alexa
Indianmoney.com Missed Call Number

Get Term Plan @ Just Rs.7/- per day*

Search IndianMoney

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
Home Articles Highlights of Union Budget 2013-14

Highlights of Union Budget 2013-14

IndianMoney.com Research Team | Updated On Monday, March 04,2019, 10:11 AM

  • ★
  • ★
  • ★
  • ★
  • ★
5.0 / 5 based on 1 User Reviews

Highlights of Union Budget 2013-14

 

 

The Union Budget for 2013-14 aims at 'higher growth leading to inclusive and sustainable development.' With this as mool mantra, the Union Finance Minister Shri P Chidambaram has sought to increase allocation to key areas and provide incentives for investments and savings while containing the fiscal deficit to 4.8% of GDP.

Highlights of Union Budget 2013-14

Direct Taxes

  • 5% surcharge on domestic companies whose income exceeds Rs 1 crore
  • 10 % surcharge on domestic companies whose income exceeds Rs 10 crores
  • Surcharge on Dividend Distribution Tax (DDT) increased from 5 % to 10%
  • Securities Transaction Tax (STT) rates cut on equity futures to 0.01% and for Mutual Funds to 0.001 %
  • Commodities transaction tax (CTT) levied on non-agriculture commodities futures contracts at 0.01%
  • Additional Income tax of 20 % for buyback of shares by Unlisted Companies except for buyback of shares on face value
  • Tax on Royalty / Fees for technical for services provided abroad increased from 10% to 25 % subject to Double Taxation Avoidance Agreements
  • Modified GAAR norms to be introduced from April 1, 2016
  • Donations to National Children’s Fund will be eligible for 100% tax deduction
  • Long-term infra bonds also eligible for tax deduction
  • Direct Tax Bill to be placed soon

Customs Duty

  • No change in Peak basic customs duty of 10%
  • Leather and goods duty reduced to 5%
  • Higher duty on imported vehicles

    ->  Luxury cars import duty at 100%
    ->  Import duty on Yachts duty at 25%
    ->  Import duty on motorcycle at 75%

  • Precious, semi-precious duty reduced
  • Exempts imported ships and vessels from duty
  • Duty cut on leather, leather good machines
  • To levy 2% customs, CVD on coal imports
  • Higher customs duty on set top boxes from 5 % to 10 %
  • Customs duty unchanged for non agri products
  • To provide appropriate incentives for semiconductors industry including zero customs duty on plants and machineries.

Excise Duty

  • No change in Excise duty of 12%
  • 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
  • Duty on mobiles above Rs 2,000 raised from 1 to 6 %, based on their maximum retail prices

Service Tax

  • No change in Service tax rate of 12%
  • One time voluntary compliance scheme for service tax defaulters to be introduced for unpaid service tax since 1-10-07. Interest and penalties to be waived and payment may be made in 1 or 2 instalments
  • Service tax to be levied on all AC restaurants (whether serving liquor or not)
  • 2 Services added in Negative List

    ->  Vocational courses affiliated to Institute of Vocational Studies
    ->  Testing for Agriculture products

Personal Taxation (Direct and Indirect)

  • No changes in personal Income Tax slabs
  • Tax credit of Rs 2000 for income upto Rs 5 lakh
  • Additional 10% surcharge would be levied on those whose taxable income is above Rs 1 cr per annum
  • TDS of 1% to be levied on transactions above Rs 50 lakhs on transfer or sale of immovable property; agricultural land exempt
  • Educational Cess to continue at 3 %
  • Additional deduction of interest of Rs. 1 lacs for 1st time Home buyers for loans less than Rs. 25 lacs
  • Duty free limit in personal baggage on gold raised to Rs 50,000 in case of male and Rs 100,000 in case of female
  • Rajiv Gandhi Equity Savings Scheme (RGESS) will be liberalized & the investor will be allowed to invest in mutual funds. The investor will be able to do this for a period of 3 successive years. The limit for investors wanting to invest in RGESS raised from Rs 10 lakh to Rs 12 lakh.

