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Highlights Of Union Budget 2013-14

– 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

(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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