As India approaches the Union Budget 2026, it is worth revisiting some landmark tax announcements from earlier budgets to understand which provisions continue to shape today’s income tax and personal finance landscape.
The Union Budget for 2014–15, presented by the late Finance Minister Arun Jaitley, was particularly significant. It focused on easing the tax burden on individuals, promoting household savings, and improving social security coverage. More than a decade later, several of those measures are still relevant—though often in a modified form.
What changed in 2014–15?
The basic exemption limit was raised by ₹50,000:
From ₹2 lakh to ₹2.5 lakh for individuals below 60 years
From ₹2.5 lakh to ₹3 lakh for senior citizens
No changes were made to tax slabs or tax rates. Surcharge rates were also left untouched, and the 3% education cess continued.
Relevance in 2026
These exemption limits remain applicable only under the old tax regime. Under the new tax regime, the basic exemption limit has been enhanced to ₹4 lakh from FY 2025–26, making the 2014 increase largely redundant for new-regime taxpayers. Additionally, the cess has since been renamed Health and Education Cess, now levied at 4%.
What changed in 2014–15?
Budget 2014 increased the LTCG tax rate on non-equity mutual funds to 20% and extended the holding period for long-term classification from 12 months to 36 months. This was aimed at removing tax arbitrage between debt mutual funds and other fixed-income instruments.
Relevance in 2026
The capital gains framework has since been rationalised:
Only two holding periods now apply—12 months and 24 months, depending on the asset class
LTCG on mutual funds (equity and non-equity) is currently capped at 12.5%
Equity mutual funds additionally enjoy an exemption of ₹1.25 lakh on long-term gains
Thus, while the original provision no longer applies, it laid the groundwork for today’s uniform capital gains structure.
What changed in 2014–15?
The budget addressed anomalies in dividend taxation by moving towards a more transparent system, setting the stage for taxing dividends in the hands of investors rather than at the distribution level.
Relevance in 2026
Dividend income is now fully taxable in the hands of shareholders at applicable slab rates. The dividend distribution tax (DDT) regime has been abolished, making dividend taxation more straightforward and investor-specific.
What changed in 2014–15?
The annual investment limit under PPF was increased from ₹1 lakh to ₹1.5 lakh.
Relevance in 2026
The ₹1.5 lakh limit continues to apply and qualifies for deduction under Section 80C—but only under the old tax regime.
What changed in 2014–15?
A new small savings scheme for the welfare of the girl child was announced, later launched as the Sukanya Samriddhi Yojana.
Relevance in 2026
SSY remains one of the most attractive government-backed savings schemes, offering guaranteed returns and EEE (Exempt–Exempt–Exempt) tax benefits.
What changed in 2014–15?
KVP was reintroduced to channel household savings into formal financial instruments.
Relevance in 2026
KVP continues to be available, offering assured returns, though without tax deduction benefits.
What changed in 2014–15?
The introduction of a Uniform Account Number (UAN) aimed to improve portability of provident fund accounts.
Relevance in 2026
UAN has become central to EPFO operations, with digital services such as online transfers, withdrawals, and KYC updates now standard.
What changed in 2014–15?
The minimum pension under the Employees’ Pension Scheme (EPS) was raised to ₹1,000 per month, and the wage ceiling for EPS contributions was increased from ₹6,500 to ₹15,000.
Relevance in 2026
These provisions remain applicable, and EPFO has further strengthened member services in recent years.
What changed in 2014–15?
The deduction limit under Section 80C was increased from ₹1 lakh to ₹1.5 lakh.
Relevance in 2026
The enhanced limit continues to apply, only for taxpayers opting for the old tax regime.
What changed in 2014–15?
The interest deduction for self-occupied house property was increased from ₹1.5 lakh to ₹2 lakh.
Relevance in 2026
The ₹2 lakh deduction remains available under the old regime. Under the new regime, interest on self-occupied property is not deductible, though interest on let-out property is allowed subject to conditions.
While India’s tax system has undergone substantial reforms since 2014—most notably the introduction of the new tax regime—the Union Budget 2014–15 continues to influence today’s framework. Many provisions introduced then still apply, particularly for taxpayers who prefer the old tax regime and for those investing in government-backed savings schemes.
As Budget 2026 approaches, understanding these legacy provisions helps taxpayers make informed decisions and appreciate how India’s tax policy has evolved over the last decade.
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