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Highlights of Budget 2013

imagesHIGHLIGHTS FROM THE BUDGET SPEECH OF THE FM

  • 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 28.02.2013

  • 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
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Posted on March 5, 2013, in Articles, News and tagged , , . Bookmark the permalink. Leave a comment.

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