Welcome to CORPORATE GENIUS BLOG -"Experience the Power of Knowledge"

Subscribe for free updates

Thursday, February 28

A glance at Union Budget 2013-14

Finance Minister P.Chidambaram presented his budget speech today.

The key points are given below.

>no change in personal income tax rates/slab.

>Relief to tax payers of Rs. 2 lakh-5 lakh in the form of tax credit Rs. 2000/-.
> STT on equity futures reduced to 0.1 percent.
>excise duty hike.
>excise duty on cigarrettes raised to 18 %.
>excise duty on non-taxi SUVs raised to 30%.
>education cess will continue at 3%.
>service tax will be charged on a/c restaurants with sq.feet > 2000.
>(super rich) above Rs. 1 crore (other than cos) will be taxed a surcharge of 10% for 2013.
> (super rich) domestic cos will be charged surcharge  @ 10%  with above Rs. 10 crore taxable income. For foreign cos it will be 5 %
>silver to be charged at excise duty 4%.
>first time home loans upto Rs. 25 lakhs during FY 2013-14 will be allowed additional tax deduction of interest upto Rs. l lakh.
>Mobile phones at price above Rs. 2000/- would attract 6 % excise duty.
>TDS on immovable property transactions exceeding Rs. 50 lakh excluding agri land at 1 percent.
>Royalty tax will be 25%.
>import duty on set top boxes 10%.
>import duty on raw silk will be 15 %.
>Hikes in rural development funding Rs. 80194 crore.
>Agricultural credit target raised to Rs. 7 lakh crores.
>excise duty on handmade carpets and textile floorings  of coir and jute withdrawn
>basic customs duty on agri products will not change.
>Commodities Transaction Tax on future contracts on non-agri product 0.01 percent.
>Rajiv Gandhi Equity Savings Scheme to be liberilised and income limit raised to Rs. 12 lakhs.
>2 major ports to be st up in AP and West Bengal to deal with cargo traffic .
>introducing All-women Public Sector Bank for women , by women. Initial capital will be provided at Rs. 1000 crore.
>Duty on marble will be Rs.60 per sq.mt
>MRP based assessments for ayurvedic, unani, homeo, bio-chemic medicines. An abatement of 35 % will be provided on such branded medicaments.
>increased SIDBI Refinance spending to 10,000 crore.
>introduced one time waiver scheme called 'Voluntary Compliance Encouragement Scheme'  for persons defaulting servce tax, penalty etc since 1.10.2007

Total budget estimate for FY 2014 will be Rs.16.65 lakh crore. The FM shared importance of development of Women and Youth during his speech. He also underlined the need for increasing the tax GDP ratio and maintaining it at a higher level. 

While opening of the budget speech, markets became positive expecting positive reforms. While closing the speech the markets went down by about  57 points.

Most of the experts hope this budget would be good for capital markets and investments though there are no exciting proposals.

No comments: