Highlights of Indian Union Budget 2013-2014

Tax credit of Rs. 2,000 for income upto Rs. 5 lakh Surcharge of 10 per cent for taxable incomes above Rs. 1 crore, No review of tax slabs Excise duty on SUVs to be increased to 30 per cent from 27 per cent, SUVs registered as taxis exempted Commodities transaction tax levied on nonagriculture commodities futures contracts at 0.01 per cent Rs 532 crore to make post offices part of core banking Direct Taxes Code (DTC) bill to be introduced in current Parliament session Duty-free limits raised to Rs 50000 for men and Rs 1 lakh for women 18% rise in excise duty on Cigarettes, cigars and cheroots Service tax on all A/C restaurants Royalty tax hiked from 10% to 25% Tax Deducted at Source to be fixed at 1% on land deals over Rs 50 lakh No change in peak custom, excise rates. 5 to 10 per cent surcharge on domestic companies whose taxable income exceeds Rs 10 crore 11 lakh beneficiaries have received benefit under Direct Benefit Transfer scheme. Direct Benefit Transfer (DBT) Scheme to be rolled out throughout the country during the term of UPA Government. Modified GAAR norms to be introduced from April 1, 2016. Administration reform commission proposed Rs 5,87,082 crore to be transferred to states under share of taxes and non plan grants in 201314 "To the women of India - we have a collective responsibility to ensure the dignity and safety of women. Recent incidents have cast a long dark shadow on our credentials. As more women enter public spaces...there are more reports of violence against them. We stand in solidarity with our girl children. We pledge to everything possible to keep them secure. A number of measures are in the works and they will be taken up Government and Non-government sourcesI will set up a fund of Rs 1000 crore to achieve this end. Minstry of Women will come up with a plan on how to use these funds." Rs. 1,000 crore each for women, youth funds

Rs. 1,000 crore for Nirbhaya fund Promise to women, youth and senior citizens 289 more cities to get private radio FM stations Grant of Rs 100 crore each to AMU (Aligarh), BHU (Varanasi) and TISS (Guwahati) and INTACH "Rs 6275 crore to Ministry of Technology, Rs 5216 crore to Department of Space, Rs 5280 crore to Department of Energy. These amounts are substantial increases." Rs. 2 trillion for defence sector First home loan from a bank or housing finance corporation upto Rs. 25 lakh entitled to additional deduction of interest upto Rs. 1 lakh. Proposal to launch Inflation Indexed Bonds or Inflation Indexed National Security Certificates to protect savings from inflation. On oil and gas exploration policy, the Budget proposes to move from the present profit sharing mechanism to revenue sharing. Natural gas pricing policy will be reviewed. Insurance companies can now open branches in Tier 2 cities and below without prior approval. All towns of India with a population of 10000 or more will have an LIC branch and one other public sector insurance company. Income limit for the tax-saving Rajiv Gandhi Equity Savings Scheme is raised to Rs. 12 lakh from Rs. 10 lakh All public-sector banks have assured the Finance Minister that they will all have ATMs in their branch areas by 2014 India's first women's bank as a PSU proposed, Rs. 1,000 crore working capital announced India Infrastructure Finance Corporation (IIFC), in partnership with ADB will help infrastructure companies to access bond market to tap long term funds. Regulatory authority to be set up for road sector Four Infrastructure debt funds have been registered Rs 7 lakh crore target fixed for agri credit for 201314 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. Green revolution in east India significant. Rice output increased in Assam, Odisha, Jharkhand and West Bengal;

