent to 20 per cent on transfer of units of Mutual funds, other than equity oriented funds.
“Sixty more Ayakar Seva Kendras will be opened during the current financial year to promote excellence in service delivery. Net effect of the direct tax proposals will result in revenue loss of Rs 22,200 crore,” the Budget said. (KNN/SD)
However there is no change in the rate of surcharge either for the corporates or the individuals, HUFs, firms etc. The budget has proposed to continue education cess at 3 per cent.
Investment limit under section 80C of the Income-tax Act has also been raised from Rs 1 lakh to Rs 1.5 lakh and deduction limit on account of interest on loan in respect of self-occupied house property raised from Rs 1.5 lakh to Rs 2 lakh.
“To incentivize small entrepreneurs an investment allowance at the rate of 15 per cent to a manufacturing company that invests more than Rs 25 crore in any year in new plant and machinery. The benefit to be available for three years - for investments up to March 31, 2017.
“Investment allowance to manufacturing company investing more than Rs 100 crore announced last year to continue in parallel till March 31, 2015, the Budget proposed.
To bring greater certainty and to encourage fund manager to shift to India, income arising to foreign portfolio investors from transaction in securities will be treated as capital gains. Concessional rate of 15 per cent on foreign dividends without any sunset date will be continued.
To augment low cost long term foreign borrowings for Indian companies, the eligible date of borrowing in foreign currency has been extended from March 31, 2015 to March 31, 2017 for a concessional tax rate of 5 per cent on interest payments.
Tax incentive has been extended to all types of bonds instead of only infrastructure bonds.
The budget proposes introduction of a “Roll Back” provision in the Advanced Pricing Agreement (APA) scheme so that an APA entered into for future transactions is also applicable to international transactions undertaken in previous four years in specified circumstances.
To remove tax arbitrage, rate of tax on long term capital gains has been increased from 10 per cent to 20 per cent on transfer of units of Mutual funds, other than equity oriented funds.
“Sixty more Ayakar Seva Kendras will be opened during the current financial year to promote excellence in service delivery. Net effect of the direct tax proposals will result in revenue loss of Rs 22,200 crore,” the Budget said. (KNN/SD)
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