BHAVIKK SHAH's BLOG: UNION BUDGET 2013-14

Friday, March 1, 2013

UNION BUDGET 2013 - 14 : HIGHLIGHTS !!!

GROSS DOMESTIC PRODUCT ESTIMATED TO GROW AT 5.5 %, +/- 0.5 % IN FY13 - 14.

AT CURRENT PRICES THE ADVANCE GDP ESTIMATE OF 2012 - 13 IS Rs. 93,88,876 LAKHS CR AND AT 2004-05 PRICES ITS AT Rs. 54,82,111 LAKHS CR.

FY14 TOTAL SUBSIDES AT Rs. 2,31,000 CR.

FY14 FERTILIZER SUBSIDIES AT Rs. 66,000 CR.

FY14 FOOD SUBSIDIES AT Rs. 90,000 CR.

FY14 OIL & PETROL SUBSIDIES AT Rs. 65,000 CR.

FY14 FISCAL DEFICIT AT Rs. 5,42,000 CR.

FY14 GROSS MARKET LOANS ARE Rs. 6,29,000 CR.

STATE PF ARE Rs. 10,000 CR.

EXTERNAL AID ARE Rs.10,560 CR.

OTHERS ARE Rs. 12,297 CR.

THE CENTER'S EXPENDITURE 2013 - 14 IS PROJECTED AT Rs. 14,90,925 Cr.

IN FLOW (Rs. in Cr)
CORPORATE TAX	4,19,520
INCOME TAX	2,47,639
CUSTOMS DUTY	1,87,308
EXCISE DUTY	1,97,554
SERVICE TAX	1,80,141
TAX OF UNION TERRITORY	2,758
TAX RECEIPTS FOR CENTRAL	8,84,078
STATE's SHARE IN TAX RECEIPTS	3,50,842
TOTAL TAX RECEIPTS	12,34,920

NON TAX RECEIPTS	AMOUNT
INTEREST RECEIPTS	17,764
DIVIDENDS & PROFITS	73,866
EXTERNAL GRANTS	1,456
OTHER NON TAX RECEIPTS	78,000
RECEIPTS OF UNION TERRITORY	1,166
TOTAL	1,72,252

NON DEBT CAPITAL RECEIPTS	66,468
RECOVERY OF LOANS & ADVANCES	10,654
MISC. CAPITAL RECEIPTS	55,814

* Out of the Tax Receipts the Center has to keep aside for Calamity & Contingency Fund of Rs. 4,800 Crs.

FISCAL DEFICIT (In Rs.)	AMOUNT
MARKET LOAN	4,84,000
EXTERNAL AID	10,560
STATE PF	10,000
OTHERS	12,297
TOTAL	5,42,499

OUT FLOW (Rs. in Cr)
PLAN EXPENDITURE	5,55,322
NON PLAN EXPENDITURE	11,09,975
OR
REVENUE EXPENDITURE	14,36,169
CAPITAL EXPENDITURE	2,29,129
DEFENSE	2,03,672
CENTRAL PLAN OUT LAY	99,030
GRANTS TO STATES & UTs	76,981
PENSIONS	70,726
INTEREST PAYMENTS	3,70,684
LOANS TO PSUs	417
OTHER GENERAL SERVICES	22,903
LESS OTHERS	302
CENTRAL PLAN	3,20,038
POSTAL DEFICIT	6,717
EXPENSES of UTs with out Legislature	4,395
NON PLAN CAPITAL OUTLAY	30,131
ECONOMIC SERVICES	24,334
GRANTS TO FOREIGN GOVT.	4,114
CENTRAL PLAN AID TO STATES	1,23,222
SOCIAL SERVICES	23,114
POLICE SERVICE	40,895