Rs 500 crore allocated for programme on crop diversification ICDS gets Rs. 17,700 crore. Average annual growth rate of agriculture and allied services estimated at 3.6 per cent in 201213 when 250 MT foodgrains was produced Rs 27,049 crore allocation to the Agriculture Ministry in 201314 The target for farm credit for 2013-14 has been set at Rs. 7,00,000 crore against Rs. 5,75,000 crore during the current year. Rs 14,873 crore for JNNURM for urban transportation in 201314 against Rs 7,880 crore in the current fiscal Foodgrain production in 201213 will be over 250 million tons 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 201314. About Rs 33,000 crore for MGNREGA Rs. 5,000 crore for NABARD for agri storage facilities Godowns to be constructed with help of panchayats. Food grain productions have been raised drastically and only increase with each year. Rs 17,700 crore to be allocated for Integrated Child Development Scheme (ICDS): FM. National Food security bill is a promise of the UPA government. I hope the bill be passed as soon as possible. I have set apart Rs 10,000 crore to the expected cost of the act. An Institute for agricultural biotechnology will be set up in Ranchi, Jharkhand. Rs 1069 crore allocated to Department of Aryush: FM Rs 4,727 crore to be allocated for medical education and research. Rs 1,069 crore to be given to Department of Ayush. Medical colleges in six more AIIMSlike institutions to start functioning this year; Rs 1650 crore allocated for the purpose. Rs 37,330 crore allocated for Ministry of Health & Family Welfare. Rs 110 crore to be allocated to the department of disability affairs, says FM. 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 13215 crore for mid-day meal programme: Chidambaram The idea of setting up a PNGSY-2 causes uproar in the Parliament. The minister is interrupted the round of shouting, who clarifies that states that have completed PNGSY -1 will get the second version, the rest will continue under the first version The Right to Education Act is firmly in place, says Chidambaram, while announcing Rs. 27,250 crore to Sarva Shikhsa Abhiyaan in FY14. The Human Resources Development ministry meanwhile gets Rs. 65,867 crore, a rise of 17% from revised estimates. "Government committed to reconstruction of Nalanda University" - But no specific funds for the project was announced. Chidambaram announces additional fund allocation of Rs 200 crore to the Women and Child Development Ministry. He says women 'belonging to the most vulnerable groups must be able to live with self-esteem and dignity'. 169 crore given for development of Ayurveda, Siddha, Unani (Natural medicine) and homeopathy Rs 41,561 crore for SC plan and Rs 24,598 crore for tribal plan. The move comes with a strong statement Plan Expenditure placed at Rs. 5,55,322 crore. It is 33.3 percent of the total expenditure while Non Plan Expenditure is estimated at Rs. 11,09,975 crore. The plan expenditure in 2013-14 will be 29.4 percent more than the RE of the year 2012-13. Fiscal Deficit for 2013-14 is pegged at 4.8 percent of GDP. The Revenue Deficit will be 3.3 percent for the same period. On oil and gas exploration policy, the Budget proposes to move from the present profit sharing mechanism to revenue sharing. Natural gas pricing policy will be reviewed. On coal, the Budget proposes adoption of a policy of pooled pricing. Benefits or preferences enjoyed by MSME to continue upto three years after they grow out of this category. Refinancing capacity of SIDBI raised to Rs. 10,000 crore. Technology Upgradation Fund Scheme (TUFS) for textile to continue in 12th Plan with an investment target of Rs. 1,51,000 crore. Rs. 14,000 crore will be provided to public sector banks for capital infusion in 2013-14.

A grant of Rs. 100 crore each has been made to 4 institutions of excellence including Aligarh Muslim University, Banaras Hindu University, Tata Institute of Social Sciences, Guwahati and Indian National Trust for Art and Cultural Heritage (INTACH). A surcharge of 10 pe rcent on persons (other than companies) whose taxable income exceeds Rs.1 crore have been levied. Generation based incentives to wind energy projects reintroduced, Rs 800 crore provided for the purpose to Ministry of New & Renewable Energy Rs 14,000 crore capital infusion into public sector banks in 201314 Standing Council of Experts in Ministry of Finance to examine transaction cost of doing business in India Financial Sector Legislative Reforms Commission (FSLRC) to submit its report next month Incubators set up by companies in academic institutions will qualify for Corporate Social Responsibility (CSR) activities Rs 500 crore would be allocated for addressing environmental issues faced by textile industry Concessional six per cent interest on loans to weavers. SEBI will simplify procedures for entry of foreign portfolio investors SIDBIs refinancing facility to MSMEs to be doubled to Rs 10,000 crore 5 million tons Dabhol LNG import terminal to be operated at full capacity in 201314 Coal imports during AprDec 2012 crossed 100 million tonnes and expected to go up to 185 million tonnes in 201617, Government will provide Rs 14000-crore capital infusion in state-run (public-sector) banks in 2013/14 Oil and gas exploration policy will be reviewed and moved from profit sharing to revenue sharing Policy on exploration of shale gas on the anvil; natural gas pricing policy will be reviewed and uncertainty removed Rs. 9,000 crore earmarked as the first installment of balance of CST compensations to different States/UTs. Govt to construct power transmission system from Srinagar to Leh at the cost of Rs 1,840 crore, Rs 226 crore provided Rs 2400 crore for textile technology upgradation

