Budget 2013: Rich don’t get richer, no one gets poorer
Even though finance minister P Chidambaram did not make any changes in the current tax slabs or hike the investment limit under tax savings instruments, the tax credit of R2,000 will bring some relief to those with an annual income of up to R5 lakh. On expected lines, a one-time additional surcharge of 10% has been proposed for those earning more than R1 crore, commonly referred to as the super-rich tax.
First-time home buyers, who have taken a loan below R25 lakh, will be allowed a tax deduction on interest of up to R1 lakh in 2013-14 and this exemption will be in addition to the current exemption limit of R1.5 lakh per annum. If the limit is not exhausted, the balance can be claimed in the next fiscal. The move is clearly aimed at boosting affordable housing and raising the demand for core sector commodities like steel and cement, which have been facing sluggish growth in recent months.
To increase insurance penetration, the finance minister has said insurance companies can open branches in below tier-II cities without prior approval of the Insurance Regulatory and Development Authority. All towns with a population of 10,000 or more will have an office of Life Insurance Corporation and an office of at least one public sector non-life insurance company. Moreover, know-your client (KYC) information of banks will be sufficient to buy insurance policies, and banks will be permitted to act as insurance brokers.
IndiaFirst Life Insurance MD and CEO P Nandagopal says the proposed open architecture
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