Thursday, February 28, 2013

Highlights of Union Budget 2013-14

FISCAL DEFICIT

* Fiscal deficit seen at 5.2 pct of GDP in 2012/13

* Fiscal deficit seen at 4.8 pct of GDP in 2013/14

* Faced with huge fiscal deficit, India had no choice but to rationalise expenditure

GROWTH

* India faces challenge of getting back to its potential growth rate of 8 pct

* India must unhesitatingly embrace growth as highest goal

SPENDING


* Total budget expenditure seen at 16.65 trillion rupees in 2013/14

* India's 2013/14 plan expenditure seen at 5.55 trillion rupees

* Non-plan expenditure estimated at about 12 trillion rupees in 2013/14

* Revised estimate for total expenditure is 14.3 trillion rupees in 2012/13, which is 96 pct of budget estimate

* Set aside 100 billion rupees towards spending on food subsidies 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 surcharge of 10 pct on rich taxpayers with annual income of more than 10 million rupees a year

* To increase surcharge to 10 pct on domestic companies with annual income of more than 100 million rupees

* Education cess to continue at 3 pct

CORPORATE SECTOR AND MARKETS

* Plans to issue inflation-indexed bonds * Proposes capital allowance of 15 pct to companies on investments of more than 1 billion rupees

* 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 pct stake in a company will be regarded as FII, more than 10 pct 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

POWER AND ENERGY SECTOR


* Proposes zero customs duty for electrical plants and machinery

* Proposes to move to revenue-sharing from profit-sharing policy in oil and gas sector

BANKING

* To provide 140 billion rupees capital infusion in state-run banks in 2013/14

* To allocate 10 billion rupees for India's first women's bank

DEFENCE

* To allocate 2.03 trillion rupees to defence in 2013/14

AGRICULTURE


* To allocate 801.94 billion rupees to rural development in 2013/14

* Plan to allocate 270.49 billion rupees for agriculture in 2013/14

FINANCE MINISTER COMMENTS

* "Faced with a huge fiscal deficit, I have no choice but to rationalize expenditure. We took a dose of bitter medicine. It seems to be working."

Tuesday, February 5, 2013

TDS RATES & LIMITS CHART (AY 2013-14)

TDS RATES & LIMITS CHART (A.Y. 2013-14)
S.No
Sec
Nature of Payment in brief
Cut Off Amount
Rate %
01.04.12
01.07.12
HUF/IND
Others
1

192
Salaries
Salary income must be more then exemption limit after deductions
Average Rate
2
193
Interest on debentures
     2,500.00
5,000.00
10
10
3
194
Deemed dividend
 -
-
10
10
4
194A
Interest other than Int. on securities (by Bank)
   10,000.00
  10,000.00
10
10
4A
194A
Interest other than Int. on securities (By others)
     5,000.00
5,000.00
10
10
5
194B
Lottery / Cross Word Puzzle
   10,000.00
  10,000.00
30
30
6
194BB
Winnings from Horse Race
     5,000.00
    5,000.00
30
30
7
194C(1)
Contracts
   30,000.00
30,000.00
1
2
8
194C(2)
Sub-contracts/ Advertisements
   30,000.00
  30,000.00
1
2
9
194D
Insurance Commission
   20,000.00
  20,000.00
10
10
10
194EE
Payments out of deposits under NSS
     2,500.00
    2,500.00
20
-
11
194F
Repurchase of units by MF/UTI
     1,000.00
    1,000.00
20
20
12
194G
Commission on sale of lottery tickets
     1,000.00
    1,000.00
10
10
13
194H
Commission or Brokerage
     5,000.00
    5,000.00
10
10
14
194I
Rent (Land & building)
 180,000.00
180,000.00
10
10
Rent (P & M , Equipment, furniture & fittings)
 180,000.00
180,000.00
2
2
15
194J
Professional/Technical charges/Royalty & Non-compete fees
   30,000.00
   30,000.00
10
10
16
194J(1)(ba)
Any remuneration or commission paid to director of the company(Effective from 1 July 2012)
 NA
 NIL
10
10
17
194LA
Compensation on acquisition of immovable property
 100,000.00
 200,000.00
10
10
18
194LLA
Payment on transfer of certain immovable property other than agricultural land (Finance Minister has withdraw TDS on such transaction on 07/05/2012)
INR 50lacs in case such property is situated in a specified urban agglomeration; or
withdrawn by Finance Minister on 07/05/2012 no TDS on such transactions
withdrawn by Finance Minister no TDS on transfer of immovable property
INR 20lacs in case such property is situated in any other area