Budget 2014 for the aam aadmi: What will cost more, what got cheaper

Finance Minister Arun Jaitley on Thursday presented the Narendra Modi government’s first budget, doling out income tax sops as well as raising duties on cigarettes, tobacco, and aerated drinks. [caption id=“attachment_1614273” align=“alignleft” width=“380”] Reuters[/caption] Here are the key points of Jaitley’s budget and how it’s going to affect you. The good news Income tax exemption limit has been raised from Rs 2 lakh to Rs 2.5 lakh and investments under 80C by Rs 50,000 to Rs 1.5 lakh Interest exemption on housing loan on self-occupied property has been raised by Rs 50,000 to Rs 2 lakh Exemption limit for senior citizens has been raised from Rs 2.5 lakh to Rs 3 lakh Baggage allowance for passengers returning from abroad has been raised from Rs 35,000 to Rs 45,000 CRT TVs, LCD and LED TV panels of less than 19-inches will be cheaper through cuts in customs duties Footwear between Rs 500 and Rs 1000 will be cheaper as excise duty has been reduced from 12 percent to 6 percent Tax exemptions on home loans raised from Rs 1.5 lakh to Rs 2 lakh Soaps and oil products will also be cheaper Branded/premium petrol will be cheaper by Rs 5 after government cuts duty from Rs 7.50 to Rs 2.35/litre E-books, locally manufactured PCs, tablets could also cost less as custom duty will be reduced to zero for e-book readers The bad news: Cigarettes, tobacco, pan-masala, gutka to be expensive as government hikes tax from 11 percent to 72 percent Aerated-drinks, juices, energy drinks will cost 5 percent more as excise duties have been raised Radio cabs, AC buses to cost more as government increases service tax. Cab prices are likely to increase by Rs 3/km Cut and polished diamonds, coloured gem stones to attract 2 percent custom duty Three percent education cess to continue; individuals earning over Rs 1 crore in income will continue to pay 10 percent surcharge