UNION BUDGET 2013-14: HIGHLIGHTS..!

** Housing Loan deduction additional Rs. 1 lakh for loans up to Rs. 25 lakh for new houses after 01.04.2013

**Securities transaction(STT) tax reduced.

** Commodity transaction Tax (CTT) imposed.

** Rajiv Gandhi Equity Savings Scheme (RGESS)extended up to 3 year and limit extended for 12 lakh.

**Post office will be converted  in to Banks.

**  Rs. 50,000 cr Tax free bonds will be continued

** No change in Income Tax slabs or exemption limit

**10 % surcharge on Income above 1 crore

**  Education cess remains 3 %

** No change in service tax and excise duty.

** 15 % addition allowance for new investment in plants up to 100 cr

** Excise duty on cigrates increased to 18 %

** Excise duty on marbles increased

.** .Excise duty / import duty increased to 6 % from 1 % for mobile value more than Rs. 2000-.

** Service tax will be  applicable on all AC -restaurant

** Excise duty increased on SUV increased.

The Union finance minister today presented the Budget for the year 2013  - 14. Some of the key points that were highlighted by Chidambaram in the Budget are:

**   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 %  surcharge on domestic companies whose taxable income exceeds Rs 10 crore.

 ** Commodities transaction tax levied on non - agriculture commodities futures contracts at 0.01 % .

**  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 10 %  and

service tax rate of 12 % .

**  Import duty on rice bran oilcake withdrawn.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 %  to safeguard interest of domestic producers.

 ** 10 %  customs duty to be levied on unprocessed illuminate.

 ** Import duty raised from 75 to 100 %  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 % .

 ** Excise duty on SUVs to be increased to 30 %  from 27 % , 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.

 ** Education cess to continue at 3 % .

 ** 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 %  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 %  in current year and 4.8 %  in the next fiscal.

 ** Will redeem our pledge to reduce fiscal deficit to 3 %  by 2016 - 17 and revenue deficit to 1.5 %  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 %  for direct taxes and 4.6 %  for indirect taxes.

 ** Surcharge of 10 %  for individuals whose taxable income is over Rs 1 crore.

 ** Plan expenditure pegged at Rs. 555,322 crore.

 ** Non plan expenditure pegged at Rs. 11,09,975 crore for 2013  - 14.

 ** 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.

** Comprehensive social security package being evolved by convergence of several schemes run by various ministries.

**  Investor with stake of 10 %  or less will be treated as FII; any stake more than 10 %  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.

 ** Small and medium companies to be allowed to listed on MSME exchange without making a public offer.

 ** Concessional 6 %  interest on loans to weavers.

**  Financial Sector Legislative Reforms Commission (FSLRC) to submit its report next month.

**  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.

**  Faced with huge fiscal deficit, I have no choice but to rationalise expenditure

 ** We have brought down headline WPI inflation to 7 %  and core inflation to 4.2 % . Food inflation is worrying

 ** Plan expenditure in 12th Five Year Plan revised to Rs 14,30,825 crore or 96 %  of budgeted expenditure.

 ** Budget expenditure is Rs. 16,65,297 crore and Plan expenditure Rs. 5,55, 322 crore

**  The revised expenditure target is Rs. 14,30,825 crore or 96 %  of Budget estimate for this fiscal. In 2013  - 14, the budget estimate is Rs 16,65,297 crore.

 **  One overarching goal to provide education and skills to youth for securing jobs in the 2013  - 14.

 -** allocates Rs 41,561 crore for SC sub - plan; Rs 24,598 crore for tribal sub plan.

 ** Additional sum of Rs 200 crore to Women and Child Welfare Ministry to address issues of vulnerable women.

 ** Rs.  3511 crore allocated to Minority Affairs Ministry which is 60 %  of the revised estimates.

 ** allocates Rs 41,561 crore for SC sub - plan; Rs 24,598 crore for tribal sub plan.

 **Rs.  3511 crore allocated to Minority Affairs Ministry which is 60 %  of the revised estimates.

 **  Rs. 110 crore to be allocated to the department of disability affairs.

 ** Rs 37,330 crore allocated for Ministry of Health & Family Welfare.

 -** Rs. 1,069 crore allocated to Department of Aryush.

 **Rs. 4,727 crore to be allocated for medical education and research. Rs 1,069 crore to be given to Department of Ayush.

 ** In the Budget Rs. 65,867 crore allocated to Ministry of HRD in 2013  - 14.

 **  Medical colleges in six more AIIMS - like institutions to start functioning this year; Rs 1650 crore allocated for the purpose.

 ** Rs 5,284 crore to various Ministries for scholarships for

SC/ST, OBC and minority students.

 ** Rs. 13,215 crore to be provided for mid - day meal scheme.

 ** Rs. 17,700 crore provided for Integrated Child Development Scheme.

 ** Rs. 15,260 crore to be allocated to Ministry of Drinking Water and Sanitation.

 ** Rs. 17,700 crore to be allocated for Integrated Child Development Scheme (ICDS.

 **  Rs 80,194 crore allocation for Ministry of Rural Development in 2013  - 14. About Rs 33,000 crore for MGNREGA.

**  Rs 80,194 crore allocated for rural development schemes.

**  States which have completed Pradhan Mantri Gramin Sadak Yojana will be eligible for PMGSY - II, others will continue with PMGSY - I.

 ** Rs 14,873 crore for JNNURM for urban transportation in 2013  - 14 against Rs 7,880 crore in the current fiscal.

**  Foodgrain production in 2012 - 13 will be over 250 million Tons.

**  Average annual growth rate of agriculture and allied services estimated at 3.6 %  in 2012 - 13 when 250 MT foodgrains was produced

 **  Rs. 27,049 crore allocation to the Agriculture Ministry in 2013  - 14

 ** Rs. 7 lakh crore target fixed for agriculture credit for 2013  - 14 compared to Rs. 5.75 lakh crore in the current year.

 **  Eastern Indian states to get Rs. 1,000 crore allocation for improving agricultural production.

 ** Additional sum of Rs. 200 crore to Women and Child Welfare Ministry to address issues of vulnerable women.

 ** 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.

 ** 4 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 %  investment deduction allowance apart from depreciation.

**  DIPP and Japan's JICA preparing plan for Chennai - Bengaluru Industrial corridor.

**  Govt to set up India's first women's bank as a public sector bank by October.

**  SIDBI's re - financing facility to MSMEs to be doubled to Rs 10,000 crore.

**  Concessional  6 %  interest on loans to weavers.

**  Rs 6,000 crore to be allocated for rural housing fund in 2013  - 14.

**  National Housing Bank (NHB) to set up urban housing bank fund and Rs 2,000 crore will be allocated in this regard.

 ** 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 %  or less will be treated as FII; any stake more than 10 %  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.

 **   Small and medium companies to be allowed to listed on MSME exchange without making a public offer.

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