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Budget 2013: No change in tax rates or slabs

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Budget 2013: No change in tax rates or slabs
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New Delhi: Walking the tight rope ahead of next year's elections, Finance Minister P Chidambaram Thursday offered minor sops to income tax payers but slapped a 10 per cent surcharge on 'super-rich' individuals and corporates, levied an inheritance tax and raised duties on mobile phones, cigarettes and luxury vehicles.

In his tax proposals in the Budget for 2013-14 to raise an additional Rs 18,000 crore, he gave a benefit of Rs 2,000 to individual tax payers with taxable income of up to Rs 5 lakh but made no change in either slabs or rates of personal income tax which will continue at 10, 20 and 30 per cent.

Aiming at higher growth rate for inclusive and sustainable development and revive manufacturing, Chidambaram hiked outlays for health, water and sanitation, SCs/STs and tribals and rural development.

Defence allocation has been increased to Rs 2,03,672 crore, including Rs 86,741 crore for capital expenditure.

First-time home buyers will get an additional deduction of interest of Rs 1 lakh for home loans above Rs 25 lakh and Rs 1.50 lakh for home loans up to Rs 25 lakh. This will be over and above the current Rs 1 lakh deduction allowed for self-occupation.

Implementing the much-talked about super-rich tax, Chidambaram proposed to levy a 10 per cent surcharge on income of Rs 1 crore and above and a 5 to 10 per cent surcharge on domestic corporates whose income exceeds Rs 10 crore a year.

In the case of foreign companies, who pay a higher rate of corporate tax, the surcharge will go up from 2 to 5 per cent. On dividend distribution tax, he proposed to raise current surcharge from 5 to 10 per cent.

Presenting his eighth budget, the first after coming back to Finance Ministry last year, Chidambaram imposed an inheritance tax of 1 per cent on transfer of immovable property of over Rs 50 lakh.

Continuing the education cess for all tax payers at 3 per cent, he promised that the new surcharges will be in force for just a year during 2013-14.

Highlights of budget for 2013-14 presented in the Lok Sabha Thursday by Finance Minister P. Chidambaram:

  • Average growth during UPA-1 was 8 percent; high growth not a novelty
  • Current account deficit a worry because of high oil and gold imports
  • Will need $75 billion to finance current account deficit
  • Need to encourage FDI in consonance with economic priorities
  • WPI inflation down to 7 percent; food inflation worrying.
  • Revised budget expenditure for 2012-13 at Rs.14 lakh 30,824 crore
  • Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at 5 lakh 55,224 crore
  • Rs.41,000 crore for Scheduled Caste plan
  • Rs.97,000 crore for women's development
  • Rs.110 crore for department of disabilities
  • Rs.37,330 crore for health ministry
  • Average growth during UPA-1 was 8 percent; high growth not a novelty
  • Current account deficit a worry because of high oil and gold imports
  • Will need $75 billion to finance current account deficit
  • Need to encourage FDI in consonance with economic priorities
  • WPI inflation down to 7 percent; food inflation worrying.
  • Human resource development ministry to get Rs.65,867 crore
  • Rs.13,250 crore allocated for midday meals scheme
  • Rs.17,700 crore allocated for Integrated Child Development Scheme
  • Drinking water and sanitation ministry allocated Rs.15,260 crore
  • Allocation of rural development ministry allocation raised by 46 percent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme
  • Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at 5 lakh 55,224 crore
  • Rs.41,000 crore for Scheduled Caste plan
  • Rs.97,000 crore for women's development
  • Rs.110 crore for department of disabilities
  • Rs.37,330 crore for health ministry
  • Average growth during UPA-1 was 8 percent; high growth not a novelty
  • Current account deficit a worry because of high oil and gold imports
  • Will need $75 billion to finance current account deficit
  • Need to encourage FDI in consonance with economic priorities
  • WPI inflation down to 7 percent; food inflation worrying.
  • Foodgrain production during 2013-13 estimated at 250 million tonnes
  • Rs.500 crore allocated for promoting crop diversification
  • Rs.200 crore allocated for promoting nutrient-rich crops
  • Rs.50 crore allocated for farmer-producer organistions
  • National Livestock Mission to be launched with allocation of Rs.307 crore
  • Hope parliament will pass food security bill; Rs.10,00 crore alloated for initial expenditure on implementation
  • Human resource development ministry to get Rs.65,867 crore
  • Rs.13,250 crore allocated for midday meals scheme
  • Rs.17,700 crore allocated for Integrated Child Development Scheme
  • Drinking water and sanitation ministry allocated Rs.15,260 crore
  • Allocation of rural development ministry allocation raised by 46 percent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme
  • Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at 5 lakh 55,224 crore
  • Rs.41,000 crore for Scheduled Caste plan
  • Rs.97,000 crore for women's development
  • Rs.110 crore for department of disabilities
  • Rs.37,330 crore for health ministry
  • Average growth during UPA-1 was 8 percent; high growth not a novelty
  • Current account deficit a worry because of high oil and gold imports
  • Will need $75 billion to finance current account deficit
  • Need to encourage FDI in consonance with economic priorities
  • WPI inflation down to 7 percent; food inflation worrying.
  • 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
  • To provide appropriate incentives for semiconductors industry including zero customs duty on plants and machineries
  • 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
  • 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
  • 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
  • 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
  • KYC in banks sufficient for acquiring insurance policy
  • 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
  • Small and medium companies to be allowed to listed on MSME exchange without making a public offer
  • 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
  • 'Nirbhaya Fund' of Rs 1,000 crore to empower women and provide safety in the wake of the Delhi gang-rape incident
  • 11 lakh beneficiaries have received benefit under Direct Benefit Transfer scheme
  • Plan expenditure pegged at Rs 555,322 crore
  • Non plan expenditure pegged at Rs 11,09,975 crore for 2013-14
  • 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
  • Surcharge of 10 per cent for individuals whose taxable income is over Rs 1 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
  • 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

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