Thursday, February 28, 2013

Highlights of Union Budget 2013-14:

Miscellaneous

    For housing loans limit till Rs 25 lakh – additional Rs 1 lakh exemption for 2013-14 for first time loan takers

    Divestment target of Rs 40,000 crore

    Rs 50,000 cr tax free bonds to be allowed by select institutes

    Inflation indexed Bonds and NSCs to be issued

    SMEs to enjoy benefits for 3 years after they outgrow category

    Fiscal deficit contained at 5.2%; target set at 4.8%

    Direct benefit transfer scheme – 11 lakh have received benefits directly to bank accounts

    Revenue deficit estimated at 3.3%

    Seek same support of everybody to navigate the Indian economy through crisis

    Global economy has slowed from 3.9% to 3.2%

    Not unaffected what happens in the world

    Current year CSO has estimated growth at 5% and RBI at 5.5% - below India's potential growth rate of 8%

    No reason for gloom or pessimism

    Only China and Indonesia are growing faster than India

    In 2013-14 only China will grow faster than India

    Indian economy growing below potential of 8%

    Goal of higher growth leading to inclusive and sustainable growth

    Plurality and diversity lead to inequitable distribution which needs to be addressed

    Women, SCs/STs and other backwards need to be included

    Need to create economic space and achieve socio-economic objective

    New Fiscal Consolidation measures undertaken to achieve 5.3%

    Current Account Deficit major worry

    CAD due to higher coal, oil and gold imports

    We have to find 75 bn dollar to finance current account deficit

    No solution but FDI, FII, ECB to bridge CAD

    Achieving high growth is not a novelty and beyond our capacity

    Without growth there will be no development and inclusiveness

    UPA govt believes in inclusive development with emphasis on improving human development index

    At present economic space is constrained

    India doesn’t have the choice between welcoming and spurning foreign investment

    Development must be sustainable and must have democratic legitimacy

    The battle against inflation must be fought on all fronts

    Our battle has brought down headline inflation to 7% and core inflation to 4%

    Wisdom lies in finding current level of govt expenditure

    Faced with huge fiscal deficit no choice but rationalise expenditure

    We have retrieved some economic space

    Sufficient funds to each ministry and departments

    One overarching goal of the budget is to create opportunities for youth

    Estimated expenditure Rs 1490925 lakh cr; Revised Rs 1430825 lakh cr

    Planned expenditure will be 29.4% more than previous; all projects to be fully funded

    Onus on ministries to completely projects in timely manner

    Rs 41561 cr for SC sub plan

    Rs 24500 cr to ST sub plan

    The funds for sub plan cannot be diverted

    Rs 77236 cr for child budget

    Rs 200 cr for gender equality

    Maulana Azad education foundation corpus gets Rs 160 cr more

    Rs 110 cr for dept of disable welfare

    Rs 37330 cr to ministry of health and family welfare out of which new national health mission to get Rs 21239 cr

    Rs 4727 cr for medical education, training

    Rs 1069 cr to department of ayush

    Rs 1650 cr to AIIMS like institutions

    Rs 65867 cr to HRD ministry

    Rs 27258 cr for Sarva Siksha Abhiyan

    Rs 3983 cr for Rashtriya Madhyamik Shiksha Abhiyan

    Rs 13215 cr for mid-day meal scheme

    Rs 17700 cr for children care and education

    Rs 15260 cr for clean drinking water

    Rs 1400 cr for water purification/ clean arsenic

    Rs 80195 cr for MNREGA, Indira Awas Yojna, NREGS

    PMGSY II to benefit states like Haryana, Punjab, Andhra Pradesh, Karnataka

    Rs 14800 cr for JNNURM

    Foodgrains production will be 250 mn tonne

    Earned Rs 138403 cr due to agri exports

    Rs 27049 cr for agri ministry

    New scheme for rural road development

    Rs 500 cr for crop diversification

    The avg growth of agri was 3.6%

    Agriculture to get over Rs 3000 cr

    Green Revolution in eastern India has been a remarkable success – Rs 1000 cr to these states

    Original Green Revolution states to get Rs 500 cr for crop diversification

    Watershed management to get Rs 5387 cr

    Rs 7 lakh agri credit target

    National Institute of Biotic Stress Management for addressing plant protection at Raipur, Chhattisgarh

    National Livestock Mission to be launched in 2014 for which Rs 307 cr allocated

    National biotech centre at Ranchi

    National food security bill gets Rs 10000 cr towards incremental cost

    Rs 50 cr for FPOs

    Equity grants of Rs 10 lak per FPO

    Rs 1000 cr for eastern Indian states

    Rs 55 lakh cr needed for infra including private funds

    Infra Debt Funds will be encouraged; 4 already floated

    Rs 25,000 cr raised by institutions as tax free bonds in 2012-13

    WB help to be taken for NE states to be connected with Myanmar

    Godowns to be constructed with help of panchayats

    USD 1 trillion investment in infrastructure

    47% of the cost will be shared by private sector

    Infrastructure debt funds will be encouraged

    4 IDFs have been registered with SEBI

    To allow some institutions to raise money through tax free bonds to the total of Rs 50000 cr

    Rs 5000 cr for construction of warehouses

    Regulatory Authority to oversee road projects

    Zero CD for semi conductors/ electronics

    First time Rs 12 lakh income limit increased from Rs 10 lakh for MF s

    Rajiv Gandhi Equity scheme raised Rs 2 lakh cr

    Rs 5000 cr to NABARD to finance construction of warehouses, silos, cold storages

    New regulatory authority for road sector

    3000 km of road projects in some states will be awarded in first 6 months of 2013-14

