Fiscal deficit target for FY 2013-14 is 4.8%. Adopted twin approaches –tax rebates to middle class and increased tax on super rich. Boost to savings and investments. Disinvestment target Rs.55,000 cr. Great emphasize on woman empowerment and safety. SUVs, cigarattes,and AC restaurants ,smart phones will become more dearer.
10% surcharge on income over Rs.1 cr per annum. Rs.2000 rebate for income below 5 lakh. Additional deduction of Rs.1 lakh of interest on first home loans upto Rs.25 lakhs for property worth Rs.40 lakh.
INCOME SLAB TAX RATEUp to Rs.2 lakh Nil2 lakh to 5 lakh 10% - Rs.20005 lakh to 10 lakh 20%10 lakh to 1 crore 30%1 crore and above 33.33%
Rs.500 cr. for crop diversification. Farm credit has been enhanced to 7 lakh crores. Rs.307 cr. for National Livestock Mission. Rs.200 cr. for Nutri-Farms. Rashtriya Krishi Vikas Yojna gets Rs.9,954 cr. Budget lack support for mechanization.
Rs.800 cr. for the Ministry of New and Renewable Energy. Wind energy sector gets a boost. Rs.14,873 cr. For the JNNURM of which the major chunk will be used to purchase new buses. Regulatory authority to speed up work on highways.
1% TDS on immovable properties above Rs.50 lakhs. Rs.2000 cr. for proposed Urban housing fund and Rs. 6,000 cr. for Rural Housing Fund. Initiative for food grain storage godowns at Panchayats. 2 new industrial corridors and new ports. Rs.532 cr for post offices to make them part of core banking.
Rs.2,250 cr for National Food Security Mission. Food subsidy budget is Rs.80,000 cr. Mid day meal to be provided Rs.13,215 cr. National Food Security Act to get Rs.10,000 cr. Ministry of Drinking water and Sanitation gets Rs.15,260 cr.
A proposal for complete social security package for unorganized sector. Sarva Shiksha Abhayan gets Rs.27,250 cr. Rs. 150 cr for reilef and rehabilitation at Kudankulam. Proposal to set up women’s bank. Rs.1,000 cr. Nirbhaya fund to empower women and to keep them safe and secure.
Import duty raised on set top boxes will help the domestic semiconductor industry. Clarity on tax incentives will benefit mainly IT industry. Increased duty on imported cars disappoints automobile industry. But the allocation for buying buses under JNNURM is a relief to commercial vehicles industry.
Firms that invest Rs.100 cr. or more in machinery can deduct an investment allowance. Rs.2,400 cr. for modernization of power loom sector. Rs.1,51,000cr. for Textile Upgradation Fund. Surcharge increased to 10% for domestic companies and 5% for foreign companies.
Rs.2,03,672 cr. for the defence. It include the purchase of modern fighters, missile systems, war ships ,artillery guns etc. Rs. 66 cr for NATGRID and Rs,103.87 cr for NIA.
• Clears ambiguity over the definition of FII and FDI.• More than 10% stake will be a FDI less than that will be FII. Cut in securities transaction tax. RGESS tax deduction allowed to 3 years and income limit raised to 12 lakh. Proposal for inflation linked bonds. Imposition of commodities transaction tax this year of 0.1% for Non-agri.commodities. SENSEX crashed by nearly 300 points.
More clarity on who will bear the tax and who will be responsible for deducting tax at source. Disinvestment target seems ambitious. Clarity on Nirbhaya and woman,s bank is needed. Budget need more stress on mechanization in agricultural sector. Renewable energy generation as well as its distribution could be more stressed.
Even though no tax cuts, the tax rates remained the same. A growth oriented step. Focus on fiscal consolidation. Not so populist but a try to get the investments back. No measures to broaden tax base.