Two new ports in West Bengal and Andhra Pradesh Many manufacturing projects stalled due to regulatory process A company investing Rs 100 crore or more in plant and machinery in April 1, 2013 to March 31, 2015 will be allowed 15 per cent investment deduction allowance apart from depreciation To provide appropriate incentives for semiconductors industry including zero customs duty on plants and machineries. Fresh push for Bangalore-Chennai industrial corridor. Minister says the corridor to be developed in co-operation with the Japanese. DIPP and Japans JICA preparing plan for Chennai Bengaluru Industrial corridor Power sector gets a nod - States encouraged to restructure financial systems to improve sector as a whole and sign MoUs for the same effect. Rs 25,000 cr to be raised through tax free bonds: Chidambaram "Doing business in India must be seen as easy, friendly and mutually beneficial" - Second reference to increasing FDI in India. Government seems to betting heavily on a large FDI influx to help with the deficient "We will use innovative and new financial methods to increase investment in infrastructure," says the Minister. New steps have been announced to increase availability and amount of debts available for infrastructure projects. The revised expenditure target is Rs 14,30,825 crore or 96 per cent of Budget estimate for this fiscal. In 201314, the budget estimate is Rs 16,65,297 crore. Budget expenditure is Rs 16,65,297 crore and Plan expenditure Rs 5,55, 322 crore: FM. Plan expenditure in 12th Five Year Plan revised to Rs 14,30,825 crore or 96 per cent of budgeted expenditure We have brought down headline WPI inflation to 7 per cent and core inflation to 4.2 per cent. Food inflation is worrying: FM. 24.3 % hike in expenditure for health care both rural and urban health mission. 12.5 % hike in Scheduled caste and Scheduled tribe sub-plans Overarching goal to create opportunities for youth to acquire skills for self-employment All flagship programmes adequately funded. Ministries must take it forward.

Average economic growth rate in 11th Plan period is 8 per cent, highest ever in any Plan period. Battle against inflation must be fought on all counts. Foreign investment is imperative Current account definict high due to dependence on oil , high gold imports Need $75billion to bridge CAD Present economic space is constrained by economic climate and tight monetary policy

FISCAL DEFICIT * Fiscal deficit seen at 5.2 point of GDP in 2012/13 * Fiscal deficit seen at 4.8 point of GDP in 2013/14 * Faced with huge fiscal deficit, India had no choice but to rationalize expenditure BORROWING * Gross market borrowing seen at 6.29 trillion rupees in 2013/14 * Net market borrowing seen at 4.84 trillion rupees in 2013/14 * Short-term borrowing seen at 198.44 billion rupees in 2013/14 * To buy back 500 billion rupees worth of bonds in 2013/14 SUBSIDIES * 2013/14 major subsidies bill estimated at 2.48 trillion rupees from 1.82 trillion rupees * Petroleum subsidy seen at 650 billion rupees in 2013/14 * Revised petroleum subsidy for 2012/13 at 968.8 billion rupees * Estimated 900 billion rupees spending on food subsidies in 2013/14 * Revised food subsidies at 850 billion rupees in 2012/13 * Revised 2012/13 fertiliser subsidy at 659.7 billion rupees GROWTH * India faces challenge of getting back to its potential growth rate of 8 point * India must unhesitatingly embrace growth as highest goal