    Cabinet committee on investment to take up more projects

    FM to approve Rs 50,000 cr tax-free bonds in FY14; moving on to infra, he says CCI is the answer to all policy hurdles

    New instrument to save savings from inflation called as Inflation Index Bonds details of which will announced in due course

    Seven new cities on Delhi-Mumbai corridor

    Chennai Bengaluru Industrial Corridor to be developed

    Preparatory work has started for Bengaluru Mumbai Industrial Corridor

    Two new ports - in Sagar in WB and one in AP

    New outer harbour at Tuticorin through PPP

    5 inland waterways have been declared as national waterways, one more announced in Assam

    Natural gas pricing policy would be reviewed

    5 MMTPA terminals will be fully operational

    Non-tax benefits to be made available to MSMEs after they graduate to higher units

    Textile tech upgradation to get Rs 2400 cr

    Handloom workers to get working capital at concessional rates

    SIDBI gets Rs 500 cr

    Standing council of experts in ministry finance to analyse competitiveness of Indian financial sector

    13 PSU banks to get Rs 14000 cr in 2013-14 as capital infusion

    All cooperative banks to be brought under CBS

    All PSU banks to have ATMS at their premises

    India’s first women bank as a PSU bank with Rs 1000 cr as initial capital

    New fund for urban housing to get Rs 2000 cr

    All towns with a population of 10000 or more will have a branch of LIC and one general insurance company

    Group insurance schemes to be available for teachers, nurses

    RSBY to be extended to rickshaw, autorickshaw, sanitation and mine workers

    Rs 50 cr for textile ministry for apparel park

    Rs 6000 cr for Rural Housing Fund

    SEBI Act amendment under consideration

    Investor with stake less than 10% will be taken as FII; more than that it will be taken as FDI

    New scheme to encourage waste to energy projects

    Clean and green energy is a priority

    KYC of banks sufficient for insurance

    Debt segment to be set up in Exchange

    Rs 800 cr for Ministry of Non Renewable Energy

    Hope Insurance and Pension Bills are passed soon

    Rs 6000cr for Rural Housing Fund

    Banks can act as insurance brokers

    Defense expenditure at Rs 2 lakh cr appx

    Rs 6275 cr for science and tech ministry

    Rs 5580 cr for dept for atomic energy

    Rs 100 cr each to AMU, BHU, Tata Institute of Social Sciences Guwahati, INTACH

    National Institute of Sports Coaching in Patiala

    Rs 532 cr for post offices to undertake banking activities

    Rs 5880 cr to DAE

    Over 800 FM channels will be auctioned

    Gadar memorial in San Francisco to be upgraded

    Donations to academic institutions and R&D to be treated as CSR

    Mutual Fund distributors can now become members of Stock Exchange

    Nirbhaya Fund for women’s security at Rs 1000 cr

    Insurance, Provident Funds can trade directly in debt segments of stock exchanges

  


 Personal Tax

    No changes in personal Income Tax slabs or rates

    Surcharge on super rich

    Surcharge of 10% for income of Rs 1 cr or more per annum for one year

    10% surcharge to be applicable for individuals, HUFs, firms and entities with similar tax status

    Surcharge increased from 5% to 10% on domestic companies whose taxable income exceeds Rs 10 crore per year

    1% TDS for property sale worth more than Rs 50 lakh; agri land exempt

    Tax credit of Rs 2000 on incomes between Rs2-5 lakh

    5.5% tax to GDP ratio for direct tax

    4.5% tax to GDP ratio for indirect tax

    Tax administration reform commission to be set up to strengthen the system

    Our tax to GDP ratio is very low

    Should reclaim 11.9% Tax-GDP ratio in short-term

    There are 42,800 persons in the country who admitted to a taxable income exceeding Rs 1 cr per year

    Donations to National Children's Fund will be eligible for 100% tax deduction

    Long-term infra bonds also eligible for tax deduction; additional Rs 1 lakh deduction for home loans

    TDS on value of immovable property as transaction on immovable properties are usually undervalued

    Extends tax cuts benefits to Rupee Infrastructure Funds

    Educational Cess to continue at 3 %

    Securitization Trust income to be exempt

    Tax on royalty and fees for technical services to NRIs increased from 10 percent to 25 percent.

    Permissible premium rate of life insurance policies increased from 10% to 15% for persons with disability and certain ailments

    Contributions to schemes of Central and state govts similar to Central Government Health Scheme, eligible for exemption under Section 80D of the Income Tax Act

    Corporate Tax

    CTT on non-commodities futures at 0.1%

    Surcharge on DDT doubled to 10%

    A final withholding tax at the rate of 20 percent on profits distributed by unlisted companies to shareholders through buyback of shares

    Indirect Taxes

    No change in peak rate for CD non-agri products

    Eco friendly concessions to be prolonged till 2015

    Leather and goods duty reduced to 5%

    Luxury cars import duty at 100%

    Yachts duty at 25%

    Luxury motorcycle duty at 75%

    No change in customs duty of 10%

    No change in excise duty or service tax

    Precious, semi-precious duty reduced

    Luxury motor vehicles to be taxed more

    Baggage rules to permit bringing jewellery duty free limit raised to Rs 50000 for males and Rs 1 lakh for females

    Tax on SUVs increased from 27% to 30%; taxis exempt

    Excise duty on set top box increased

    6% duty on mobiles costing more than Rs 2000

    Excise on service tax on all air-conditioned restaurants

    Handmade carpets exempt for excise duty

    Increase in excise duty on cigarettes by 18%

    Excise on readymade garments reduced

    Excise on Service Tax defaulters from 1-10-2007 can submit tax without being penalised or interest charged

    Advocates need for GST


  

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