Highlights of Union Budget 2013-14

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SME Times News Bureau | 28 Feb, 2013
Highlights of the budget for 2013-14 presented by Finance Minister P. Chidambaram in the Lok Sabha on Thursday:

No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.500,000 (approx USD 9,000)
Ten percent surcharge on income exceeding Rs.1 crore (Rs.10 million/USD 180,000) a year; only 42,800 people have declared such income
Collective responsibility to ensure dignity and safety of women; recent incidents have cast a dark shadow; stand in solidarity with our girl children and women; will keep them safe and secure
Rs.1,000 crore allocated for establishing Nirbhaya Fund
Rs.97,000 crore (Rs.970 billion/USD 18 billion) for women's development
Defence allocated Rs.203,672 crore (Rs.2.03 trillion/USD 37 billion), an increase of five percent
Import duty on high-end vehicles raised from 75 percent to 100 percent
Excise duty on cigarettes to be increased 18 percent
No change in service tax of 12 percent
No service tax on vocational courses run by institutes affiliated to state governments
Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol
No service tax on agricultural testing procedures
Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST
Concessions for encouraging MRO (maintenance repair overhaul) sector
No change in customs duty on non-agricultural products
Modified law to prevent tax avoidance to come into effect April 1, 2016
100 percent tax deduction for contributions to National Children's Fund
Education cess to continue at 3 percent
11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)
Property transactions skewered; TDS of one percent where transaction exceeds Rs.50 lakh
Tax on mutual fund redemptions reduced from .25 percent to .001 percent
Tax Administrative Reforms Commission to be set up
Cities to be encouraged to promote waste to energy projects
Low interest funds to be provided for promoting clean energy
Rs.800 crore provided to promoting wind energy
Two new ports to be set up in West Bengal and Andhra Pradesh to add 100 million tonnes handling capacity
Gas handling terminal at Dabhol in Maharashtra to be fully operational during 2013-14
State governments urged to sign restructuring plans with electricity discoms
Tax-free infrastructure bonds of Rs.50,000 crore to be issued
Textile ministry allocated Rs.50 crore for establishing apparel parks
Handloom sector allocated Rs.96 crore to benefit 150,000 weavers
Infrastructure debt funds to be encouraged
Regulator to be appointed for road projects; 3,000 km of road projects to be awarded in first six months of 2013-14
Incentive allowance of 15 percent over and above permitted depreciation to those investing over Rs.100 crore in infrastructure projects
Rajiv Gandhi Equity Scheme to be liberalised
Seven new cities identified along Delhi-Mumbai Industrial Corridor
Preliminary work begun on Bangalore-Mumbai Industrial corridor
Foodgrain production during 2013-13 estimated at 250 million tonnes
Rs.500 crore allocated for promoting crop diversification
Rs.200 crore allocated for promoting nutrient-rich crops
Rs.50 crore allocated for farmer-producer organisations
National Livestock Mission to be launched with allocation of Rs.307 crore
Hope parliament will pass food security bill; Rs.10,000 crore allocated for initial expenditure on implementation
Human resource development ministry to get Rs.65,867 crore
Rs.13,250 crore allocated for midday meals scheme
Rs.17,700 crore allocated for Integrated Child Development Scheme
Drinking water and sanitation ministry allocated Rs.15,260 crore
Allocation of rural development ministry allocation raised by 46 percent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme
Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at Rs.5 lakh 55,224 crore
Rs.41,000 crore for Scheduled Caste plan
Rs.110 crore for department of disabilities
Rs.37,330 crore for health ministry
Average growth during UPA-1 was 8 percent; high growth not a novelty
Current account deficit a worry because of high oil and gold imports
Will need USD 75 billion to finance current account deficit
Need to encourage FDI in consonance with economic priorities
WPI inflation down to 7 percent; food inflation worrying.