SPENDING * Total budget expenditure seen at 16.65 trillion rupees in 2013/14 * Non-plan expenditure estimated at about 11.1 trillion rupees in 2013/14 * India's 2013/14 plan expenditure seen at 5.55 trillion rupees * Revised estimate for total expenditure is 14.3 trillion rupees in 2012/13, which is 96 point of budget estimate * Set aside 100 billion rupees towards spending on food subsidies in 2013/14 REVENUE * Expect 133 billion rupees through direct tax proposals in 2013/14 * Expect 47 billion rupees through indirect tax proposals in 2013/14 * Target 558.14 billion rupees from stake sales in state-run firms in 2013/14 * Expect revenue of 408.5 bln rupees from airwave surcharges, auction of telecom spectrum, licence fees 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 point on rich taxpayers with annual income of more than 10 million rupees a year * To increase surcharge to 10 point on domestic companies with annual income of more than 100 million rupees * For foreign companies, who pay the higher rate of corporate tax, the surcharge will increase from 2 pct to 5 per cent. * To continue 15 point tax concession on dividend received by India companies from foreign units for one more year * Propose to impose withholding tax of 20 point on profit distribution to shareholders * Amnesty on service tax non-compliance from 2007

* 10 billion rupees for first installment of balance of GST (Goods and Services Tax) payment * Propose to reduce securities transaction tax on equity futures to 0.01 point from 0.017 point * Time to introduce commodities transaction tax (CTT) * CTT on non-agriculture futures contracts at 0.01 point CORPORATE SECTOR AND MARKETS * To issue inflation-indexed bonds * Proposes capital allowance of 15 point 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 point stake in a company will be regarded as FII, more than 10 point 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 * To cut factory gate duty on trucks to 13 pct from 14 pct POWER AND ENERGY SECTOR * Zero customs duty for electrical plants and machinery * Move to revenue-sharing from profit-sharing policy in oil and gas sector * To equalise duties on steam and bituminous coal to 2 point customs duty and 2 point cvd (countervailing duty) FOREIGN TRADE * To cut duty on exports of precious and semi-precious stones to 2 point from 10 point * No duty on import of ships, vessels BANKING * To provide 140 billion rupees capital infusion in state-run banks in 2013/14 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

Budget Highlights by moneycontrol.com

he Union finance minister presented the HYPERLINK "http://www.moneycontrol.com/budget2013/"

Budget for the year 2013-14. Some of the key points that were highlighted by Chidambaram in the Budget are: - No change in slabs and rate for personal income tax. - 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. - Commodities transaction tax levied on non-agriculture commodities futures contracts at 0.01 per cent. - 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.

- Duty free limit on HYPERLINK "http://www.moneycontrol.com/commodity/gold-price.html" \o "gold" gold raised to Rs 50,000 in case of male and Rs 100,000 in case of female. - No countervailing duty on ships and vessels. - Specific excise duty on cigarettes and cigars raised by 18 per cent. - Excise duty on SUVs to be increased to 30 per cent from 27 per cent, SUVs registered as taxis exempted. - Vocational courses offered by state-affiliated institutes to be exempted from services tax. - Duty on mobiles above Rs 2,000 raised from one to six per cent, based on their maximum retail prices. - Service tax to be levied on all a/c restaurants. - 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. - Education cess to continue at 3 per cent. - Contributions made to central and state government health scheme eligible to tax benefit. - Eligibility conditions for life insurance policies of persons suffering disabilities to be liberalised. - Investor Protection Fund set up by depositories will be exempt from tax. - Transactions on immovable properties usually undervalued. - TDS of one per cent on value of properties above Rs 50 lakh. Agriculture land exempted. - Securities Transaction Tax (STT) reduced on equity future, mutual fund. - 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. - Surcharge of 10 per cent for individuals whose taxable income is over Rs 1 crore.

- Plan expenditure pegged at Rs 555,322 crore. - Non plan expenditure pegged at Rs 11,09,975 crore for 2013-14. - 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 201314. - Comprehensive social security package being evolved by convergence of several schemes run by various ministries. - 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. - 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. - Concessional six per cent interest on loans to weavers. - Financial Sector Legislative Reforms Commission (FSLRC) to submit its report next month. - 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. - 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. - 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. - CFM allocates Rs 41,561 crore for SC sub-plan; Rs 24,598 crore for tribal sub plan. - 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. - Rs 37,330 crore allocated for Ministry of Health & Family Welfare. - Rs 1069 crore allocated to Department of Aryush. - Rs 4,727 crore to be allocated for medical education and research. Rs 1,069 crore to be given to Department of Ayush. - In the Budget 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 13,215 crore to be provided for mid-day meal scheme. - Rs 17,700 crore provided for Integrated Child Development Scheme. - Rs 15,260 crore to be allocated to Ministry of Drinking Water and Sanitation.

