BUGDET 2013: HIGHLIGHTS - Income Tax etc...

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BUGDET 2013: HIGHLIGHTS - Income Tax etc... Following are highlights of the budget: * India faces challenge of getting back to its potential growth rate of 8 pct * India must unhesitatingly embrace growth as highest goal * India's greater worry is the current account deficit - will need more than $75 billion this year and next year to fund deficit * Higher growth with inclusive growth-our mantra; without growth no inclusive development * Growth rate under UPA was highest * Between 2004 and 2008 and again in 2009-10 and 2010-11 the growth rate was over 8% * There is no reason for gloom or pessimism * Global economic growth declined * I seek the support as we navigate the crisis that has enveloped the whole world * We have examples of states growing at fast state but leaving behind women, SC, ST etc; UPA believes in inclusive development * Economic space right now constrained by high fiscal deficit, tight monetary policy to contain inflation * CAD high due to high imports in coal and oil * Aggregate demand another cause for inflation; it must be fought at many fronts * Foeign investment is imperative to meet our economic objectives * Had no choice but to rationalize expenditure; have retrieved some economic space and to advance our socio-economic objectives * Food ifnlation is worrying; we will take all steps to meet demand * Plan expenditure will be 29.4% more than revised estimates in the current year * Budget for 2013-14 has one overarching goal-to create opportunities for youth to get skills to get jobs,and adequate incomes * Made sufficient allocation for programmes relating to women an children * Single women and widows must be able to live with dignity; WCD has been asked to design schemes * Funds for the sub-funds cannot be diverted * FM: Rs. 110 crore to be allocated to department of disability * The new national health mission will get 24.5% increase over the RE * Rs. 150 cr to be provided for geriatric growth * Allocation for HRD 17% over the RE of the current year * Thousand of scholarships for students belongs to SC, STs, and disadavantaged classes * Focus will continue to be on early childhood care * Multisectoral programme to fight malnutrition will be implemented; Rs. 300 crore to be allocated; 100 districts to be covered * Rs. 33,000 crore to be allocated to MNREGA * Will allocate Rs. 17,700 crore to Integrated Child Development Services (ICDS) scheme * JNNURM is being continued in the 12th Plan; Rs. 14,873 crore to be provided to the Mission * A large part of the JNNURM to be spent on purchase of buses especially in the hilly areas * Farmers have responded to the price signals and produced more; Rs. 27,049 cr to be allocated to the agriculture ministry * Assam, Bihar, Chattisgarh and WB have increased rice production * Small and marginal farmers vulnerable everyone; watershed management crucial; Rs. 5387 cr allocated for Integrated Watershed Programme * Indian Institute of BioTechnology to be set up at Ranchi * Proposal to provide Rs. 500 crore to start programme on crop diversification * 45% hike in rural budget allocation * The National Livestock Mission will be launched in 2013. Rs. 307 crore to be provided for the Mission * The National Food Security Bill is the promise of the UPA Govt, sincerely hope that Parliament will pass the Bill soon * The key to restart growth is to restart the investment engine; will remove any apprehension in the minds of investors * Need new and innovative funds to mobilise investment * Need to improve communication of policies to remove distrust and fear among investors * Propose to seek help of ADB and WB to invest in roads in NE states and connect them to Myanmar * The road construction sector faces challenges not envisaged earlier including financial stress; Regulatory Authority to be set up * Cabinet Committee on Investment has been set up to monitor and guide the projects to remove bottlenecks * Marginal increase in allocation for food subsidy * Rs. 15,260 crore to be allocated to ministry of drinking water and sanitation * The household sector must be incentivised to save in financial instruments * Rs. 25000 crore to be raised from four infrastructure bonds * The Delhi Mumbai Industrial Project has made rapid projects; work on 2 new smart industrial cities will start during 2013-14 * Proposal to bring instruments that will protect (the country) from inflation * The next corridor will be the Bengaluru-Mumbai Industrial corridor * Marginal increase in allocation for food subsidy * 5 inland waterways have been declared as national waterways * Income level for Rajiv Gandhi Equity Scheme raised by Rs. 2 lakh * Additional interest deduction upto 1 lakh for home loan upto Rs. 25 lakhs during FY 14. Deduction available on first home loan * Delhi Mumbai Industrial Project has made rapid progress * Semiconductor sector given boost with zero customs duty on import of plant and machinery * Activities on NELP blocks to kick start * The natural gas pricing policy will be reviewed; any LP blocks that have been stalled will be cleared * Inflation indexed bonds and NSCs to be introduced * Srinagar to Leh to be connected via a new highway * The govt has approved a scheme for financial restructuring of discoms; urge state govts to prepare the plans immediately * We need to reduce dependence on