- 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
- 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
- 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.
– 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.