28/02/2013
key points that were highlighted by Mr. P. 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
- 5 to 10 per cent surcharge on domestic companies whose taxable income exceeds Rs 10 crore.
- Surcharge of 10 per cent for individuals whose taxable income is over Rs 1 crore.
- Education cess to continue at 3 per cent.
- Commodities transaction tax (CTT) levied on non-agriculture commodities futures contracts at 0.01 per cent.
- 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- Import duty on rice bran oilcake withdrawn.
- 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.
- Specific excise duty on ci******es and ci**rs 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.
- Duty on mobiles above Rs 2,000 raised from one to six percent, based on their maximum retail prices. Smart phones to get costlier
- Service tax to be levied on all AC 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.
- 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 liberalized.
- 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.
- Rs 532 crore to make post offices part of core banking.
- 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.
- 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.
- A company investing Rs 100 crore or more in plant and machinery in April 1, 2013 to March 31, 2015will be allowed 15 per cent investment deduction allowance apart from depreciation.
- Rajiv Gandhi Equity Scheme will be liberalized 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 u/s 80L over and above of Rs. 1.50 lac
- Govt. to set up India's first women's bank as a public sector bank by October.
- Rs 14,000 crore capital infusion into public sector banks in 2013-14.
- Insurance companies will be empowered to open branches in Tier-II cities with approval of IRDA.
