It is time for Team Narendra Modi to walk the talk. The Budget 2014 has so far met with extreme reactions, been criticized to be “micro”, ” congress-like” to even “boring”. In this section “Budget 2014 Live: What does FM say?”, we would provide you with live highlights of what the Finance Ministry has in store for start-ups and finance sectors. 

Highlight-1:    Tax exemption limit for senior citizens increased from Rs. 2.5 lakhs to Rs. 3 lakhs.

Highlight- 2: Tax exemption limit for small and marginal tax payers increased from Rs. 2 lakhs -Rs. 2.5 lakhs.

Highlight-3: Provide investment allowance at 15% for 3 yrs to manufacturing company which invest more than Rs 25 cr in plant and machinery

Highlight-4: 80C limit enhanced from Rs. 1 lakh to Rs. 1.5 lakh. Higher tax exemption limit backed by increased tax saving ceiling is indded a good news for small and medium tax payers

Highlight-5: No change in tax rates for Individuals and HUFs

Highlight-6: Investment in PPF increased to 1.5 Lakhs

Highlight-7: To strengthen tax administration governing transfer pricing in MNCs

Highlight-8: Tax Rebate on dividend by Foreign Companies retained

Highlight-9: Government to deepen the currency derivative market, liberalise ADR, GDR regime

Highlight- 10: To introduce new Indian Accounting Standards

Highlight- 11: Proposes to extend 5% withholding tax to all bonds and encourage FIIs

Highlight-12: To establish 7 industrial cities all over India, award 16 new ports.

Highlight- 13: Excise duty on cigarettes and additional tax on aerated water that has sugar announced to be increased. A hike in excise duty on gutkas from 60% to 70%

Highlight-14: TV, Computer, Fridge to be cheaper

Highlight-15: To extend service tax on advertising in Mobile Phone media space whereas print media continues to remain exempted.

Highlight-16: Service tax likely to be imposed on radio taxis.

Highlight-17: Export Duty on Bauxite is to be raised from 10% to 20%, whereas footwear gets cheaper ( 6% from 12%) , gutka, pan masala, cigarettes penalized with a higher excise duty (11% -72% on cigarettes)

Highlight-18: to set up 10,000 crore Start-Up Fund for new businesses

Highlight-19: To revise Special Economic Zones to boost GDP.

Highlight-20: All Government departments, ministries to be linked by e-platform by 31st December,2014

Highlight-21: Housing loan rebate hiked from Rs. 1.5-Rs. 2 lakhs

Highlight- 22: FDI in defence to be introduced at 49 % (bit disappointing may be)

So, what sort of budget was it? Not a best one indeed, not a bad one either! A major point however was that there was no timeline that was fixed. What effect will these pointers have in their practical implementation is something to watch out for.