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."

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