highlights of budget 2013

7/28/2019 Highlights of Budget 2013

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Key Proposals of Budget2013

HIGHLIGHS OF FINANCE BUDGET 2013

SPC&ASSOCIATESChartered Accountants


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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 trillionrupees 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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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 anincome of up to Rs. 5 lakh per annum

First home loan up to Rs. 25 Lakhs, will get anadditional deduction of Rs. 1 Lakh.

100% deduction on donation to National Childrens fund.2. BUSINESS AND CORPORATE SECTOR

To Increase surcharge of 10 % on DomesticCompanies exceeding Taxable Income Rs. 10 Cr.

To Increase surcharge of 5% on ForeignCompanies exceeding Taxable Income of Rs. 10

Cr.

To continue 15% concession on dividendreceived by Indian companies from foreign units for one year

Proposes to impose withholding tax @20% on profit distribution toshareholders.


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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 fundfrom 0.25% to 0.001%

Proposes to reduce STT on Equity oriented fund enteredinto in a recognised stock exchange from 0.1% to 0.001%

4. OTHER MATTERS

Immovable property received for inadequate consideration is also taxableunder other sources.

TDS on transfer of immovable properties other than agricultural land forconsideration more than Rs. 50 Lakhs.

Return of Income filed without payment of self- assessment tax to betreated as defective returns


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5.

INCENTIVES

Foreign investments must be encouraged. Inflation indexed bonds and NSCs to be

introduced

Incentive for acquisition and installation ofnew plant and machinery more than Rs.100

Crs. by manufacturing company

Extension of sunset date for the power sectorfor 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 invarious states in Gujarat, Maharastra,Rajasthan, and Andhra Pradesh.

Two new major ports to be set up in WestBengal and Andhra Pradesh.

Delhi-Mumbai Industrial Corridor- 2Smart Industrial Cities in Gujarat and

Maharashtra to start

Chennai-Bengaluru industrial corridorannounced

Transmission Project from Srinagar to Leh New regulatory authority for road sector


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7.

BANKING AND FINANCIAL SECTOR

Rs.1400 Cr additional capital in 13 Publicsector

Women Bank Announced Employeeswomen, Serves women- Indias First

Public Sector Bank for women with

Rs.1000 Crs

Rs 80,194 crore allocation for Ministry ofRural Development in 2013-14. About

Rs33,000 crore for MGNREGA.


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INDIRECT TAXES

Full exemption from excise duty is beingprovided on

Tapioca sago (sabudana) and tapioca starchmanufactured 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 orjute, whether or not handmade.

Excise duty on mobile phones of retail sale price exceeding Rs 2000/- isbeing increased from 1% to 6%

Excise duty on cigarettes is being increased by about 18% on all cigarettesexcept 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/leadsmelting.

Zero custom duty for electrical machineryfor semiconductor units

Raise the duty free allowance in respect ofjewellery 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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Raise the duty free allowance for crew member to vessel/aircraft fromRs.600 to Rs.1500.

Basic customs duty on new passenger cars and other motor vehicles (highend 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 isbeing increased from 60% to 75%.

Basic customs duty is being reduced from 10% to 2% on pre-forms ofprecious and semi-precious stones.

Basic customs duty on Set Top Boxes for TV is being increased from 5% to10%.

Basic customs duty on raw silk (not thrown), of all grades is being increasedfrom 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% andCVD from 6% to 2%.

Basic customs duty is being reduced from 7.5% to 5% on 20 specifiedmachinery for use in leather and footwear industry

To exempt vocational Courses andtesting services from service tax list. To reduce abatement taxes on luxury

apartments.

Retrospective exemption is beingextended to the Indian Railways on the

service tax.


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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 taxableservice 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 ofimmovable property.

Exemption will be restricted to exhibition of cinematograph films in acinema 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.

-End of Document-

highlights of budget 2013

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