Highlights of Indian Union Budget
2013-2014
·
Tax credit of Rs. 2,000 for income upto Rs. 5 lakh
·
Surcharge of 10 per cent for taxable incomes above Rs. 1 crore, No
review of tax slabs
·
Excise duty on SUVs to be increased to 30 per cent from 27 per
cent, SUVs registered as taxis exempted
·
Commodities transaction tax levied on non—agriculture commodities
futures contracts at 0.01 per cent
·
Rs 532 crore to make post offices part of core banking
·
Direct Taxes Code (DTC) bill to be introduced in current
Parliament session
·
Duty-free limits raised to Rs 50000 for men and Rs 1 lakh for
women
·
18% rise in excise duty on Cigarattes, cigars and cheerots
·
Service tax on all A/C restaurants
·
Royalty tax hiked from 10% to 25%
·
Tax Deducted at Source to be fixed at 1% on land deals over Rs 50
lakh
·
No change in peak custom, excise rates.
·
5 to 10 per cent surcharge on domestic companies whose taxable
income exceeds Rs 10 crore
·
11 lakh beneficiaries have received benefit under Direct Benefit
Transfer scheme. Direct Benefit Transfer (DBT) Scheme to be rolled out
throughout the country during the term of UPA Government.
·
Modified GAAR norms to be introduced from April 1, 2016.
·
Administration reform commission proposed
·
Rs 5,87,082 crore to be transferred to states under share of taxes
and non plan grants in 2013—14
·
"To the women of India - we have a collective responsibility
to ensure the dignity and safety of women. Recent incidents have cast a long
dark shadow on our credentials. As more women enter public spaces...there are
more reports of violence against them. We stand in solidarity with our girl
children. We pledge to everything possible to keep them swcure. A number of
measures are in the works and they will be taken up Government and
Non-government sources…I will set up a fund of Rs 1000 crore to achieve this
end. Minstry of Women will come up with a plan on how to use these funds."
·
Rs. 1,000 crore each for women, youth funds
·
Rs. 1,000 crore for Nirbhaya fund
·
Promise to women, youth and senior citizens
·
289 more cities to get private radio FM stations
·
Grant of Rs 100 crore each to AMU (Aligarh), BHU (Varanasi) and
TISS (Guwahati) and INTACH
·
"Rs 6275 crore to Ministry of Technology, Rs 5216 crore to
Department of Space, Rs 5280 crore to Department of Energy. These amounts are
substantial increases."
·
Rs. 2 trillion for defence sector
·
First home loan from a bank or housing finance corporation upto
Rs. 25 lakh entitled to additional deduction of interest upto Rs. 1 lakh.
·
Proposal to launch Inflation Indexed Bonds or Inflation Indexed
National Security Certificates to protect savings from inflation.
·
On oil and gas exploration policy, the Budget proposes to move
from the present profit sharing mechanism to revenue sharing. Natural gas
pricing policy will be reviewed.
·
Insurance companies can now open branches in Tier 2 cities and
below without prior approval. All towns of India with a population of 10000 or
more will have an LIC branch and one other public sector insurance company.
·
Income limit for the tax-saving Rajiv Gandhi Equity Savings Scheme
is raised to Rs. 12 lakh from Rs. 10 lakh
·
All public-sector banks have assured the Finance Minister that
they will all have ATMs in their branch areas by 2014
·
India's first women's bank as a PSU proposed, Rs. 1,000 crore
working capital announced
·
India Infrastructure Finance Corporation (IIFC), in partnership
with ADB will help infrastructure companies to access bond market to tap long
term funds.
·
Regulatory authority to be set up for road sector
·
Four Infrastructure debt funds have been registered
·
Rs 7 lakh crore target fixed for agri credit for 2013—14 compared
to Rs 5.75 lakh crore in the current year.
·
Eastern Indian states to get Rs 1,000 crore allocation for
improving agricultural production.
·
Green revolution in east India significant. Rice output increased
in Assam, Odisha, Jharkhand and West Bengal;
·
Rs 500 crore allocated for programme on crop diversification
·
ICDS gets Rs. 17,700 crore.
·
Average annual growth rate of agriculture and allied services
estimated at 3.6 per cent in 2012—13 when 250 MT foodgrains was produced
·
Rs 27,049 crore allocation to the Agriculture Ministry in 2013—14
·
The target for farm credit for 2013-14 has been set at Rs.
7,00,000 crore against Rs. 5,75,000 crore during the current year.
·
Rs 14,873 crore for JNNURM for urban transportation in 2013—14
against Rs 7,880 crore in the current fiscal
·
Foodgrain production in 2012—13 will be over 250 million tons
·
Rs 15,260 crore to be allocated to Ministry of Drinking Water and
Sanitation.
·
Rs 80,194 crore allocation for Ministry of Rural Development in
2013—14. About Rs 33,000 crore for MGNREGA
·
Rs. 5,000 crore for NABARD for agri storage facilities
·
Godowns to be constructed with help of panchayats. Food grain
productions have been raised drastically and only increase with each year.
·
Rs 17,700 crore to be allocated for Integrated Child Development
Scheme (ICDS): FM.
·
“National Food security bill is a promise of the UPA government. I
hope the bill be passed as soon as possible. I have set apart Rs 10,000 crore
to the expected cost of the act.”
·
An Institute for agricultural biotechnology will be set up in
Ranchi, Jharkhand.
·
Rs 1069 crore allocated to Department of Aryush: FM
·
Rs 4,727 crore to be allocated for medical education and research.
Rs 1,069 crore to be given to Department of Ayush.
·
Medical colleges in six more AIIMS—like institutions to start
functioning this year; Rs 1650 crore allocated for the purpose.
·
Rs 37,330 crore allocated for Ministry of Health & Family
Welfare.
·
Rs 110 crore to be allocated to the department of disability
affairs, says FM.
·
Additional sum of Rs 200 crore to Women and Child Welfare Ministry
to address issues of vulnerable women.
·
Rs 3511 crore allocated to Minority Affairs Ministry which is 60
per cent of the revised estimates.
·
Rs 13215 crore for mid-day meal programme: Chidambaram
·
The idea of setting up a PNGSY-2 causes uproar in the Parliament.
The minister is interrupted the round of shouting, who clarifies that states
that have completed PNGSY -1 will get the second version, the rest will
continue under the first version
·
The Right to Education Act is firmly in place, says Chidambaram,
while announcing Rs. 27,250 crore to Sarva Shikhsa Abhiyaan in FY14.
·
The Human Resources Development ministry meanwhile gets Rs. 65,867
crore, a rise of 17% from revised estimates.
·
"Government committed to reconstruction of Nalanda
University" - But no specific funds for the project was announced.
·
Chidambaram announces additional fund allocation of Rs 200 crore
to the Women and Child Development Ministry. He says women 'belonging to the
most vulnerable groups must be able to live with self-esteem and dignity'.
·
169 crore given for development of Ayurveda, Siddha, Unani
(Natural medicine) and homeopathy
·
Rs 41,561 crore for SC plan and Rs 24,598 crore for tribal plan.
The move comes with a strong statement
·
Plan Expenditure placed at Rs. 5,55,322 crore. It is 33.3 percent
of the total expenditure while Non Plan Expenditure is estimated at Rs.
11,09,975 crore. The plan expenditure in 2013-14 will be 29.4 percent more than
the RE of the year 2012-13.
·
Fiscal Deficit for 2013-14 is pegged at 4.8 percent of GDP. The
Revenue Deficit will be 3.3 percent for the same period.
·
On oil and gas exploration policy, the Budget proposes to move
from the present profit sharing mechanism to revenue sharing. Natural gas
pricing policy will be reviewed.
·
On coal, the Budget proposes adoption of a policy of pooled
pricing.
·
Benefits or preferences enjoyed by MSME to continue upto three
years after they grow out of this category.
·
Refinancing capacity of SIDBI raised to Rs. 10,000 crore.
·
Technology Upgradation Fund Scheme (TUFS) for textile to continue
in 12th Plan with an investment target of Rs. 1,51,000 crore.
·
Rs. 14,000 crore will be provided to public sector banks for
capital infusion in 2013-14.
·
A grant of Rs. 100 crore each has been made to 4 institutions of
excellence including Aligarh Muslim University, Banaras Hindu University, Tata
Institute of Social Sciences, Guwahati and Indian National Trust for Art and
Cultural Heritage (INTACH).
·
A surcharge of 10 pe rcent on persons (other than companies) whose
taxable income exceeds Rs.1 crore have been levied.
