Budget 2013 Live Highlights: Finance Minister P. Chidambaram says no review of income tax slabs, focus on infrastructure

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P. Chidambaram tags China as the biggest competitor. (Express photo) P. Chidambaram tags China as the biggest competitor. (Express photo)
SummarySurcharge of 10% on super-rich, duties to be raised on cigarettes, mobile phones and SUVs: FM

Budget 2013 Live Highlights: P. Chidambaram presents one of the most highly anticipated Indian budgets of recent years on Thursday, as the government looks to rein in a bloated fiscal deficit and restore confidence in Asia's third-largest economy.

The 2013/14 budget caps an intensive seven-month campaign by the energetic Chidambaram, who was appointed last August, to turn around India's fortunes after years of policy drift and global economic turmoil:

Highlights:

* Duty free limit on gold raised to Rs 50,000 in case of male and Rs 100,000 in case of female

* Duty on mobile phones above Rs 2,000 raised from one to six per cent, based on their maximum retail prices

* Excise duty on SUVs to be increased to 30 per cent from 27 per cent, SUVs registered as taxis exempted.

* Specific excise duty on cigarettes and cigars raised by 18 per cent.

* Service tax to be levied on all a/c restaurants

* Commodities transaction tax levied on non-agriculture commodities futures contracts at 0.01 per cent

* No review of income tax slabs for this year, propose tax credit of Rs 2,000 for incomes up to Rs 5 lakh.

* Surcharge of 10 per cent for individuals whose taxable income is over Rs 1 crore

* 'Nirbhaya Fund' of Rs 1,000 crore to empower women and provide safety in the wake of the Delhi gangrape incident.

* Investor with stake of 10 per cent or less will be treated as FII; any stake more than 10 per cent will be treated as FDI

* FIIs will be allowed to participate in exchange traded currency derivatives

* National Housing Bank (NHB) to set up urban housing bank fund and Rs 2,000 crore will be allocated in this regard, says FM.

* Securities Transaction Tax (STT) reduced on equity future, mutual fund.

* Education cess to continue at 3 per cent Investor Protection Fund set up by depositories will be exempt from tax

* Contributions made to central and state government health scheme eligible to tax benefit.

* Non plan expenditure pegged at Rs 11,09,975 crore for 2013-14.

* Plan expenditure pegged at Rs 555,322 crore

* Eligibility conditions for life insurance policies of persons suffering disabilities to be liberalised

* Transactions on immovable properties usually undervalued.

* TDS of one per cent on value of properties above Rs 50 lakh. Agriculture land exempted

* Fiscal deficit will be 5.2 per cent in current year and 4.8 per cent in the next fiscal.

* Will redeem our pledge to reduce fiscal deficit to 3 per cent by 2016-17 and revenue deficit to 1.5 per cent of GDP

* Tax Administration Reform Commission to be set up to regularly review tax law applications

* In 2011-12, tax-GDP ratio was 5.5 per cent for direct taxes and 4.6 per cent for indirect taxes.

* Tax credit of Rs 2000 to be provided to every person to having income of up to Rs 5 lakh, this will benefit 1.8 crore people

* 5 to 10 per cent surcharge on domestic companies whose taxable income exceeds Rs 10 crore

* All Regional Rural Banks and cooperative banks to be e-linked by this year-end

* Insurance companies will be empowered to open branches in Tier-II cities with approval of IRDA

* KYC in banks sufficient for acquiring insurance policy.

* PSU banks to have ATMs at all their branches by March 31, 2014.

* Incubators set up by companies in academic institutions will qualify for Corporate Social Responsibility (CSR) activities

* Financial Sector Legislative Reforms Commission (FSLRC) to submit its report next month

* Standing Council of Experts in Ministry of Finance to examine transaction cost of doing business in India

* Rs 14,000 crore capital infusion into public sector banks in 2013-14

* First housing loan up to Rs 25 lakh would get additional deduction of interest of up to Rs 1 lakh in 2013-14

* Policy on exploration of shale gas on the anvil; natural gas pricing policy will be reviewed and uncertainty removed

* Govt to set up India's first women's bank as a public sector bank by October

* Coal imports during Apr-Dec 2012 crossed 100 million tonnes and expected to go up to 185 million tonnes in 2016-17

* Rajiv Gandhi Equity Scheme will be liberalised to allow first time investor to invest in Mutal Fund and equity

* Rs 10,000 crore set aside for incremental cost for National Food Security Bill over and above food subsidy.

