Thursday 10 July 2014

Summary of India Finance Budget 2014 .




SN
Section
Amendment Made
Impact
1
Rate of Personal tax
Limit increased by Rs. 50,000/-. Now tax rate for Individual below 60 yrs age is
0-2.5 Lakh – Nil
2.5 – 5 Lakh – 10%
5 – 10 Lakh – 20%
Above 10 Lakh – 30%
Positive
2
80C
Investment deduction Limit increased to Rs. 1.5 Lakhs
Positive
3
24
Interest on self occupied home loan increased to 2 Lakh
Positive
4
115-O
Dividend Distribution Tax – increased to 17.65% from 15% w.e.f 1.10. 2014
Negative
5
112
Long term capital gain on Debt oriented M Fund increased to 20%
Negative
6
32AC
Additional depreciation @ 15% on new P&M exceeds Rs. 25 Crore
Positive
7
80-IA
Extension of tax holiday to power sector
Positive
8
35AD
Deduction in respect of capital expenditure on specified business
Positive
9
194LC
Concessional rate on tax@ 5% on overseas borrowings without PAN
Positive
10
115BBD
Tax @ 15% on foreign dividend income
Positive
11
2(14)
Investment made by FII in India is Capital asset
Negative
12
51
Advance for transfer of capital asset is taxable
Negative
13
10(10D)
TDS @ 2% on payment  received from insurance companies
Negative
14
37(1)
No Allow ability of CSR Expenses
Negative
15
40(a)(i)
Disallowance restricted to 30%
Positive
16
48
Definition of Cost Inflation index linked to Inflation
Positive

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