Zeebiz Bureau

New Delhi: Finance Minister P Chidambaram on Thursday did not tinker with the Income Tax slabs while presenting the Union Budget 2013-14 in the Lok Sabha.

Chidambaram however said a surcharge of 10% would be imposed on those earning over Rs 1 crore in a year, for 2013-14. This would be applicable for both individuals and corporates.

The Finance Minister announced that housing loan for first time loan takers of up to Rs 25 lakh would get additional deduction of interest of up to Rs 1 lakh in 2013-14. The additional exemption would mean tax benefit gets raised from Rs 1.5 lakh to Rs 2.5 lakh.

Chidambaram also announced the setting up of Nirbhaya Fund for women safety and allocated Rs 1000 crores to it.

Chidambaram noted that the global economic growth has slowed, including that of India. He however added that high growth is a novelty and not beyond India’s capacity.

Highlights of Union Budget 2013-14:

Personal Tax

No changes in personal Income Tax slabs

Surcharge on super rich

Surcharge of 10% for income of Rs 1 cr or more per annum for one year

Surcharge to be applicable for individuals and corporate

1% TDS for property sale worth more than Rs 50 lakh; agri land exempt

Tax credit of Rs 2000 on incomes between Rs2-5 lakh

5.5% tax to GDP ratio for direct tax

4.5% tax to GDP ratio for indirect tax

Tax administration reform commission to be set up to strengthen the system

Our tax to GDP ratio is very low

Should reclaim 11.9% Tax-GDP ratio in short-term

There are 42,800 persons in the country who admitted to a taxable income exceeding Rs 1 cr per year

Donations to National Children’s Fund will be eligible for 100% tax deduction

Long-term infra bonds also eligible for tax deduction; additional Rs 1 lakh deduction for home loans

TDS on value of immovable property as transaction on immovable properties are usually undervalued

Extends tax cuts benefits to Rupee Infrastructure Funds

Educational Cess to continue at 3 %

Securitization Trust income to be exempt

Tax on Royalty for services provided abroad increased by 10%

Corporate Tax

CTT on non-commodities futures at 0.1%

Surcharge on DDT doubled to 10%

Indirect Taxes

No change in peak rate for CD non-agri products

Eco friendly concessions to be prolonged till 2015

Leather and goods duty reduced to 5%

Luxury cars import duty at 100%

Yachts duty at 25%

Luxury motorcycle duty at 75%

No change in customs duty of 10%

No change in excise duty or service tax

Precious, semi-precious duty reduced

Luxury motor vehicles to be taxed more

Baggage rules to permit bringing jewellery duty free limit raised to Rs 50000 for males and Rs 1 lakh for females

Tax on SUVs increased from 27% to 30%; taxis exempt

Excise duty on set top box increased

6% duty on mobiles costing more than Rs 2000

Excise on service tax on all air-conditioned restaurants

Handmade carpets exempt for excise duty

Increase in excise duty on cigarettes by 18%

Excise on readymade garments reduced

Excise on Service Tax defaulters from 1-10-2007 can submit tax without being penalised or interest charged

Advocates need for GST

Miscellaneous

For housing loans limit till Rs 25 lakh – additional Rs 1 lakh exemption for 2013-14 for first time loan takers

Divestment target of Rs 40,000 crore

Rs 50,000 cr tax free bonds to be allowed by select institutes

Inflation indexed Bonds and NSCs to be issued

SMEs to enjoy benefits for 3 years after they outgrow category

Fiscal deficit contained at 5.2%; target set at 4.8%

Direct benefit transfer scheme – 11 lakh have received benefits directly to bank accounts

Revenue deficit estimated at 3.3%

Seek same support of everybody to navigate the Indian economy through crisis

Global economy has slowed from 3.9% to 3.2%

Not unaffected what happens in the world

Current year CSO has estimated growth at 5% and RBI at 5.5% – below India’s potential growth rate of 8%

No reason for gloom or pessimism

Only China and Indonesia are growing faster than India

In 2013-14 only China will grow faster than India

Indian economy growing below potential of 8%

Goal of higher growth leading to inclusive and sustainable growth

Plurality and diversity lead to inequitable distribution which needs to be addressed

Women, SCs/STs and other backwards need to be included

Need to create economic space and achieve socio-economic objective

New Fiscal Consolidation measures undertaken to achieve 5.3%

Current Account Deficit major worry

CAD due to higher coal, oil and gold imports

We have to find 75 bn dollar to finance current account deficit

No solution but FDI, FII, ECB to bridge CAD

Achieving high growth is not a novelty and beyond our capacity

Without growth there will be no development and inclusiveness

UPA govt believes in inclusive development with emphasis on improving human development index

At present economic space is constrained

India doesn’t have the choice between welcoming and spurning foreign investment

Development must be sustainable and must have democratic legitimacy

The battle against inflation must be fought on all fronts

Our battle has brought down headline inflation to 7% and core inflation to 4%

Wisdom lies in finding current level of govt expenditure

Faced with huge fiscal deficit no choice but rationalise expenditure

We have retrieved some economic space

Sufficient funds to each ministry and departments

One overarching goal of the budget is to create opportunities for youth

Estimated expenditure Rs 1490925 lakh cr; Revised Rs 1430825 lakh cr

Planned expenditure will be 29.4% more than previous; all projects to be fully funded

Onus on ministries to completely projects in timely manner

Rs 41561 cr for SC sub plan

Rs 24500 cr to ST sub plan

The funds for sub plan cannot be diverted

Rs 77236 cr for child budget

Rs 200 cr for gender equality

Maulana Azad education foundation corpus gets Rs 160 cr more

Rs 110 cr for dept of disable welfare

Rs 37330 cr to ministry of health and family welfare out of which new national health mission to get Rs 21239 cr