·
Generation based incentives to wind energy projects reintroduced,
Rs 800 crore provided for the purpose to Ministry of New & Renewable Energy
·
Rs 14,000 crore capital infusion into public sector banks in
2013—14
·
Standing Council of Experts in Ministry of Finance to examine
transaction cost of doing business in India
·
Financial Sector Legislative Reforms Commission (FSLRC) to submit
its report next month
·
Incubators set up by companies in academic institutions will
qualify for Corporate Social Responsibility (CSR) activities
·
Rs 500 crore would be allocated for addressing environmental
issues faced by textile industry
·
Concessional six per cent interest on loans to weavers.
·
SEBI will simplify procedures for entry of foreign portfolio
investors
·
SIDBI’s re—financing facility to MSMEs to be doubled to Rs 10,000
crore
·
5 million tons Dabhol LNG import terminal to be operated at full
capacity in 2013—14
·
Coal imports during Apr—Dec 2012 crossed 100 million tonnes and
expected to go up to 185 million tonnes in 2016—17,
·
Government will provide Rs 14000-crore capital infusion in
state-run (public-sector) banks in 2013/14
·
Oil and gas exploration policy will be reviewed and moved from
profit sharing to revenue sharing
·
Policy on exploration of shale gas on the anvil; natural gas
pricing policy will be reviewed and uncertainty removed
·
Rs. 9,000 crore earmarked as the first installment of balance of
CST compensations to different States/UTs.
·
Govt to construct power transmission system from Srinagar to Leh
at the cost of Rs 1,840 crore, Rs 226 crore provided
·
Rs 2400 crore for textile technology upgradation
·
Two new ports in West Bengal and Andhra Pradesh
·
Many manufacturing projects stalled due to regulatory process
·
A company investing Rs 100 crore or more in plant and machinery in
April 1, 2013 to March 31, 2015 will be allowed 15 per cent investment
deduction allowance apart from depreciation
·
To provide appropriate incentives for semiconductors industry
including zero customs duty on plants and machineries.
·
Fresh push for Bangalore-Chennai industrial corridor. Minister
says the corridor to be developed in co-operation with the Japanese.
·
DIPP and Japan’s JICA preparing plan for Chennai— Bengaluru Industrial
corridor
·
Power sector gets a nod - States encouraged to restructure
financial systems to improve sector as a whole and sign MoUs for the same
effect.
·
Rs 25,000 cr to be raised through tax free bonds: Chidambaram
·
"Doing business in India must be seen as easy, friendly and
mutually beneficial" - Second reference to increasing FDI in India.
Government seems to betting heavily on a large FDI influx to help with the
deficient
·
"We will use innovative and new financial methods to increase
investment in infrastructure," says the Minister.
·
New steps have been announced to increase availability and amount
of debts available for infrastructure projects.
·
The revised expenditure target is Rs 14,30,825 crore or 96 per
cent of Budget estimate for this fiscal. In 2013—14, the budget estimate is Rs
16,65,297 crore.
·
Budget expenditure is Rs 16,65,297 crore and Plan expenditure Rs
5,55, 322 crore: FM.
·
Plan expenditure in 12th Five Year Plan revised to Rs 14,30,825
crore or 96 per cent of budgeted expenditure
·
We have brought down headline WPI inflation to 7 per cent and core
inflation to 4.2 per cent. Food inflation is worrying: FM.
·
24.3 % hike in expenditure for health care both rural and urban
health mission.
·
12.5 % hike in Scheduled caste and Scheduled tribe sub-plans
·
Overarching goal to create opportunities for youth to acquire
skills for self-employment
·
All flagship programmes adequately funded. Ministries must take it
forward.
·
Average economic growth rate in 11th Plan period is 8 per cent,
highest ever in any Plan period.
·
Battle against inflation must be fought on all counts.
