Finance Minister, P Chidambaram’s once delivered a non-populus Budget. In his interim budget in parliament today, he announced massive excise duty cuts in the auto sector making cars cheaper.
-Excise duty on SUVs have been cut to 24% from 30%
-Excise duty on Small cars, motor cycles, scooters and commercial vehicles have been cut to 8% from 12%
-Excise duty on Large and Mid-segment cars have been cut to 20% from 24%
-Manufacturing Sector gets a boost…………Excise duty lowered from 12% to 10%
Impact of Budget on Students :
In a relief to Indian students that have taken an education loan from PSU Banks, the Finance Minster announced a moratorium period for interest on all education loans taken from March 2009 to December 2013, the move will benefit 9 lakh students.
Impact of Budget on Mobiles
To encourage the domestic production of mobile handsets and reduce the dependence on imports, it is proposed to restructure the excise duty for category of mobile handsets. The rates will be 6 percent with CENVAT credit or 1 percent without CENVAT credit.
The FM also announced that excise duty for capital goods and consumer goods will be cut to 10% from 12%
Service Tax Exemption on loading, unloading, storage of rice
The services provided by cord blood banks is exempted from Service Tax.
There is no change in Personal income tax: Income tax rates for Individual remain same for year 2014-2015 (assessment year 2015-2016)
Download Finance Bill 2014
Download Highlights of Budget 2014