HIGHLIGHTS FROM THE BUDGET SPEECH OF THE FM AS ON 28.02.2013
CUSTOMS
- 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
- 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.