imported coal, despite abundunt coal reserves we continue to import coal * MSMEs: too many of them do not grow due to fear of losing benefits,  propose to give them them non-tax benefits for 3 years * Propose to continue with the technology upgradation funds scheme for the textile sector, environmental concerns of the textile industry to be taken care of * 150,000 individual weavers will benefit in this year, propose to allocate an addl sum of Rs. 96 crore for ministry of textiles * Propose to constitute a standing counsel of experts to analyse the competitiveness of the Indian sector * In 2013-14, propose to provide Rs. 14000 crore for capital infusion in public sector banks * PSBs have assured me that all their branches will have an ATM by 2013-14 * Capital infusion to public sector banks to be increased in FY 14 * 13 public sector banks to get Rs. 14000 crore * Propose to set up India's first women's bank as a Public Sector Bank; propose to provide Rs. 1000 crore as initial capital * Propose to provide Rs. 600 cr to rural housing fund in 2013-14 * Insurance companies will be able to start branches in Tier 2 cities and below, without approval of IRDA * The insurance amendement bill and the PFRDA bills are before the house; hope that they will be passed soon * Income limit for the tax-saving Rajiv Gandhi Equity Savings Scheme raised to Rs. 12 lakh from Rs. 10 lakh * Domestic workers, Anganwadi workers, etc to get group insurance * SEBI will simplify procedures for entry of foreign portfolio investors to invest in India * The list of eligible securities will be enlarged * KYC of banks will be enough to get insurance * All towns of India with a population of over 10000 to have an LIC office * Low interest bearing funds for clean / green energy sector. Generation-based incentives for wind energy * Will encourage cities to take up waste-energy projects through PPPs * Present criteria for determining backwardness will be changed; propose to frame new criteria * Defence spending at Rs. 2,20,000 crore, Rs. 86721 crore for capital expenditure * Rs. 5400 crore to department of space and Rs. 5600 crore to department of atomic energy * With help of Ministry of S&T,I have identified amazing innovations; Will allocate Rs. 200 crore to scale them & make them avaiable to people * National Institute of Sports Coaching to be set up at Patiala * Cities with population of more than 1 lakh will be covered with private FM channel providers, 294 more cities to be connected by FM radio  * Rashtriya Swasthya Bima Yojana to include rickshaw pullers, taxi drivers and ragpickers * Post offices to beome part of core banking solutions * Nirbhaya Fund with a corpus of 1000 crore to be set up for girl child welfare * Ambitious targets of skilling 15 million people in the 12th plan * Skill trained will be given boost in employment and producitvity; 10 lakh youth can be motivated in one year * Planned expenditure to be 33% of total expenditure * Assure that the Direct Benefit Transfer scheme will be rolled out during the term of the UPA govt * Redeem our promise by 2016-17 and bring down fiscal deficit to 3% and revenue deficit to 1.5% * The fiscal deficit for the current year has been contained at 5.2% * No revision in the slabs, relief for tax payers * Surcharge of 10% for taxable incomes above Rs. 1 crore * Tax credits of Rs. 2000 to every person who has total income upto Rs. 5 lakh * Education cess to continue at 3% * Surcharge of 5% to 10% on companies whose income exceeds 10 crore per year * There are 42,800 persons in the country who admitted to a taxable income exceeding Rs. 1 crore per year * Donations made to National Children's Fund will now be 100% deductible * Contributions to the CGHS are eligible for deduction * Rate of tax on payments by way of royalty increased from 10% to 25% * Modified provisions of GAAR will come into effect from 1.04.2016 * Commodity Transaction Tax to be introduced in limited way * Direct taxes code is work in progress * Imported luxury goods to get costly * Increase import duty to increase from 5% to 10% to encourage production of set top boxes in the country * ST does not apply to AC restaurants that do not serve liquor at present; now all AC restaurants will have to pay service tax * SUVs occupy more road and parking space and ought to bear higher tax: excise duty rate to be increased from 27% to 30% * Increase in import duty on high-end motor vehicles from 75% to 100%; and on motorcylces from 60% to 75% * Wish to encourage large number of assesees to return to the tax fold * Serious intent of the govt to pass a GST law, need for state and central govt to pass a GST law * 4% excise duty on silver manufactured from smelting, zinc or lead * Specific excise duty on cigarettes increased by 18% * Ships and vessels exempted from excise duty * Donations made to National Children's Fund will now be 100% deductible * Contributions to the CGHS are eligible for deduction * Rate of tax on payments by way of royalty increased from 10% to 25% * ST does not apply to AC restaurants that do not serve liquor at present; now all AC restaurants will have to pay service tax * Wish to encourage large number of assesees to return to the tax fold * Serious intent of the govt to pass a GST law, need for state and central govt to pass a GST law * By 2025, we could become a $5-trillion economy

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