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Highlights of the Budget for the year 2013-14

Highlights of the Budget for the year 2013-14 are:

Direct Tax:

  • No change in personal Income tax rates and slabs.
  • Relief has been provided to tax payers in the first bracket of Rs.2 Lac to Rs.5 Lac. Tax credit of Rs.2000 to every Individual with total Income up to Rs.5 Lac.
  • Surcharge of 10% on persons (other than companies) whose taxable income exceeds Rs.1crore.
  • Surcharge increased from 5 to 10% on domestic companies whose taxable income exceeds Rs.10 crore.
  • RGESS will be liberalized and extended to 3 successive years. Limit for investors has been raised to Rs.12 Lac from Rs.10 Lac earlier.
  • Surcharge increased on dividend distribution tax or tax on distributed income from 5 to 10%.
  • Additional surcharges to be in force for only one year.
  • Donations made to National Children Fund eligible for 100% deduction.
  • Permissible premium rate increased from 10 to 15% of the sum assured by relaxing eligibility conditions of life insurance policies for persons suffering from disability and certain ailments.
  • Contributions made to schemes of Central and State Governments similar to Central Government Health Scheme are eligible u/s 80D.
  • Investment allowance at the rate of 15% to manufacturing companies that invest more than Rs.100 crore in plant and machinery during the financial year 2013-14 and 2014-15.
  • Concessional rate of tax of 15% on dividend received by an Indian company from its foreign subsidiary proposed to continue by another one year.
  • TDS at the rate of 1% on the value immovable properties transferred where consideration exceeds Rs.50 Lac. However, agricultural land to be exempted.
  • Modified provisions of GAAR applicable from 1st April 2016.
  • Commodity Transaction Tax (CTT) proposed in a limited way. However, agricultural commodities will be exempted.
  • Securities Transaction Tax (STT) reduced in certain transactions.

Indirect Tax:

  • Excise duty on cigarettes including cigars, cheroots & cigarillos increased by 18%.
  • Excise duty on SUV increased from 27% to 30%, Marble increased from Rs.30 to Rs.60 per sq. Meter, 4% excise duty proposed on silver manufactured from smelting zinc or lead.
  • Excise duty on mobile phones priced more than Rs.2000 raised to 6%.
  • Service Tax proposed on all air conditioned restaurants.
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