Concessional withholding tax on overseas borrowing extended to long term bonds and exempted from PAN requirement for qualifying interest.
The concessional withholding tax rate previously limited to long term infrastructure bonds is extended to interest on any long term bond issued by Indian companies for foreign borrowings, and the eligibility period for such concessional treatment is extended to borrowings made before 1st July, 2017. A related amendment expands the exception to higher withholding for non furnishing of permanent account numbers so that it applies to interest on any qualifying long term bond. These amendments take effect from 1st October, 2014.

Interest deduction cap for self-occupied house property increased, raising allowable interest deduction and applying from the specified assessment year.
Amendment increases the allowable interest deduction for computing income from house property where the property is self-occupied and acquired or constructed with borrowed capital, raising the statutory ceiling on such interest deduction to a higher fixed limit to reflect increases in property values and financing costs, with prospective application to the assessment year following enactment and subsequent years.

Increase in deduction limit under section 80C expands allowable investments ceiling for individuals and HUFs.
The Finance (No. 2) Bill, 2014 raises the deduction limit under section 80C from Rs. 1,00,000 to Rs. 1,50,000 for individuals and Hindu undivided families in respect of specified instruments (life insurance premia, provident fund contributions, deferred annuity schemes, etc.), allows allocation across eligible instruments within the overall ceiling, and provides consequential amendments to related provisions, with effect from 1 April 2015 for the assessment year 2015 16 and thereafter.

Investment allowance expanded: lower threshold and extended period to widen qualifying plant and machinery deductions.
Section 32AC permits a 15% deduction of cost of new plant and machinery for manufacturing companies meeting prescribed investment thresholds. The proposal extends the qualifying period to 31 March 2017, lowers the single-year investment threshold for investments made on or after 1 April 2014, and preserves entitlement for companies meeting the earlier combined higher threshold across specified previous years. The amendment is intended to simplify eligibility, include medium-size investments, and takes effect from 1 April 2015 for the relevant assessment years.

Concessional tax on long-term capital gains extended to listed securities and zero coupon bonds with future applicability.
Amendment applies a concessional rate of ten per cent on long term capital gains to listed securities (other than units) and zero coupon bonds, clarifying that units of equity oriented funds liable to securities transaction tax remain outside this concession; the amendment is prospective and governs the subsequent assessment year onward.

Short-term capital asset definition expanded to change holding period for unlisted securities and non-equity mutual fund units.
The amendment revises the short-term capital asset definition so that an unlisted security and a unit of a mutual fund (other than an equity oriented mutual fund) shall be a short-term capital asset only if held for not more than thirty-six months; the change is prospective and applies from the assessment year following the stated effective date.

Financial assistance for rubber sector supports processing infrastructure and plantation development across regional categories under plan allocations.
Financial assistance is provided by the Rubber Board to Rubber Producers Societies and Self Help Groups in non-traditional regions for procurement of rubber rollers, construction of smokehouses and effluent treatment plants, alongside plantation development and extension programmes to enhance productivity and quality in the smallholding sector; the Twelfth Five Year Plan sets distinct allocations for traditional/non-traditional regions and a separate allocation for the North Eastern region.

Agricultural subsidy inquiry triggers review of marketing incentive for raw sugar to aid farmer arrears and diversification.
An international trade inquiry questioned an Indian incentive tied to marketing and promotion of raw sugar production; the scheme, subject to review before the next sugar season, was explained as aimed at facilitating payment of outstanding arrears to farmers and promoting product diversification, and no punitive measures had been initiated when information was supplied.

Austerity measures impose expenditure cuts and operational restrictions to strengthen fiscal discipline across government functions.
Austerity measures require centralised expenditure management directives imposing restraints on non-plan spending and operational activities to promote fiscal discipline. The Government ordered reductions and operational restrictions - including a ten percent cut in non-plan expenditure, limits on seminars and conferences, prohibition on vehicle purchases except condemned replacements, constraints on travel, a ban on creation of posts and consultancy assignments, and controls on subsidies. A Medium-term Expenditure Framework Statement establishes a three-year rolling target for reallocating resources to prioritized schemes, with implementation responsibility resting with respective Ministries and Departments.

Bilateral investment protections reaffirm fair treatment and dispute resolution, with a government review to update the model agreement.
Bilateral Investment Promotion and Protection Agreements provide fair and equitable treatment, most favoured nation and national treatment protections and a dispute resolution mechanism to promote foreign investment. A Government Working Group has been constituted to review and update the Model BIPA text, incorporating twenty years of implementation experience, international best practices, and stakeholder opinions and reservations to recalibrate substantive protections and procedural clauses.

