Key Proposals of Budget 2013

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HIGHLIGHS OF FINANCE BUDGET 2013

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Key Proposals of Budget 2013

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Fiscal deficit seen at 5.2 pct of GDP in 2012-13 Fiscal deficit seen at 4.8 pct of GDP in 2013-14 Faced with huge fiscal deficit, India had no choice but to rationalise expenditure Gross market borrowing seen at 6.29 trillion rupees in 2013-14 Net market borrowing seen at 4.84 trillion rupees in 2013-14 Short-term borrowing seen at 198.44 billion rupees in 2013-14 To buy back 500 billion rupees worth of bonds in 2013-14 Petroleum subsidy seen at 650 billion rupees in 2013-14 Revised petroleum subsidy for 2012-13 at 968.8 billion rupees Estimated 900 billion rupees spending on food subsidies in 2013-14 Revised food subsidies at 850 billion rupees in 2012-13 Revised 2012-13 fertiliser subsidy at 659.7 billion rupees India faces challenge of getting back to its potential growth rate of 8 pct India must unhesitatingly embrace growth as highest goal spending on food Total budget expenditure seen at 16.65 trillion rupees in 2013-14 India's 2013-14 plan expenditure seen at 5.55 trillion rupees Non-plan expenditure estimated at about 12 trillion rupees in 2013-14 Revised estimate for total expenditure is 14.3 trillion rupees in 2012-13, which is 96 pct of budget estimate Set aside 100 billion rupees towards subsidies in 2013-14
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Key Proposals of Budget 2013

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Expect 133 billion rupees through direct tax proposals in 2013-14 Expect 47 billion rupees through indirect tax proposals in 2013-14 Target 558.14 billion rupees from stake sales in state-run firms in 2013-14

DIRECT TAXES
1. INDIVIDUALS/FIRMS/AOPS/BOI No Change in Income slabs and rates A surcharge of 10 per cent on those who have a taxable income of more than Rs. 1 crore per annum A tax credit of Rs. 2,000 to every person with an income of up to Rs. 5 lakh per annum First home loan up to Rs. 25 Lakhs, will get an additional deduction of Rs. 1 Lakh. 100% deduction on donation to National Childrens fund. 2. BUSINESS AND CORPORATE SECTOR

To Increase surcharge of 10 % on Domestic Companies exceeding Taxable Income Rs. 10 Cr. To Increase surcharge of 5% on Foreign Companies exceeding Taxable Income of Rs. 10 Cr. To continue 15% concession on dividend received by Indian companies from foreign units for one year Proposes to impose withholding tax @20% on profit distribution to shareholders.
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Key Proposals of Budget 2013

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3. CAPITAL GAINS RELATE

Proposes to reduce STT on Equity futures from 0.017% to0.01% Proposes to reduce STT on Equity oriented mutual fund from 0.25% to 0.001% Proposes to reduce STT on Equity oriented fund entered into in a recognised stock exchange from 0.1% to 0.001%

4. OTHER MATTERS Immovable property received for inadequate consideration is also taxable under other sources. TDS on transfer of immovable properties other than agricultural land for consideration more than Rs. 50 Lakhs. Return of Income filed without payment of self- assessment tax to be treated as defective returns

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Key Proposals of Budget 2013

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5. INCENTIVES Foreign investments must be encouraged. Inflation indexed bonds and NSCs to be introduced Incentive for acquisition and installation of new plant and machinery more than Rs.100 Crs. by manufacturing company Extension of sunset date for the power sector for one more year Tax free bonds issue to be allowed up to Rs 50,000 crore in 2013-14

6. INFRASTRUCTURE AND DEVELOPMENT

300 Kms of road projects in 2013-14 in various states in Gujarat, Maharastra, Rajasthan, and Andhra Pradesh. Two new major ports to be set up in West Bengal and Andhra Pradesh. Delhi-Mumbai Industrial Corridor- 2 Smart Industrial Cities in Gujarat and Maharashtra to start Chennai-Bengaluru industrial corridor announced Transmission Project from Srinagar to Leh New regulatory authority for road sector

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Key Proposals of Budget 2013

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7. BANKING AND FINANCIAL SECTOR

Rs.1400 Cr additional capital in 13 Public sector Women Bank Announced Employees women, Serves women- Indias First Public Sector Bank for women with Rs.1000 Crs

Rs 80,194 crore allocation for Ministry of Rural Development in 2013-14. About Rs33,000 crore for MGNREGA.