·
Foreign investment is imperative
·
Current account definict high due to dependence on oil , high gold
imports
·
Need $75billion to bridge CAD
·
Present economic space is constrained by economic climate and
tight monetary policy
FISCAL DEFICIT
* Fiscal deficit seen at 5.2 point of GDP in 2012/13
* Fiscal deficit seen at 4.8 point of GDP in
2013/14
* Faced with huge fiscal deficit, India had no choice but to
rationalize expenditure
BORROWING
* Gross market borrowing seen at 6.29 trillion
rupees 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
SUBSIDIES
* 2013/14 major subsidies bill estimated at 2.48
trillion rupees from 1.82 trillion rupees
* 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
GROWTH
* India faces challenge of getting back to its potential growth rate
of 8 point
* India must unhesitatingly embrace growth as
highest goal
SPENDING
* Total budget expenditure seen at 16.65
trillion rupees in 2013/14
* Non-plan expenditure estimated at about 11.1
trillion rupees in 2013/14
* India's 2013/14 plan expenditure seen at 5.55
trillion rupees
* Revised estimate for total expenditure is 14.3
trillion rupees in 2012/13, which is 96 point of budget estimate
* Set aside 100 billion rupees towards spending
on food subsidies in 2013/14
REVENUE
* 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
* Expect revenue of 408.5 bln rupees from
airwave surcharges, auction of telecom spectrum, licence fees in 2013/14
CURRENT ACCOUNT DEFICIT
* India's greater worry is the current account
deficit - will need more than $75 billion this year and next year to fund
deficit
INFLATION
* Food inflation is worrying, will take all
steps to augment supply side
TAX
* Proposes surcharge of 10 point on rich taxpayers with annual
income of more than 10 million rupees a year
* To increase surcharge to 10 point on domestic
companies with annual income of more than 100 million rupees
* For foreign companies, who pay the higher rate
of corporate tax, the surcharge will increase from 2 pct to 5 per cent.
* To continue 15 point tax concession on
dividend received by India companies from foreign units for one more year
* Propose to impose withholding tax of 20 point
on profit distribution to shareholders
* Amnesty on service tax non-compliance from
2007
* 10 billion rupees for first installment of
balance of GST (Goods and Services Tax) payment
* Propose to reduce securities transaction tax
on equity futures to 0.01 point from 0.017 point
* Time to introduce commodities transaction tax
(CTT)
* CTT on non-agriculture futures contracts at
0.01 point
CORPORATE SECTOR AND MARKETS
* To issue inflation-indexed bonds
* Proposes capital allowance of 15 point to
companies on investments of more than 1 billion rupees
* Foreign institutional investors (FIIs) can use
investments in corporate, government bonds as collateral to meet margin
requirements
* Insurance, provident funds can trade directly
in debt segments of stock exchanges
* FIIs can hedge forex exposure through
exchange-traded derivatives
* Investor with less than 10 point stake in a
company will be regarded as FII, more than 10 point stake as FDI (foreign
direct investment)
* Stock exchange regulator will simplify know-your-customer norms
for foreign portfolio investors
* To implement quickly recommendations of
financial sector legislative reforms commission
* To cut factory gate duty on trucks to 13 pct
from 14 pct
POWER AND ENERGY SECTOR
* Zero customs duty for electrical plants and
machinery
* Move to revenue-sharing from profit-sharing
policy in oil and gas sector
* To equalise duties on steam and bituminous
coal to 2 point customs duty and 2 point cvd (countervailing duty)
FOREIGN TRADE
* To cut duty on exports of precious and
semi-precious stones to 2 point from 10 point
* No duty on import of ships, vessels
BANKING
* To provide 140 billion rupees capital infusion
in state-run banks in 2013/14
DEFENCE
* To allocate 2.03 trillion rupees to defence in 2013/14
AGRICULTURE
* To allocate 801.94 billion rupees to rural
development in 2013/14
* Plan to allocate 270.49 billion rupees for agriculture in 2013/14
Budget Highlights by moneycontrol.com
The Union finance minister
presented the Budget for the year
2013-14. Some of the key points that were highlighted by Chidambaram in the
Budget are:
- No change in slabs and rate for personal income tax.
- Tax
credit of Rs 2000 to be provided to every person to having income of up to Rs 5
lakh, this will benefit 1.8 crore people.
- 5 to 10
per cent surcharge on domestic companies whose taxable income exceeds Rs 10
crore.
-
Commodities transaction tax levied on non-agriculture commodities futures
contracts at 0.01 per cent.
-
Modified GAAR norms to be introduced from April 1, 2016.
- No
change in peak rate of customs duty for non-agriculture products.
- Direct
Taxes Code (DTC) bill to be introduced in current Parliament session.
- No
change in basic customs duty rate of ten per cent and
service tax rate of 12 per cent.
- Import
duty on rice bran oilcake withdrawn.
- Series
of concessions granted to Maintenance, Repair and Overhaul (MRO) business in
the aviation sector.
- Import
duty raised on set-top boxes from 5 to 10 per cent to safeguard interest of
domestic producers.