* Four Infrastructure debt fund have been registered

* Tax free bonds issue to be allowed up to Rs 50,000 crore in 2013-14 strictly on capacity to raise funds from the market,

* Rs 5,000 crore will be made available to NABARD to finance construction of godowns and warehouses

* To provide appropriate incentives for semiconductors industry including zero customs duty on plants and machineries

* Government has decided to constitute a regulatory authority for the road sector

* Many manufacturing projects stalled due to regulatory process

* Green revolution in east India significant. Rice output increased in Assam, Odisha, Jharkhand and West Bengal; Rs 1,000 crore allocated for eastern states.

* Rs 5,387 crore to be allocated for integrated watershed programme for farmers in 2013-14, an increase from Rs 3,050 crore in the current fiscal.

* Indian Institute of Biotechnology will be set up at Ranchi.

* Average annual agriculture and allied services growth rate estimated at 3.6 per cent in 2012-13 when 250 MT foodgrains was produced

* Rs 27,049 crore allocation to the Agriculture Ministry in 2013-14

* Rs 7 lakh crore target fixed for agri credit for 2013-14 compared to Rs 5.75 lakh crore in the current year.

* Eastern Indian states to get Rs 1,000 crore allocation for improving agricultural production.

* Rs 500 crore allocated for programme on crop diversification

* P. Chidambaram says India is facing many challenges, tags China as the biggest competitor

* Average economic growth rate in 11th Plan period is 8 per cent, highest ever in any Plan period

* Job of FM is to find the resources to fund the efforts to bring minorities, the poor and others left behind in the race to make India to wealthier and a more equitable country.

* Current year's economic growth rate will be below India's potential growth rate of 8 per cent

* Economic space constraints due to high fiscal deficit, lower savings and investment and tight monetary policy

* Current account deficit continues to be high due to excessive dependence on oil, coal and gold imports and slowdown in exports

* India does not have choice between welcoming and spurning foreign investment; it is an imperative

* Battle against inflation must be fought at all fronts

* Faced with huge fiscal deficit, I have no choice but to rationalise expenditure

* We have brought down headline WPI inflation to 7 per cent and core inflation to 4.2 per cent. Food inflation is worrying

* Plan expenditure in 12th Five Year Plan revised to Rs 14,30,825 crore or 96 per cent of budgeted expenditure.

* Budget expenditure is Rs 16,65,297 crore and Plan expenditure Rs 5,55, 322 crore:

* The revised expenditure target is Rs 14,30,825 crore or 96 per cent of Budget estimate for this fiscal. In 2013-14, the budget estimate is Rs 16,65,297 crore.

* One overarching goal to provide education and skills to youth for securing jobs in the 2013-14, says FM.

* FM allocates Rs 41,561 crore for SC sub-plan; Rs 24,598 crore for tribal sub plan.

* Additional sum of Rs 200 crore to Women and Child Welfare Ministry to address issues of vulnerable women.

* Rs 3511 crore allocated to Minority Affairs Ministry which is 60 per cent of the revised estimates.

* Rs 110 crore to be allocated to the department of disability affairs, says FM.

* Rs 37,330 crore allocated for Ministry of Health & Family Welfare.

* Rs 4,727 crore to be allocated for medical education and research.

* Rs 1,069 crore to be given to Department of Ayush.

* Rs. 65,867 crore allocated to Ministry of HRD in 2013-14

* Medical colleges in six more AIIMS-like institutions to start functioning this year; Rs 1650 crore allocated for the purpose.

* Rs 5,284 crore to various Ministries for scholarships for SC/ST, OBC and minority students.