SOME MORE POINTS FROM BUDGET:-

No change in Income tax rates and slabs.
Imposed Surcharge of 10% on person whose taxable income exceeds Rs.1 Cr/yr. This will apply to Individuals, HUF's, Firms & entities with similar tax status.
The additional surcharge will be force for only one year i.e. FY 2013-14.
Increased surcharge from 5% to 10% on domestic companies whose taxable income exceeds Rs.10 Cr/yr, in case of foreign companies who pay the higher rate of Corp tax the surcharge will increase from 2% to 5%.
Effective Tax rate @33.99% for domestic co. having income more than Rs.10 Cr.
Effective MAT rate for Domestic co @21%.
DDT surcharge increased from 5% to 10%.
Tax credit of Rs. 2000 for income upto Rs.5 lakhs.
To impose TDS @1% on the value of the transfer of Immovable property wherein consideration exceeds Rs. 50 lakhs, Agriculture land will be exempted.
STT on Equity futures reduced from 0.017 to 0.01 %.
STT on MF/ETF redemptions at fund counter reduced from 0.25 to 0.001%.
STT on MF/ETF purchase/sale on exchange reduced from 0.1 to 0.001% only on seller.
To levy CTT on non-agriculture commodities futures contracts at 0.01% of the price of the trade. CTT will be allowed as deduction if the income from such transaction forms part of business income.
Import duty on Set Top Boxes raised from 5% to 10%.
Import duty on Luxury Cars & vehicles & Yachts raised from 75% to 100%.
Duty free Gold limit increased to Rs.50,000 in case of Male passenger & Rs.1,00,000 in case of female passenger subject to conditions.
Excise duty on SUV's increased from 27% to 30%, not applicable to SUV registered as Taxis.
Effective custom duty on SUV's increased from 138% to 178%.
Vehicle Parking now comes under Service Tax.
PSU Banks to get Rs. 14,000 Cr for Recap & Capital infusion of Rs. 12517 Cr by FY13.
Home Loans upto Rs. 25 lakhs to be allowed additional deduction of interest of Rs.1 lakh.
To set up India's first Women's Bank as a PSB with Rs. 1000 Cr as initial capital. It will obtain the necessary approval & banking licence by October 2013.
FY14 disinvestment target Rs. 40,000 Crs.
Farm GDP was 3.6 % in 11th Plan in GDP growth of 5.6 %.
GOV. will need $75 billion to finance Current Account Deficit over next 2 years.
Investor holding stake of 10% or less in a company will be treated as FII.
Investor holding stake of more than 10% in a company will be treated as FDI.
FII will be permitted to use their investment in corporate bonds & Gov. securities as collateral to meet their margin requirements.
Small & medium enterprise incl. Start Ups will be permitted to list on SME Exchange without being required to make an Initial Public Offer,but the issue will be restricted to informed investor.
FII will be permitted to trade in Exchange Traded Currency Derivative to the extent of their Indian Rupee Exposure in India.
Stock Exchanges to be allowed to introduce Dedicated Debt Exchange.
JNNURM will be given Rs. 14873 Cr,this will help in purchase of 10,000 buses by hilly stations.
More institutions be allowed to raise Tax Free Bonds upto a total sum of Rs.50,000 Cr.
Rajiv Gandhi Equity Saving Scheme to be liberalised -1st time investors can invest into Mutual Funds &Listed shares for 3 successive years. The income limit will be raised from Rs. 10,00,000 to Rs. 12,00,000.
Investment allowance @15% to manufacturing company that invests more than Rs. 100 Cr in plant & machinery during 1.4.2013 to 31.3.2015.
To introduce Inflation Indexed Bonds or Inflation Index National Security Certificates.
To provide Low Cost finance to viable renewable energy projects and Generation based incentives for Wind Energy projects.
Govt. proposes to expand FM Radio services to 294 more cities &about 839 new FM radio channels will be auctioned in 2013-14, All cities having a population of more than 1 lkh will be covered by private FM radio services.
Defence sector allocated Rs. 2.03 lakh Cr.
Corporate surcharge reduced from 7.5 % to 5 %.
Dividend from foreign subsidiary to Indian companies down from 30 % to 15 %