- Rs 17,700 crore to be allocated for Integrated Child Development Scheme (ICDS. - 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 PMGSYII, 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. - Average annual growth rate of agriculture and allied services estimated at 3.6 per cent in 201213 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 agriculture 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. - Additional sum of Rs 200 crore to Women and Child Welfare Ministry to address issues of vulnerable women. - 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. - 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.

- Government has decided to constitute a regulatory authority for the road sector. - Many manufacturing projects stalled due to regulatory process. - A company investing Rs 100 crore or more in plant and machinery in April 1, 2013 to March 31, 2015 will be allowed 15 per cent investment deduction allowance apart from depreciation. - Rajiv Gandhi Equity Scheme will be liberalised to allow first time investor to invest in Mutal Fund and equity. - First housing loan up to Rs 25 lakh would get additional deduction of interest of up to Rs 1 lakh in 2013-14. - 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. - 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. - 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 - Oil and gas exploration policy will be reviewed and moved from profit sharing to revenue sharing. - 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. - 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. - Incubators set up by companies in academic institutions will qualify for Corporate Social Responsibility (CSR) activities.

- Rs 500 crore would be allocated for addressing environmental issues faced by textile industry. - Concessional six per cent interest on loans to weavers. - Financial Sector Legislative Reforms Commission (FSLRC) to submit its report next month. - Rajiv Gandhi Equity Scheme will be liberalised to allow first time investor to invest in Mutal Fund and equity. - First housing loan up to Rs 25 lakh would get additional deduction of interest of up to Rs 1 lakh in 2013-14. - 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. - PSU banks to have ATMs at all their branches by March 31, 2014. - Rs 6,000 crore to be allocated for rural housing fund in 2013-14. - 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. - National Housing Bank (NHB) to set up urban housing bank fund and Rs 2,000 crore will be allocated in this regard. - Public sector general insurance companies to set up adalts 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. - 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. - 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.

Tax Highlights of Union Budget 2013-14

Finance Minister P Chidambaram has proposed an additional tax for the 'super rich'. Following are the highlights on how the Finance Minister has juggled with various taxes in his Union Budget 2013. - No change in incometax slabs for personal income. - A tax credit of Rs. 2,000 to every person with an income of up to Rs. 5 lakh per annum. - Proposal to incorporate GAAR recommendations To applicable from 1.04.16 - A surcharge of 10 per cent on those who have a taxable income of more than Rs. 1 crore per annum. - Indian company not liable to pay any dividend distribution tax for distribution of income from a foreign subsidiary. - Excise duty on non-taxi SUVs hiked to 30 per cent from 27 per cent - Import duty on luxury two-wheelers hiked to 75 per cent from 60 per cent - Import duty on luxury cars hiked to 100 per cent from 75 per cent - Custom duty benefit on hybrid/electric cars extended up to March 2015 - Current surcharge for corporate taxes has been increased from 5 per cent to 10 per cent, but only for one year. - Tax deducted at source (TDS) proposed on the value of an immovable property as transaction on such properties are usually undervalued. - TDS of 1 per cent on land deals worth over Rs. 50 lakh. - Proposal to levy commodities transation tax (CTT) on non-agricultural commodity derivatives at 0.01 per cent. - Royalty and technical expertise tax increased from 10 per cent to 25 per cent, where DTAA doesn't apply - Houses above 2,000 sq ft or costing more than Rs. 1 crore will have lower abatement of 70 per cent as against 75 per cent. This will impact cost of houses by 0.6 per cent. - Import duty on set-top boxes hiked from 5 pee cent to 10 per cent. - 2 per cent customs duty imposed on coal imports. - Securities Transaction Tax (STT) cut on equity futures to 1 bps from 1.7 bps

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