Feb 282013
 

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- Finance minister of India, P Chidambaram has started his budget speech for the year 2013 –14 in Lok Sabha.

- This is Chidambaram’s 8th budget speech.

- This is last union budget before elections.

-  There is need to encourage Foreign Investment in India.

- Current account deficit is a big concern.

- 17% hike in allocation to Education to promote youth skills for jobs.

-  Rs 33,000 Cr allocated to MNNREGS.

- Rs 27,049 Cr to Agricultural ministry.

- 4% farm loan scheme extended to private sector banks of India.

- Allocation of Rs 1000 Cr to eastern states for green revolution.

- Rs 250 Cr allocated for Food security mission.

- Infrastructure debt funds will be encouraged to raise investment in infrastructure sector.

- Plans to raise Rs 25,000 Cr by issuing tax-free bonds.

ALSO READ: Highlights Of Railway Budget 2013-14

highlights of union budget 2013-14

- RGESS to be liberalized for investors.

- Home Loans upto Rs 25,000 will get additional tax deduction of Rs 1 lakh on interest repayment to first time home owners.

- Rajiv Gandhi Equity Saving Scheme will allow investors to invest in mutual funds.

- Income limit for investment under RGESS raised from Rs 10 lakh p.a to Rs 12 lakh p.a.

- Inflation Indexed bonds to be announced in June 2013.

- Term loans at concessional rate of 6% for handloom sector.

- Allocated Rs 1000 Cr for India’s first women bank to be public bank.

- Insurance companies will be allowed to open there branch in tier 2 cities without IRDA prior approval.

- Rs 14000 Cr for Public sector banks recapitalization.

- Rs 200 Cr allocated to women’s welfare.

- Proposed to start a fund for urban housing.

- Rs 2000 Cr allocated for Urban Housing Fund.

- KYC of bank will be sufficient to buy insurance policy.

- SEBI to simplify KYC norms for foreign investors intends to invest in India.

- Foreign institutional investors to be allowed to participate in forex/ currency derivatives.

-  To differentiate between FII and FDIs, international best practices to be followed.

-  Pension Funds will also be allowed in invest in ETF’s.

- Insurance and pension companies can directly trade in debt exchange.

- All PSUs banks to have ATMs.

- 289 FM radio channels to be auctioned soon.

- Defense expenditure raised to Rs 2 lakh Crore.

-  Government to contribute Rs 1000 Cr to Nirbhaya Fund for women security.

TAX PROPOSALS In Union Budget 2013-14

Direct Taxes

- No change in income tax slabs.

- Income Tax Slab for FY 2013-14

-RATE MEN / WOMEN SENIOR CITIZENS
(60 Years And Above)
Very Senior Citizens
(80 Years And Above)
0% Upto 2 lakhs Upto 2.5 lakhs Upto 5 lakhs
10% 2 lakhs – 5 lakhs 2.5 lakhs-5 lakhs NIL
20% 5 lakhs – 10 lakhs 5 lakhs-10 lakhs 5 lakhs-10 lakhs
30% 10 lakhs – Above 10 lakhs – Above 10 lakhs-Above

 

- 5 to 10% surcharge on local companies with income above Rs 1 crore p.a for this year only.

- Education cess of 3% will be continued for the year 2013.

- Some relief to tax payers under 2 to 5 lakh income group.

- Tax credit of Rs 2,000 for income up to Rs 5 lakh.

- Propose to reduce STT rate on equity futures and mutual funds to 0.01% to 0.017%.

- 1% TDS to be applicable on immovable property deals above Rs 50 lakhs.

Indirect Taxes

- Increase in import duty on set top boxes.

- Excise duty on cigarettes hiked to 18%..

- Excise duty on SUV’s raised from 27% to 30%.

- Custom duty on imported motor vehicles hiked.

- High end mobile phones, cars will go costlier.

- No change in peak custom and excise duty.

- Service tax on all AC restaurant will make eating out costlier.

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