India Union Budget 2013-14: Important Highlights
HIGHLIGHTS FROM THE BUDGET SPEECH OF THE FM AS ON 28.02.2013
- Global economy has slowed from 3.9% to 3.2%
- No solution but FDI, FII, ECB to bridge CAD
- National food security bill is a promise of the UPA: FM
- Invest allowance of 15% for investment in plant & machinery
- Infra debt funds are encouraged to promote investment in infrastructure: FM
- 4 IDF’s have been registered with SEBI, 2 will be launched soon: FM
- Some companies can issue tax free bonds up to Rs 50,000 cr for Infra: FM
- Expect to raise Rs 25,000 Cr via tax-free bonds in FY13: FM
- Home Loan up to 2500000/- taken after 01.04.2013 -2014 Additional Deduction of Rs.100000/- in account of Interest will be allowable.
- Home Loan up to 2500000/- taken after 01.04.2013 -2014 Additional Deduction of Rs.100000/- in account of Interest will be allowable.
- Rajiv Gandhi equity saving scheme to be liberalised: FM
- Income limit for RGESS raised to 12 lakh from Rs 10 lakh: FM
- CSR@2% shall be part of the Expenditure
- To increase refinancing of SIDBI to help MSME: FM
- Govt propose to setup a New Woman Bank as Public Sector bank
- To provide `1,000 cr initial capital to All-Women’s Bank: FM
- Insurance companies will be empowered to open branches in tier II cities without prior IRDA approval: FM
- SEBI to simply procedures for FIIs, unify categories of FIIs: FM
- Proposal to amend SEBI Act under consideration: FM
- 289 FM radio channels to be auctioned in FY14: FM
- 294 more cities to be connected by FM Radio: FM
- Govt to contribute 1000 cr for Nirbhaya fund: FM
Tax Proposals in Budget Speech 28.03.2013
- Dispute Resolution Method will be introduced for DT and IDT
- Minimum Exemption 2 to 2.20 Lacs
- Additional SC @10% whose taxable income exceed @1 Crore only for One Year Only called Super rich tax:
- Home Loan up to 2500000/- taken after 01.04.2013 -2014 .Additional Deduction of Rs.100000/- in account of Interest will be allowable.
- Eligibility conditions for disable person Insurance for 15% to 20%
- Tax credit of ‘2,000 for income up to ‘5 lakh:
- DDT Surcharge raised to 10% from 5%
- To continue with education cess at 3%
- 10% surcharge on companies with income over ’10 crore
- Tax holiday for power plants extended to March 2014
- Extend 80IA by 1 year
- TDS @1% on the Capital Gain transaction Over to Rs.50 lacs property.
- 15% tax on dividend from overseas arms to continue.
- DTC in progress , as per best international practice
- To reduce STT on equity futures, MF Units
- To introduce CTT on non agri futures contracts at 0.1%
- Agri commodities to be exempt from CTT
- 20% final withholding tax on unlisted companies
- Modified provisions under GAAR effective April 1, 2016
- To incorporate decisions on GAAR
CUSTOMS
- SED on cigarettes hiked by 18%
- Custom duty on imported motor vehicles hiked
- To up import duty on luxury cars to 100% from 75%
- Increase excise duty on SUV’s from 27% to 30%
SERVICE TAX
- No change in standard rate of excise duty, service tax.
- Vocational Courses New Services added to negative List become exempted.
- Film Industry get exemption for copy rights added to negative List become exempted.
- Voluntarily Declaration Scheme in Service tax as One-time Amnesty Scheme for service tax due from 2007.
- To reduce abatement rates for luxury apartments as reduced from 75% to 70 % in Residential Complex Services.
- To impose service tax on all AC restaurants
- For GST need to be pass by Constitutional Amendment. To present Draft Bill on GST in parliament in next few months.
More
Commodity Transaction Tax at 0.01 percent imposed w.e.f. 01-06-2013 on sale of commodity derivatives other than agricultural products. STT reduced in some cases.
FM Clarifies: ITD to accept Tax Residency Certificate as proof of residential status of contracting state. For Mauritius, Circular 789 of 13.04.2000 applicable.
W.e.f. 01/03/2013- New composition schemes A and B for civil contractors notified u/s 16(12) DVAT Act with various tax rates% (3and6; 1and3; 2and3) and certain general conditions.