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Income Tax for Individuals and HUFs for the Assessment Year 2014-15 (FY 2013-14)

  • New Added Tax Saving under RGESS - over and above the present tax savings

    A. Individuals and HUFs

    In case of individual (other than II, III and IV below) and HUF:-

    Surcharge : 10% On Taxpayers with annual income of more than one Crore rupee a year.

    Education Cess:3% of the Income-tax.

    II. In case of individual being a woman resident in India and below the age of 60 years at any time during the previous year:-

    Surcharge : 10% On Taxpayers with annual income of more than one Crore rupee a year.

    Education Cess:3% of the Income-tax.

    III. In case of an individual resident who is of the age of 60 years or more at any time during the previous year:-

    Surcharge : 10% On Taxpayers with annual income of more than one Crore rupee a year.

    Education Cess:3% of the Income-tax.

    IV. In case of an individual resident who is of the age of 80 years or more at any time during the previous year:-

    Surcharge : 10% On Taxpayers with annual income of more than one Crore rupee a year.

    Education Cess:3% of the Income-tax. Calculations Made Easy Calculator


    Budget 2013 Highlights

    Following are highlights of the Budget:

    FISCAL DEFICIT

    • Fiscal deficit seen at 5.2 point of GDP in 2012/13
    • Fiscal deficit seen at 4.8 point of GDP in 2013/14
    • Faced with huge fiscal deficit, India had no choice but to rationalize expenditure

    BORROWING

    • Gross market borrowing seen at 6.29 trillion rupee in 2013/14
    • Net market borrowing seen at 4.84 trillion rupee in 2013/14
    • Short-term borrowing seen at 198.44 billion rupee in 2013/14
    • To buy back 500 billion rupee worth of bonds in 2013/14

    SUBSIDIES

    • 2013/14 major subsidies bill estimated at 2.48 trillion rupee from 1.82 trillion rupee
    • Petroleum subsidy seen at 650 billion rupee in 2013/14
    • Revised petroleum subsidy for 2012/13 at 968.8 billion rupee
    • Estimated 900 billion rupee spending on food subsidies in 2013/14
    • Revised food subsidies at 850 billion rupee in 2012/13
    • Revised 2012/13 fertiliser subsidy at 659.7 billion rupee

    GROWTH

    • India faces challenge of getting back to its potential growth rate of 8 point
    • India must unhesitatingly embrace growth as highest goal

    SPENDING

    • Total budget expenditure seen at 16.65 trillion rupee in 2013/14
    • Non-plan expenditure estimated at about 11.1 trillion rupee in 2013/14
    • India's 2013/14 plan expenditure seen at 5.55 trillion rupee
    • Revised estimate for total expenditure is 14.3 trillion rupee in 2012/13, which is 96 point of budget estimate
    • Set aside 100 billion rupee towards spending on food subsidies in 2013/14

    REVENUE

    • Expect 133 billion rupee through direct tax proposals in 2013/14
    • Expect 47 billion rupee through indirect tax proposals in 2013/14
    • Target 558.14 billion rupee from stake sales in state-run firms in 2013/14
    • Expect revenue of 408.5 bln rupee from airwave surcharge, auction of telecom spectrum, licence fees in 2013/14

    CURRENT ACCOUNT DEFICIT

    • India's greater worry is the current account deficit - will need more than $75 billion this year and next year to fund deficit

    INFLATION

    • Food inflation is worrying, will take all steps to augment supply side

    TAX

    • Proposes of Rs. 2000/- tax credit for tax payers in tax bracket of Rs. 2-5 lakh
    • Proposes surcharge of 10 point on rich taxpayers with annual income of more than 10 million rupee a year
    • To increase surcharge to 10 point on domestic companies with annual income of more than 100 million rupee
    • For foreign companies, who pay the higher rate of corporate tax, the surcharge will increase from 2 pct to 5 per cent.
    • Proposed liberalising the Rajiv Gandhi Equity Savings Scheme to enable first time investors to park funds in MFs and listed shares and extended tax benefits to three successive years. The limit for investors wanting to invest in RGESS has been raised to Rs 12 lakh from Rs 10 lakh earlier. Under the scheme, an individual with an income of less than Rs 12 lakh would get tax incentives for investing up to Rs 50,000 in the stock market.
    • To continue 15 point tax concession on dividend received by India companies from foreign units for one more year
    • Propose to impose withholding tax of 20 point on profit distribution to shareholders
    • Amnesty on service tax non-compliance from 2007
    • 10 billion rupee for first installment of balance of GST (Goods and Services Tax) payment
    • Propose to reduce securities transaction tax on equity futures to 0.01 point from 0.017 point
    • Time to introduce commodities transaction tax (CTT)
    • CTT on non-agriculture futures contracts at 0.01 point

    CORPORATE SECTOR AND MARKETS

    • To issue inflation-indexed bonds
    • Proposes capital allowance of 15 point to companies on investments of more than 1 billion rupee
    • Foreign institutional investors (FIIs) can use investments in corporate, government bonds as collateral to meet margin requirements
    • Insurance, provident funds can trade directly in debt segments of stock exchanges
    • FIIs can hedge forex exposure through exchange-traded derivatives
    • Investor with less than 10 point stake in a company will be regarded as FII, more than 10 point stake as FDI (foreign direct investment)
    • Stock exchange regulator will simplify know-your-customer norms for foreign portfolio investors
    • To implement quickly recommendations of financial sector legislative reforms commission
    • To cut factory gate duty on trucks to 13 pct from 14 pct

    POWER AND ENERGY SECTOR

    • Zero customs duty for electrical plants and machinery
    • Move to revenue-sharing from profit-sharing policy in oil and gas sector
    • To equalise duties on steam and bituminous coal to 2 point customs duty and 2 point cvd (countervailing duty)

    FOREIGN TRADE

    • To cut duty on exports of precious and semi-precious stones to 2 point from 10 point
    • No duty on import of ships, vessels

    BANKING

    • To provide 140 billion rupee capital infusion in state-run banks in 2013/14

    DEFENCE

    • To allocate 2.03 trillion rupee to defence in 2013/14

    AGRICULTURE





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