- 10 per
cent customs duty to be levied on unprocessed illuminate.
- Import
duty raised from 75 to 100 per cent on luxury vehicles.
- Duty
free limit on gold raised to Rs 50,000 in case of male
and Rs 100,000 in case of female.
- No
countervailing duty on ships and vessels.
-
Specific excise duty on cigarettes and cigars raised by 18 per cent.
- Excise
duty on SUVs to be increased to 30 per cent from 27 per cent, SUVs registered
as taxis exempted.
-
Vocational courses offered by state-affiliated institutes to be exempted from
services tax.
- Duty on
mobiles above Rs 2,000 raised from one to six per
cent, based on their maximum retail prices.
- Service
tax to be levied on all a/c restaurants.
- One
time voluntary compliance scheme for service tax defaulters to be introduced.
Interest and penalties to be waived.
- Direct
tax proposals to yield Rs 13,300 crore, indirect tax proposal to give Rs 4,700
crore.
-
Education cess to continue at 3 per cent.
-
Contributions made to central and state government health scheme eligible to
tax benefit.
-
Eligibility conditions for life insurance policies of persons suffering
disabilities to be liberalised.
-
Investor Protection Fund set up by depositories will be exempt from tax.
-
Transactions on immovable properties usually undervalued.
- TDS of
one per cent on value of properties above Rs 50 lakh. Agriculture land
exempted.
-
Securities Transaction Tax (STT) reduced on equity future, mutual fund.
- Fiscal
deficit will be 5.2 per cent in current year and 4.8 per cent in the next
fiscal.
- Will
redeem our pledge to reduce fiscal deficit to 3 per cent by 2016-17 and revenue
deficit to 1.5 per cent of GDP.
- Tax
Administration Reform Commission to be set up to regularly review tax law
applications.
- In
2011-12, tax-GDP ratio was 5.5 per cent for direct taxes and 4.6 per cent for indirect
taxes.
-
Surcharge of 10 per cent for individuals whose taxable income is over Rs 1
crore.
- Plan
expenditure pegged at Rs 555,322 crore.
- Non
plan expenditure pegged at Rs 11,09,975 crore for 2013-14.
- Low
interest rate funds to be provided from Clean Energy Fund for green projects
for a period of five years.
-
Generation-based incentives to wind energy projects reintroduced, Rs 800 crore
provided for the purpose to Ministry of New & Renewable Energy.
-
Constraints will not come in the way for providing additional funds for
security of the nation.
- Rs
2,03,672 crore, including Rs 86,741 crore capital expenditure to Defence in
2013-14.
- Grant
of Rs 100 crore each to AMU (Aligarh), BHU (Varanasi) and TISS (Guwahati) and
INTACH.
-
National Institute for Sports to train coaches to be set up at Patiala at a
cost of Rs 250 crore.
- Rs 532
crore to make post offices part of core banking.
- Rs
5,87,082 crore to be transferred to states under share of taxes and non plan
grants in 2013-14.
- Comprehensive
social security package being evolved by convergence of several schemes run by
various ministries.
-
Investor with stake of 10 per cent or less will be treated as FII; any stake
more than 10 per cent will be treated as FDI.
- FIIs
will be allowed to participate in exchange traded currency derivatives.
- We will
evolve schemes for cities to take up waste to energy projects.
- Small
and medium companies to be allowed to listed on MSME exchange without making a
public offer.
-
Concessional six per cent interest on loans to weavers.
-
Financial Sector Legislative Reforms Commission (FSLRC) to submit its report
next month.
- Govt to
construct power transmission system from Srinagar to Leh at the cost of Rs
1,840 crore, Rs 226 crore provided in current Budget.
- Faced
with huge fiscal deficit, I have no choice but to rationalise expenditure
- We have
brought down headline WPI inflation to 7 per cent and core inflation to 4.2 per
cent. Food inflation is worrying
- Plan
expenditure in 12th Five Year Plan revised to Rs 14,30,825 crore or 96 per cent
of budgeted expenditure.
- Budget
expenditure is Rs 16,65,297 crore and Plan expenditure Rs 5,55, 322 crore
- The
revised expenditure target is Rs 14,30,825 crore or 96 per cent of Budget
estimate for this fiscal. In 2013-14, the budget estimate is Rs 16,65,297
crore.
- One
overarching goal to provide education and skills to youth for securing jobs in
the 2013-14.
