Mr. Chidambaram
started narrating the budget on the note of falling global economy and its languishing impact on our domestic economy, then profusely started doling money for the social
sector.
Social-sector
allocations (for Scheduled and backward classes, old people, minorities etc ) were
expected in perspective of the oncoming 2014 general election.
To fare well in the elections sops were necessary but sinking economy was another concern. Rising inflation and twin deficits along with the fear of the downgrade by rating agencies constrained the FM from delivering a populist budget and as a result a insipid budget got delivered which is supposed to boost the economy in coming future.
Economy
FM expects
India has got a potential to become a $ 5 trillion economy by 2025.Fiscal deficit and revenue deficit target for FY 14 has been set up at 4.8 % and
3.3% respectively. An amount of Rs. 14,000 crore shall be infused in PSU banks.
Taxation
·
There
has been no change in the tax slab for FY 2014. However, a tax credit (rebate) of Rs. 2000 shall
be given for the tax payers falling in the Rs. 2-5 lakh income range.
·
For
those who earn more than Rs. 1 crore shall be levied a surcharge of 10 %. This attempt
was attributed as a step towards enhancing the Tax-to-GDP Ratio.
·
Inflation
indexed bonds have been introduced in this budget to desist the people who have
been investing in gold as a hedge against the inflation.
·
First
time home loan buyers shall now avail an additional deduction for a housing
loan up to Rs. 25 lakh. So now for the qualified home loan buyers total deduction
will be Rs. 2.5 lakh.
·
TDS
@ 1% on the property transactions above Rs. 50 lakh has been introduced
Capital markets
·
STT
(Security Transaction Tax)on equity futures reduced to .01 % (earlier .017 %).
Reducing STT was a long term demand from the capital market players.
·
CTT
(Commodity Transaction Tax) has been introduced on on non-agro futures
introduced at .01 %
·
FII
can now trade in ETFs.
·
FII-FDI
distinction shall bring more money into the markets
Rajeev Gandhi
Equity Saving Scheme
has been liberalized, Now people with up
to Rs. 12 lakh gross income can invest in this scheme earlier this was
capped at Rs.10 lakh.
Now, first
time investors shall be allowed to invest in this scheme for successive 3 years-
i.e. 2 more years. Under RGESS, qualified investors can invest up to Rs. 50,000
in designated shares and MF schemes to
become entitled for a deduction of Rs. 25,000.
Entertainment
·
Set
top boxes shall cost u more as custom duty has been increased. DTH experience
becomes expensive
For our youth
·
Mobile
above Rs. 2,000 shall become more expensive due to hike in the import duty from
1% to 6% ,
·
Dining
out in AC restaurants shall now cost more as the same shall now attract the
service tax. So be prepared to shell out more money at Domino’s and McDonald’s.
·
Custom
duty on imported luxury bike has been increased to 75 % from earlier 60 %.
·
Excise
duty on non-taxi SUVs hiked to 30 % from 27 %.
·
SED
(special excise duty) on cigarettes hiked to 18 %
Foreign Travelers
·
Duty
free gold import limit hiked – Rs.
50,000 for male and Rs. 1,00,000 for females
1 Comments:
Stock market volatile, Nifty and Sensex lose badly after budget 2013 speech http://in.reuters.com/subjects/india-budget-2013.
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