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Key Proposals of Budget 2013

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INDIRECT TAXES
Full exemption from excise duty is being provided on Tapioca sago (sabudana) and tapioca starch manufactured and consumed captively in the manufacture of tapioca sago. Henna powder or paste, not mixed with any other ingredient. ships and other vessels. Handmade carpets and carpets and other textile floor coverings of coir or jute, whether or not handmade. Excise duty on mobile phones of retail sale price exceeding Rs 2000/- is being increased from 1% to 6% Excise duty on cigarettes is being increased by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm. Excise duty on marble tiles and slabs is being increased from Rs 30 per sq. mtr to Rs 60 per sq. mtr. Excise duty of 4% is being levied on silver manufactured from zinc/lead smelting. Zero custom duty for electrical machinery for semiconductor units Raise the duty free allowance in respect of jewellery for an Indian passenger who has been residing abroad for over one year or a person who is transferring his residence to India from Rs.10,000 to Rs.50,000 in case of a gentleman passenger and from Rs.20,000 to Rs.1,00,000 in case of a lady passenger.
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Key Proposals of Budget 2013

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Raise the duty free allowance for crew member to vessel/aircraft from Rs.600 to Rs.1500. Basic customs duty on new passenger cars and other motor vehicles (high end cars) with CIF value more than US$ 40,000 and/or engine capacity exceeding 3000cc for petrol run vehicles and exceeding 2500 cc for diesel run vehicles is being increased from 75% to 100%. Basic customs duty on motor cycle with engine capacity of 800cc or more is being increased from 60% to 75%. Basic customs duty is being reduced from 10% to 2% on pre-forms of precious and semi-precious stones. Basic customs duty on Set Top Boxes for TV is being increased from 5% to 10%. Basic customs duty on raw silk (not thrown), of all grades is being increased from 5% to 15%. Basic customs duty is being reduced from 7.5% to 5% on textile machinery & parts. Basic Customs Duty on yachts and motor boats is being increased from 10% to 25% Basic customs duty on bituminous coal is being reduced from 5% to 2% and CVD from 6% to 2%. Basic customs duty is being reduced from 7.5% to 5% on 20 specified machinery for use in leather and footwear industry To exempt vocational Courses and testing services from service tax list. To reduce abatement taxes on luxury apartments. Retrospective exemption is being extended to the Indian Railways on the service tax.
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Key Proposals of Budget 2013

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Rationalization of exemption limit prescribed for charitable organizations, providing service towards any other object of general public utility. With effect from 1st April, 2013, service tax will be leviable on taxable service provided in restaurants with air-conditioning or central air heating in any part of the establishment at any time during the year. Rationalization of exemption to transport of goods by road and rail/vessel. It is proposed to provide one time amenity by way of (i) Waiver of interest and penalty; and (ii) Immunity from prosecution, to the stop filers, non-filers or non-registrants or service providers who have not disclosed true liability in the returns filed by them during the period from October 2007 to December 2012. The following exemptions are being withdrawn: Services provided by an educational institution by way of renting of immovable property. Exemption will be restricted to exhibition of cinematograph films in a cinema hall or a cinema theatre. Services by way of vehicle parking to general public. Services provided to Government, a local authority or a governmental authority, by way of repair or maintenance of aircraft

The difference between death and taxes is death doesn't get worse every time Parliament meets.

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