- FM
allocates Rs 41,561 crore for SC sub-plan; Rs 24,598 crore for tribal sub plan.
-
Additional sum of Rs 200 crore to Women and Child Welfare Ministry to address
issues of vulnerable women.
- Rs 3511
crore allocated to Minority Affairs Ministry which is 60 per cent of the
revised estimates.
- CFM
allocates Rs 41,561 crore for SC sub-plan; Rs 24,598 crore for tribal sub plan.
- Rs 3511
crore allocated to Minority Affairs Ministry which is 60 per cent of the
revised estimates.
- Rs 110
crore to be allocated to the department of disability affairs.
- Rs
37,330 crore allocated for Ministry of Health & Family Welfare.
- Rs 1069 crore allocated to Department of Aryush.
- Rs 4,727 crore to be allocated for medical education and research. Rs 1,069
crore to be given to Department of Ayush.
- In the Budget Rs 65,867 crore allocated to Ministry of HRD in 2013-14.
- Medical colleges in six more AIIMS-like institutions to start functioning
this year; Rs 1650 crore allocated for the purpose.
- Rs 5,284 crore to various Ministries for scholarships for
SC/ST, OBC and minority students.
- Rs 13,215 crore to be provided for mid-day meal scheme.
- Rs 17,700 crore provided for Integrated Child Development Scheme.
- Rs
15,260 crore to be allocated to Ministry of Drinking Water and Sanitation.
- Rs
17,700 crore to be allocated for Integrated Child Development Scheme (ICDS.
- Rs
80,194 crore allocation for Ministry of Rural Development in 2013-14. About Rs
33,000 crore for MGNREGA.
- Rs
80,194 crore allocated for rural development schemes.
- States
which have completed Pradhan Mantri Gramin Sadak Yojana will be eligible for
PMGSY-II, others will continue with PMGSY-I.
- Rs
14,873 crore for JNNURM for urban transportation in 2013-14 against Rs 7,880
crore in the current fiscal.
-
Foodgrain production in 2012-13 will be over 250 million Tons.
- Average
annual growth rate of agriculture and allied services estimated at 3.6 per cent
in 2012-13 when 250 MT foodgrains was produced
- Rs
27,049 crore allocation to the Agriculture Ministry in 2013-14
- Rs 7
lakh crore target fixed for agriculture credit for 2013-14 compared to Rs 5.75
lakh crore in the current year.
- Eastern
Indian states to get Rs 1,000 crore allocation for improving agricultural
production.
- Additional sum of Rs 200 crore to Women and Child Welfare Ministry to address
issues of vulnerable women.
- Green
revolution in east India significant. Rice output increased in Assam, Odisha,
Jharkhand and West Bengal; Rs 1,000 crore allocated for eastern states.
- Rs
5,387 crore to be allocated for integrated watershed programme for farmers in
2013-14, an increase from Rs 3,050 crore in the current fiscal.
- Indian
Institute of Biotechnology will be set up at Ranchi.
- Rs
10,000 crore set aside for incremental cost for National Food Security Bill
over and above food subsidy.
- Four
Infrastructure debt fund have been registered.
- Tax free bonds issue to be allowed up to Rs 50,000 crore in 2013-14 strictly
on capacity to raise funds from the market.
- Rs
5,000 crore will be made available to NABARD to finance construction of godowns
and warehouses.
-
Government has decided to constitute a regulatory authority for the road
sector.
- Many manufacturing projects stalled due to regulatory process.
- A company investing Rs 100 crore or more in plant and machinery in April 1,
2013 to March 31, 2015 will be allowed 15 per cent investment deduction
allowance apart from depreciation.
- Rajiv
Gandhi Equity Scheme will be liberalised to allow first time investor to invest
in Mutal Fund and equity.
- First
housing loan up to Rs 25 lakh would get additional deduction of interest of up
to Rs 1 lakh in 2013-14.
- Govt to
construct power transmission system from Srinagar to Leh at the cost of Rs
1,840 crore, Rs 226 crore provided in current Budget.
- Current
account deficit continues to be high due to excessive dependence on oil, coal
and gold imports and slowdown in exports.
- India does not have choice between welcoming and spurning foreign investment;
it is an imperative.
- Battle
against inflation must be fought at all fronts.
- DIPP
and Japan's JICA preparing plan for Chennai-Bengaluru Industrial corridor.
