Budget review - Monetary issues

[CS Swati Dodhi]

• Income Tax rate cut to 5 pc for individuals having income between ₹ 2.5 lakh to ₹ 5 lakh
• 10 pc surcharge on individual income above ₹ 50 lakh and upto ₹ 1 cr to make up for ₹ 15,000 cr loss of due to cut in personal I-T rate
• 15 pc surcharge on income above ₹ 1 cr to continue
• A scheme for senior citizens to ensure 8 per cent guaranteed returns
• Political parties can receive donations in cheque, electronic mode; electoral bonds to be issued by RBI
• Maximum amount of cash donation a political party can receive will be ₹ 2000 from any one source as part of effort to clean political funding
• 3 yr period for long-term capital gains tax on immovalble property reduced to 2 years; base year indexation shifted from 1.4.1981 to 1.4.2001
• No transaction above ₹ 3 lakh in cash will be allowed as suggested by SIT
• To make MSME companies more viable, govt proposes to reduce IT tax with annual turn over of ₹ 50 core up to 25 per cent
• I-T for smaller cos with turnover of upto ₹ 50 cr up to 25 per cent
• Not possible to remove MAT levied on advance tax for now; carry forward allowed for 15 yrs instead of 10 yrs
• Relaxation in norms for Start Ups for getting tax exemption
• Capital gains tax exempted for the land pooled to build new capital of Andhra Pradesh effective from 2.6.2014