New Modi Government, New Ideas and New Vision
Considering that the previous UPA Congress Sonia govt under FM P Chidambaram had run down the economy, the current FM Mr Arun Jaitley will have his hands full with repair and maintenance of the economy for a foreseeable period of time.
Rail budget was ok good, mainly because it was not a bihar or bengal rail budget but a National rail budget . Bullet trains are unviable idea for India considering the tickets will almost match airline costs and political interference for unviable routes. The JNR’s Shinkansen network cost 28 trillion Yen, and its privatization paid only 9.2 trillion yen. Japanese bullet or the German ICE are not very affordable to regular citizens of those countries, though they are great for businessmen, why not improve railways for millions of Mumbai rail commuters who bring immense value to the national GDP , and why not introduce more rajdhani style high speed intercity trains ?
Considering the difficulties faced by the govt, the raising of 80C limit by 50% and more importantly the basic exemption by 25% which directly affect the aam admi is commendable .
All that the govt has to do is focus on curbing INFLATION and streamlining the Supply Side and cutting out the layers of apmc rent seekers and middle men from food and essentials supply chain.
For ASSESSMENT YEAR 2015-2016
RELEVANT TO FINANCIAL YEAR 2014-2015
TAX FREE INCOME :
50000 increase in tax free income for Indls and Seniors.
INDIVIDUALS: Upto 2,50,000 – Nil
INDIVIDUAL RESIDENTS 60 TO 80 Yrs: Upto 3,00,000 – Nil
INDIVIDUAL RESIDENTS 80 Yrs +: Upto 500,000 – Nil ?
TAX SLABS
I. Upto 5,00,0000 {10% of the amount exceeding Tax free Income}
II. Upto 10,00,000 – {I + 20% of the Income over 500000}
III. Above 10,00,000 – {I + II + 30% of the Income over 1000000}
1. Education Cess of 3% on Income-tax.
2. Maximum 80C exemption & PPF investment limit, now Rs 1.5 lakh.
3. Housing loan: Rebate hiked to Rs 2 lakh for self occupied houses.
4. Tax on LTCG on debt funds to 20%, and time moved to 3 years… Bad for u if u own a debt fund .
5. Single Demat Account for all ur financial assets & Unified KYC
6. E-Visas …to promote tourism
7. REITs policy changes to benefit investors in real estate sector.
8. NSC with Insurance … an attempt to make the small savings more attractive.
9. Im not positive on Sardar Patel Statue fund of 200 Crores, though i am a great fan of leaders like Sardar Patel and Bal Gangadhar Tilak, moneys could be better spent on improving PRIMARY EDUCATION ie better world class CBSE style primary education for all, especially for the deserving economically backward people. We desperately need IIT Styled, high quality primary schools for deserving poor kids !
What costs more ?
Cigarettes, Pan Masala, Gutka, chewing tobacco, Colas with sugar and soda, Radio Taxis.
What costs less ?
Footwear, LED lights, LCD and LED TV prices below 19 inches to go down.
Reactions and observation :
1. Sonia Gandhi says : Jaitley copied Congress schemes, later says no spending on Social sector. Real estate Shares like DLF up 10% , Vadra will be happy with #Budget2014
2. Praful Patel of NCP , the beedi baron will not be happy with the taxes !
3. Ashutosh AAP : There is not a single big ticket idea which world was expecting. Where is the change in Budget?Just an extension of UPA policies.
Tech and Trek 