Goods and Services Tax (GST)

  • Draft bill on constitutional amendment and for GST to be placed in 2013
  • 9000 crores compensation package for states for foregoing CST

Capital Markets

  • SEBI to simplify KYC norms governing foreign investors
  • Small and medium companies to be allowed to listed on MSME exchange without making a public offer
  • 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. Committee to be constituted to proposes amendments in the regulations based on the said principle.
  • FIIs will be allowed to participate in exchange traded currency derivatives
  • Designated Depository Participants free to register different classes of portfolio investors
  • Dedicated Debt segment on Stock Exchanges

SME Segment / Start-ups

  • In order to encourage SMEs 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
  • SIDBI’s re-financing facility to MSMEs will be doubled to Rs 10,000 crore.
  • Small and medium companies to be allowed to listed on MSME exchange without making a public offer
  • Funds provided by Companies to Technology incubators like Campus in Technology institutions approved by Ministry of Science and Technology to qualify as a valid Corporate Social Responsibility (CSR) expenditure in line with the new Companies Bill.
  • SMEs to enjoy non tax benefits for 3 years after they outgrow category

Infrastructure Sector

  • Infrastructure Debt Funds (IDF) to be encouraged. Four infrastructure debt funds have been registered with SEBI; two more planned
  • 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
  • Government has decided to constitute a regulatory authority for the road sector

Banking / Finance / Insurance Sector

  • India’s first women’s bank to be set up as a public sector bank by October 2013 with an initial capital of 1000 cr.
  • Banks allowed to act as Insurance Brokers
  • Banks KYC norms sufficient for insurance policies
  • Group Insurance benefits to be extended to several new groups
  • All PSU Banks to have ATMs in one year
  • Post Offices to offer Core Banking Solutions
  • PFRDA and Insurance Laws amendment bills to tabled in the budget session
  • NHB to set up Urban Housing Bank
  • Inflation indexed Bonds and NSCs to be issued

Non-renewable energy Sector

  • 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

Miscellaneous

  • Nirbhaya Fund to be constituted with a corpus of Rs. 1000 cr for women safety and security
  • Auction of 839 new FM channels licenses to cover all cities with a population of > 1 Lac
  • National Skill Development Corporation to formulated for Training Curriculum
  • Direct Benefit Transfer Scheme for Poor to continue

Related Articles

Highlights of Union Budget 2013-14
Highlights of Union Budget 2013-14
History of Tax
History of Tax
Income Tax Rates for Individuals for the Financial Year 2008-09
Income Tax Rates for Individuals for the Financial Year 2008-09

 

Did you find this article useful? You can Rate us
  • ★
  • ★
  • ★
  • ★
  • ★
5.0 / 5 based on 1 User Reviews
Service Tax Union Budget Budget customs duty Direct Taxes
Article Author

IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

Subscribe to our Youtube Channel

Latest Stories

How Suraj Gifted His Loved Ones a Health Insurance Plan?

21 August 2019, Wednesday

Who Else Wants Health Insurance?

21 August 2019, Wednesday

Government Schemes for Term and Health Insurance

21 August 2019, Wednesday

Why Yes Bank Shares are Falling?

21 August 2019, Wednesday

10 Best Things About Term Insurance

21 August 2019, Wednesday

Don't Just Sit There! Get Health Insurance

20 August 2019, Tuesday

How Satish Protected Himself with Rs 150 a Month?

20 August 2019, Tuesday

How Shyam Got a Crore to Protect His Family?

20 August 2019, Tuesday

Calculators

Car loan EMI Calculator
Home loan EMI Calculator
Personal loan EMI Calculator
Investment Calculator
Human Life Value Calculator
Child Goal Planner Calculator
Income Tax Calculator
 
Get the Best Financial Advice on Gold LoanClick Here
 

  • Ask Money Doctor

    Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.

  • Ask IndianMoney.com Money Doctor

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
CIBIL Meter

Get FREE Credit Score now!
Get It now!
Attention!

This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.