* Rs 5,284 crore to various Ministries for scholarships for SC/ST, OBC and minority students.

* Rs 13,215 crore to be provided for mid-day meal scheme

* Rs 17,700 crore provided for Integrated Child Development Scheme

* Rs 17,700 crore to be allocated for Integrated Child Development Scheme (ICDS)

* Rs 15,260 crore to be allocated to Ministry of Drinking Water and Sanitation

* Rs 80,194 crore allocation for Ministry of Rural Development in 2013-14. About Rs 33,000 crore for MGNREGA

* Rs 80,194 crore allocated for rural development schemes

* States which have completed Pradhan Mantri Gramin Sadak Yojana will be eligible for PMGSY-II, others will continue with PMGSY-I.

* Rs 14,873 crore for JNNURM for urban transportation in 2013-14 against Rs 7,880 crore in the current fiscal

* Foodgrain production in 2012-13 will be over 250 million tons

* Govt to construct power transmission system from Srinagar to Leh at the cost of Rs 1,840 crore, Rs 226 crore provided in current Budget

* DIPP and Japan's JICA preparing plan for Chennai-Bengaluru Industrial corridor

* Two new major ports to be set up in West Bengal and Andhra Pradesh, says FM.

* Oil and gas exploration policy will be reviewed and moved from profit sharing to revenue sharing

* 5 million tons Dabhol LNG import terminal to be operate at full capacity in 2013-14.

* FM asks state governments to prepare financial restructuring plan for power distribution companies at the earliest.

* SIDBI's re-financing facility to MSMEs to be doubled to Rs 10,000 crore, says FM

* Rs 500 crore would be allocated for addressing environmental issues faced by textile industry

* Concessional six per cent interest on loans to weavers

* Rs 6,000 crore to be allocated for rural housing fund in 2013-14.

* Public sector general insurance companies to set up adalats to clear disputes related to claims

* Rashtriya Swasthya Bima Yojana benefit will be extended to rickshaw pullers, auto and taxi drivers and sanitation workers

* Comprehensive social security package being evolved by convergence of several schemes run by various ministries

* We will evolve schemes for cities to take up waste to energy projects

* Small and medium companies to be allowed to listed on MSME exchange without making a public offer

* Low interest rate funds to be provided from Clean Energy Fund for green projects for a period of five years

* Generation based incentives to wind energy projects reintroduced, Rs 800 crore provided for the purpose to Ministry of New & Renewable Energy

* Constraints will not come in the way for providing additional funds for security of the nation

* Rs 2,03,672 crore, including Rs 86,741 crore capital expenditure to Defence in 2013-14.

* Grant of Rs 100 crore each to AMU (Aligarh), BHU (Varanasi) and TISS (Guwahati) and INTACH

* National Institute for Sports to train coaches to be set up at Patiala at a cost of Rs 250 crore.

* Rs 532 crore to make post offices part of core banking.

* Rs 5,87,082 crore to be transferred to states under share of taxes and non plan grants in 2013-14

* 11 lakh beneficiaries have received benefit under Direct Benefit Transfer scheme

* Modified GAAR norms to be introduced from April 1, 2016.

* No change in peak rate of customs duty for non-agriculture products.

* Direct Taxes Code (DTC) bill to be introduced in current Parliament session

* No change in basic customs duty rate of ten per cent and service tax rate of 12 per cent.

* Import duty on rice bran oilcake withdrawn.

* Series of concessions granted to Maintenance, Repair and Overhaul (MRO) business in the aviation sector.

* Import duty raised on set-top boxes from 5 to 10 per cent to safeguard interest of domestic producers

* 10 per cent customs duty to be levied on unprocessed illuminate

* Import duty raised from 75 to 100 per cent on luxury vehicles

* No countervailing duty on ships and vessels. Vocational courses offered by state-affiliated institutes to be exempted from services tax.

* One time voluntary compliance scheme for service tax defaulters to be introduced. Interest and penalties to be waived.

* Direct tax proposals to yield Rs 13,300 crore, indirect tax proposal to give Rs 4,700 crore

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