Key Highlights of the Interim Budget

Below are the Key Highlights from the Interim Finance Bill 2014:

Direct Taxes: No changes in direct tax rates and provisions. Sorry no changes in the tax rates or slabs. However have heart as one will be able to take advantage of any change even during the full budget presentation.

Excise Duty: Some reduction in excise duty rates may provide selective boost to the sectors. Note that these change in rates are only up to 30th June 2014

1. Small cars / motorcycles / CVs cut to 8% (from 12%)
2. SUVs down to 24% (from 30%)
3. Large / mid-segment cars to 24%-20% (from 27%-24%)
4. Mobile handsets down to 6% [with CENVAT] or 1% [without availing CENVAT]
5. Capital Goods / Non-Consumer Durables down to 10% (from 12%)

Service Tax: Some areas have been exempted from service tax; again selective by essential.

1. Services provided by the cord blood banks
2. Services by way of transportation, loading, unloading, packing, storage or warehousing of rice
3. Milling of paddy into rice

Customs Duty:

1. Basic CD Non-Edible Grade Industrial Oils / its fractions, Fatty Acids and Fatty Alcohols rationalized at 7.5%
2. Exemption from CVD on specified road construction machinery and similar imported machinery is withdrawn
3. Concessional CD of 5% provided on Capital Goods imported by the Bank Note Paper Mill India Private Limited

Others:

• Moratorium on interest on student loans taken before 31 March, 2009; to benefit 9 lakh borrowers (Government will pay interest till Dec 2013 on education loans taken before March 31, 2009)
• The Government appeals to all political parties to resolve and pass the GST laws and Direct Tax Code in 2014-15

Reference links:
http://indiabudget.nic.in/ub2014-15/fb/bill1.pdf
http://indiabudget.nic.in/ub2014-15/bh/bh1.pdf