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Budget 2014: Will you save or spend? Tell us!

Last updated on: July 10, 2014 18:32 IST

Budget 2014: Will you save or spend? Tell us!


Finance minister Arun Jaitley's maiden budget seems to have ticked all the right boxes.

More so, Jaitley's personal tax proposals, hike in income tax exemption limit, hike in public provident fund (PPF) limit and increase in the interest component of home loans will not only leave you with more money to spend and invest but to also create real estate assets.

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For starters, here are some proposals that will either make you spend, invest and/or save depending on your personality:

  • No change in income tax rates; personal income tax exemption limit raised from Rs 2 lakh to Rs 2.5 lakh (which means extra Rs 50,000 that can be saved or spent without worrying about tax); for senior citizens this has been hiked to Rs 3 lakh from Rs 2.5 lakh
  • Tax exemption on interest component on housing loan raised to Rs 2 lakh from Rs 1.5 lakh (this incentivises taxpayers to buy homes)
  • Proposal to increase investment limit under Section 80C from Rs 1 lakh to Rs 1.5 lakh (which means you can now invest more to save tax)
  • Annual PPF ceiling to be enhanced to Rs 1.5 lakh, from Rs 1 lakh (a big boost to long-term savings that can help you build your retirement corpus)
  • Basic custom duty on LCD and LEDs below 19 inch reduced to zero from 10 per cent (this will lead to drop in prices of LCDs and LEDs)

Reader invite:

So, will these steps prompt you to invest, save and spend more?

Tell us what will you do with the extra cash in your hand? How will you take advantage of finance minister Arun Jaitley's maiden budget?

Send us your responses to with subject line (Saving and Investing) and we will publish the best ones on

Photographs: Utam Ghosh/