The Union Finance Minister, P Chidambaram, presented the interim budget on 17 February 2014. Usually, an interim budget does not have major tax changes as its main purpose is to provide the existing government with necessary funds until the new government is formed.

While there are no changes with respect to direct taxes in this interim budget, some of the provisions that will lapse after 31 March 2014 (unless they are revived in the regular budget by the newly elected government) are as follows:

• Section 80-IA(4)(iv) provides for profit-linked deduction to certain power sector undertakings that are set up in India on or before 31 March 2014. Hence, such a deduction would not be available for units set up on or after 1 April 2014.
• Section 10(49) provides for exemption of income earned by National Financial Holdings Company Limited (NFHCL) prior to 31 March 2014. Such an exemption would not be available for income earned after 1 April 2014.
• Section 80EE provides for deduction of interest up to INR 1,00,000 on housing loans up to a specified limit taken by an individual during financial year (FY) 2013-14. This period has not been extended; hence, this deduction would not be available with respect to housing loans taken after 1 April 2014.
• Section 115BBD provides for a concessional rate of tax of 15% on dividends received by an Indian company from a specified foreign company up to 31 March 2014.
• In case the conditions specified under Rule 4(ea) of Schedule IV of the Income Tax Act, 1961 are not satisfied until 31 March 2014, all benefits extended to provident funds recognised before 31 March 2006 would be withdrawn with effect from 1 April 2014.