Rs 4727 cr for medical education, training

Rs 1069 cr to department of ayush

Rs 1650 cr to AIIMS like institutions

Rs 65867 cr to HRD ministry

Rs 27258 cr for Sarva Siksha Abhiyan

Rs 3983 cr for Rashtriya Madhyamik Shiksha Abhiyan

Rs 13215 cr for mid-day meal scheme

Rs 17700 cr for children care and education

Rs 15260 cr for clean drinking water

Rs 1400 cr for water purification/ clean arsenic

Rs 80195 cr for MNREGA, Indira Awas Yojna, NREGS

PMGSY II to benefit states like Haryana, Punjab, Andhra Pradesh, Karnataka

Rs 14800 cr for JNNURM

Foodgrains production will be 250 mn tonne

Earned Rs 138403 cr due to agri exports

Rs 27049 cr for agri ministry

New scheme for rural road development

Rs 500 cr for crop diversification

The avg growth of agri was 3.6%

Agriculture to get over Rs 3000 cr

Green Revolution in eastern India has been a remarkable success – Rs 1000 cr to these states

Original Green Revolution states to get Rs 500 cr for crop diversification

Watershed management to get Rs 5387 cr

Rs 7 lakh agri credit target

National Institute for Biotech in Raipur, Chhattisgarh

National Livestock Mission to be launched in 2014 for which Rs 307 cr allocated

National biotech centre at Ranchi

National food security bill gets Rs 10000 cr towards incremental cost

Rs 50 cr for FPOs

Equity grants of Rs 10 lak per FPO

Rs 1000 cr for eastern Indian states

Rs 55 lakh cr needed for infra including private funds

Infra Debt Funds will be encouraged; 4 already floated

Rs 25,000 cr raised by institutions as tax free bonds in 2012-13

WB help to be taken for NE states to be connected with Myanmar

Godowns to be constructed with help of panchayats

USD 1 trillion investment in infrastructure

47% of the cost will be shared by private sector

Infrastructure debt funds will be encouraged

4 IDFs have been registered with SEBI

To allow some institutions to raise money through tax free bonds to the total of Rs 50000 cr

Rs 5000 cr for construction of warehouses

Regulatory Authority to oversee road projects

Zero CD for semi conductors/ electronics

First time Rs 12 lakh income limit increased from Rs 10 lakh for MF s

Rajiv Gandhi Equity scheme raised Rs 2 lakh cr

Rs 5000 cr to NABARD to finance construction of warehouses, silos, cold storages

New regulatory authority for road sector

3000 km of road projects in some states will be awarded in first 6 months of 2013-14

Cabinet committee on investment to take up more projects

FM to approve Rs 50,000 cr tax-free bonds in FY14; moving on to infra, he says CCI is the answer to all policy hurdles

New instrument to save savings from inflation called as Inflation Index Bonds details of which will announced in due course

Seven new cities on Delhi-Mumbai corridor

New corridor is Bangalore-Mumbai industrial corridor

Two new ports – in Sagar in WB and one in AP

New outer harbour at Tuticorin through PPP

5 inland waterways have been declared as national waterways, one more announced in Assam

Natural gas pricing policy would be reviewed

5 MMTPA terminals will be fully operational

Non-tax benefits to be made available to MSMEs after they graduate to higher units

Textile tech upgradation to get Rs 2400 cr

Handloom workers to get working capital at concessional rates

SIDBI gets Rs 500 cr

Standing council of experts in ministry finance to analyse competitiveness of Indian financial sector

13 PSU banks to get Rs 14000 cr in 2013-14 as capital infusion

All cooperative banks to be brought under CBS

All PSU banks to have ATMS at their premises

India’s first women bank as a PSU bank with Rs 1000 cr as initial capital

New fund for urban housing to get Rs 2000 cr

All towns with a population of 10000 or more will have a branch of LIC and one general insurance company

Group insurance schemes to be available for teachers, nurses

RSBY to be extended to rickshaw, autorickshaw, sanitation and mine workers

Rs 50 cr for textile ministry for apparel park

Rs 6000 cr for Rural Housing Fund

SEBI Act amendment under consideration

Investor with stake less than 10% will be taken as FII; more than that it will be taken as FDI

New scheme to encourage waste to energy projects

Clean and green energy is a priority

KYC of banks sufficient for insurance

Debt segment to be set up in Exchange

Rs 800 cr for Ministry of Non Renewable Energy

Hope Insurance and Pension Bills are passed soon

Rs 6000cr for Rural Housing Fund

Banks can act as insurance brokers

Defense expenditure at Rs 2 lakh cr appx

Rs 6275 cr for science and tech ministry

Rs 5580 cr for dept for atomic energy

Rs 100 cr each to AMU, BHU, Tata Institute of Social Sciences Guwahati, INTACH

National Institute of Sports Coaching in Patiala

Rs 532 cr for post offices to undertake banking activities

Rs 5880 cr to DAE

Over 800 FM channels will be auctioned

Gadar memorial in San Francisco to be upgraded

Donations to academic institutions and R&D to be treated as CSR

Mutual Fund distributors can now become members of Stock Exchange

Nirbhaya Fund for women’s security at Rs 1000 cr

Insurance, Provident Funds can trade directly in debt segments of stock exchanges

– See more at: http://zeenews.india.com/business/budget-2013/union-budget-2013-highlights-no-revision-in-income-tax-slabs-surcharge-on-super-rich_71159.html#sthash.iXHlgZyE.dpuf

Source: Zee News

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