- Two new
major ports to be set up in West Bengal and Andhra Pradesh
- Oil and gas exploration policy will be reviewed and moved from profit sharing
to revenue sharing.
- Policy
on exploration of shale gas on the anvil; natural gas pricing policy will be
reviewed and uncertainty removed.
- Govt to
set up India's first women's bank as a public sector bank by October.
- Coal imports during Apr-Dec 2012 crossed 100 million tonnes and expected to
go up to 185 million tonnes in 2016-17.
- 5
million tons Dabhol LNG import terminal to be operate at full capacity in
2013-14.
- FM asks
state governments to prepare financial restructuring plan for power
distribution companies at the earliest.
- SIDBI's
re-financing facility to MSMEs to be doubled to Rs 10,000 crore.
- Incubators set up by companies in academic institutions will qualify for
Corporate Social Responsibility (CSR) activities.
- Rs 500 crore would be allocated for addressing environmental issues faced by
textile industry.
- Concessional six per cent interest on loans to weavers.
- Financial Sector Legislative Reforms Commission (FSLRC)
to submit its report next month.
- Rajiv
Gandhi Equity Scheme will be liberalised to allow first time investor to invest
in Mutal Fund and equity.
- First
housing loan up to Rs 25 lakh would get additional deduction of interest of up
to Rs 1 lakh in 2013-14.
-
Standing Council of Experts in Ministry of Finance to examine transaction cost
of doing business in India.
- Rs
14,000 crore capital infusion into public sector banks in 2013-14.
- PSU banks to have ATMs at all their branches by March 31, 2014.
- Rs 6,000 crore to be allocated for rural housing fund in 2013-14.
- All Regional Rural Banks and cooperative banks to be e-linked by
this year-end.
-
Insurance companies will be empowered to open branches in Tier-II cities with
approval of IRDA.
- National Housing Bank (NHB) to set up urban housing bank fund and Rs 2,000
crore will be allocated in this regard.
- Public
sector general insurance companies to set up adalts to clear disputes related
to claims.
-
Rashtriya Swasthya Bima Yojana benefit will be extended to rickshaw pullers,
auto and taxi drivers and sanitation workers.
-
Comprehensive social security package being evolved by convergence of several
schemes run by various ministries.
-
Investor with stake of 10 per cent or less will be treated as FII; any stake
more than 10 per cent will be treated as FDI.
- FIIs
will be allowed to participate in exchange traded currency derivatives.
- We will evolve schemes for cities to take up waste to energy projects.
- Small and medium companies to be allowed to listed on MSME exchange without
making a public offer.
Tax
Highlights of Union Budget 2013-14
Finance Minister P Chidambaram has
proposed an additional tax for the 'super rich'. Following are the highlights
on how the Finance Minister has juggled with various taxes in his Union Budget
2013. - No change in income-tax slabs for personal income.
- A tax credit of Rs. 2,000 to every person with an income of up
to Rs. 5 lakh per annum.
- Proposal to incorporate GAAR recommendations To applicable from 1.04.16
- A surcharge of 10 per cent on those who have a taxable income of more
than Rs. 1 crore per annum.
- Indian company not liable to pay any dividend distribution tax for
distribution of income from a foreign subsidiary.
- Excise duty on non-taxi SUVs hiked to 30 per cent from 27 per cent
- Import duty on luxury two-wheelers hiked to 75 per cent from 60 per cent
- Import duty on luxury cars hiked to 100 per cent from 75 per cent
- Custom duty benefit on hybrid/electric cars extended up to March 2015
- Current surcharge for corporate taxes has been increased from 5 per cent to
10 per cent, but only for one year.
- Tax deducted at source (TDS) proposed on the value of an immovable property
as transaction on such properties are usually undervalued.
- TDS of 1 per cent on land deals worth over Rs. 50 lakh.
- Proposal to levy commodities transation tax (CTT) on non-agricultural
commodity derivatives at 0.01 per cent.
- Royalty and technical expertise tax increased from 10 per cent to 25 per
cent, where DTAA doesn't apply
- Houses above 2,000 sq ft or costing more than Rs. 1 crore will have
lower abatement of 70 per cent as against 75 per cent. This will impact cost of
houses by 0.6 per cent.
- Import duty on set-top boxes hiked from 5 pee cent to 10 per cent.
- 2 per cent customs duty imposed on coal imports.
- Securities Transaction Tax (STT) cut on equity futures to 1 bps from 1.7 bps