Subsidy reduction measures aim to contain fiscal outlay while protecting targeted beneficiaries through pricing and direct transfer reforms.
Interim budget allocations for 2014-15 set out major subsidy outlays and the Government's objective to reduce expenditure on central subsidies while safeguarding marginal and disadvantaged beneficiaries. Measures to reduce subsidy burden include deregulation of diesel prices, administrative streamlining and rationalization of fertilizer and food subsidies, and implementation of direct transfer of subsidy via the Aadhar platform to improve targeting and generate economies.

Foreign equity limit in insurance allows foreign companies to hold substantial stakes in insurers, enabling additional capital inflows.
Increase in foreign equity share limit in the insurance sector contemplates permitting foreign companies, directly or through subsidiaries or nominees, to hold up to forty-nine percent of paid up equity capital in Indian insurance companies, as provided in the Insurance Laws (Amendment) Bill, 2008; the measure is presented as enabling additional capital flows and accompanied by stakeholder consultation.

Disaster recovery financing to restore housing and public services while strengthening state disaster response capacity.
Financing agreements establish a multi component Odisha Disaster Recovery Project to restore housing and public services and to increase state capacity to respond to eligible crises. The project comprises five components: Resilient Housing Reconstruction and Community Infrastructure; Urban Infrastructure in a designated city; Capacity Building for Disaster Risk Management; Implementation Support; and Contingent Emergency Response. The State government is the implementing agency for a five year implementation period, targeting defined coastal, urban and slum populations with specified beneficiary considerations.

Public-Private Partnership institution proposed to mainstream PPPs, enabling advanced contracting and faster dispute resolution across infrastructure sectors.
Proposal to establish 3P India as an institution to mainstream Public-Private Partnerships by supporting advanced contracting models and creating expedited dispute redressal mechanisms for infrastructure PPPs; paired with sectoral initiatives prioritising port connectivity and SEZs, inland waterways development under Jal Marg Vikas, airport development via the Airport Authority or PPPs, and enhanced national and state highway investments alongside expressway and industrial corridor works.

Technology development fund to finance R&D in defence systems and support public, private and academic research initiatives.
An initial allocation establishes a technology development fund to provide resources to public and private sector entities, including small and medium enterprises, and academic and scientific institutions, for research and development of defence systems to enhance cutting edge technology capability.

Energy sector investment to modernize thermal power, expand solar projects, and boost coal and gas production nationwide.
The Budget allocates initial funding for an Ultra-Modern Super Critical Coal Based Thermal Power Technology scheme, establishes measures for coal quality control and assured coal supply to plants (including those commissioned or to be commissioned by March 2015) to unlock investments, and advances renewable and gas initiatives by funding Ultra Mega Solar Projects, solar agricultural pumps and canal-bank solar parks, accelerating Green Energy Corridor implementation, promoting Coal Bed Methane development and reviving wells, and scaling up piped natural gas distribution.

Food sector reform to restructure grain handling and maintain affordable wheat and rice through stock management and market sales.
The Government will prioritise reforms including restructuring of the Food Corporation, reduction of transportation and distribution losses, and improvement of the Public Distribution System to ensure reasonable prices of wheat and rice for weaker sections, relying on Central pool stock management and, when required, open market sales to stabilise prices.

Fiscal deficit targeted with tightened consolidation and increased plan spending to boost infrastructure, health, education, women and children.
Budget estimates set total expenditure and financing targets for 2014-15, specifying Gross Tax Receipts, Non Tax Revenue, capital receipts other than borrowings and the Net Share of the Centre. The Budget distinguishes Non plan and Plan expenditure, provides additional provisions for fertiliser subsidy and armed forces capital expenditure, and records Plan increases targeted to agriculture, health and education capacity, transport and infrastructure, clean energy, water resources and river conservation. A separate statement and allocation for the North Eastern Region is introduced, alongside earmarked allocations for women and child welfare.

Regional development funding and infrastructure commitments expand agricultural, rail, and cultural initiatives under the national budget.
Announces Budgetary Allocations and policy initiatives targeted at regional development in the North Eastern Region and implementation of Union obligations from state reorganisation. Funding is designated for promotion of commercial organic farming in the North Eastern States, for expansion of rail connectivity in the North Eastern Region, and for creation of a 24x7 broadcast channel to promote the region's cultural and linguistic identity. The statement also records the Government's commitment to fulfil obligations under the Andhra Pradesh Re-organisation Act through departmental provisions.

Police modernization funding expanded to strengthen state forces and enhance border and coastal security infrastructure.
The Union government substantially increased central funding for police modernization, ordered a review of the scheme for state police forces, and announced dedicated allocations for border infrastructure, socio economic development of border villages, marine policing assets, and Additional Central Assistance for Left Wing Extremist affected districts.