Budget 2013 Dtp- New

7/29/2019 Budget 2013 Dtp- New

1/23

LOGO

16 March 2013


2/23

No change in exemption limit or slab rate

No change proposed in the present slab or tax

rates which is currently as under:

Tax Rate Current Slabs Rs.

Nil Upto 200,000*

10% 200,001

500,00020% 500,001 1,000,000

30% Above 1,000,000

Basic exemption limit for senior citizens and very senior

citizens is Rs. 250,000 and Rs. 500,000 respectively

Impact on Personal finance--NEUTRAL

2


3/23

Rebate up to Rs. 2,000from tax payableavailable to residentindividuals whose totalincome does not exceedRs. 5 lakhs.

Impact on Personalfinance--POSITIVE

3

Tax Rebate Rs.2000 upto Rs.5 lac income


4/23

Surcharge proposed atthe rate of 10% if incomeexceeds Rs. 100 lakhs or

Rs.1 crore.

Impact on Personal

finance of super rich--N E G A T I V E

4

Surcharge on super rich


5/23

Super Rich Person-How many are there as on

date ? According to FM, the

number is 42,800

KPMGInternationalreported-1,25,000 High Networth

Indians [with investiblewealth of $1 million(Rs.5.5 crore) plus houseand durables] .

with the luxury carmarket touching some27,000 cars a year, thenumber of super richcannot be as low as 42,800

5


6/23

Impetus to first-time home buyers

Additional deduction of Rs. 1

lakh(over and above theexisting Rs. 1.5 lakhs) oninterest on housing loan

Housing loan should notexceed Rs. 25 lakhs and

valueof property notexceeding Rs. 40lakhs

Only for loans sanctionedduring FY2013-14

Can be carried forward to

next year if not fully utilized Impact on Personal

finance--POSITIVE

6


7/23

Rajeev Gandhi Equity Savings Scheme liberalised

Deduction presently

available to new retailinvestors for investment inequity share

extended to includeinvestment in equityoriented mutual fund

Eligible limit of gross totalincome of the investor forthis purpose is proposed tobe enhanced from Rs. 10lakhs to Rs. 12 lakhs

Deduction available for threeconsecutive years

Impact on Personalfinance--POSITIVE

7


8/23

TDS on Transfer of immovable property

Consideration for

transfer of any

immovable propertyof Rs. 50 lakhs and

above attractswithholding tax i.e.

TDS @ 1% -

Applicable from 1

June 2013Impact on Personal

finance--NEGATIVE

8


9/23

Sale of house-tax on higher value

Sale consideration on the

transfer of immovableproperty when held asstock in trade

to be the higher of the

stamp duty value or theactual consideration incomputation of businessprofit

Impact on Personalfinance--NEGATIVE

9


10/23

Purchase of an Immovable Property for inadequate

consideration-consequences

Purchase of immovable

property by individual orHUFfor inadequate

consideration(Consideration minus

Stamp duty value > Rs.50,000)

taxable in the hands ofthe BUYER as GIFT TONON RELATIVES

Impact on Personalfinance--NEGATIVE

10


11/23

Increase in surcharge for

corporates

Particulars Below Rs.1 crore Above Rs.1 crore

up toRs.10 crores

Above Rs.10 crores

SurchargeRate

EffectiveTax rate

SurchargeRate

Effectivetax rate

SurchargeRate

Effectivetax rate

Domestic Nil(Nil)

30.90%(30.90%)

5%(5%)

32.45%(32.45

%)

10%(5%)

33.99%(32.45%)

Foreign Nil(Nil)

41.20%(41.20%)

2%(2%)

42.02%(42.02

%)

5%(2%)

43.26%(42.02%)

11

Note:

Figures in bracket refers to the current rates

Education cess of 3% has been considered for determining the

effective tax rates

Impact on CORPORATE finance--NEGATIVE

I i f i i ifi d


12/23

Incentive for investment in specifiedplant or machinery

Applicable to a Companyengaged in the manufacture ofarticle or thing and whichinvests more than Rs. 100crores in specified plant ormachinery.

Investment to be donebetween1 April 2013 to 31

March 2015. Deduction of 15% on actual cost

of plant or machinery acquiredand installed

Assets to be held for a period of5years, failing which deduction

availed shall be treated asincome Impact on CORPORATE

finance--POSITIVE

12

E i f l f


13/23

Extension of sunset clause for powersector

Sunset date for the

power sector tocommence eligibleactivity extended from

31 March 2013 to 31March 2014

Impact on

CORPORATE finance-

-POSITIVE

13


14/23

Additional tax on Buyback of shares

Additional tax of 20% on distributed income in the

course of buyback of shares by unlistedcompanies, payable by such company

Distributed income is the consideration for

buyback less issue price of the sharesBuyback consideration exempt in the hands of the

shareholder

Impact on CORPORATE finance--NEGATIVE

14

D d ti f l t f


15/23

Deduction for employment of newworkmen

Presently, deduction

available for additionalwages paid to newregular workmenemployed inmanufacturing or

production activities Amendment proposed

to restrict the deductiononly in respect ofworkmen employed in

manufacturing activitiescarried out in a factoryImpact on all industries

finance--NEGATIVE

15

C i l t f ithh ldi t


16/23

Concessional rate of withholding taxon interest

Interest income for a

non-residentfrom the rupee

denominated long-terminfrastructure bonds of

an Indian company eligible for lower rate of

withholding tax @ 5% -

Applicable from 1 June

2013Impact on Non-

residents finance--POSITIVE

16


17/23

Rate of tax on royalty and feesfor technical services payable to An NRI

non-residentRate of withholding on

royalty and fees fortechnical servicespayable to a non-resident increased from

10% to 25% Lower rate as per taxtreaty can be availed,subject to tax residencycertificate

Impact on Non-residents finance--NEGATIVE

17

Di id d f ifi d f i


18/23

Dividends from specified foreigncompany

Beneficial tax rate of

15% on dividendincome from specifiedforeign company

extended by 1 year till

31 March 2014

Impact on Corporate

finance--POSITIVE

18


19/23

Tax Proposals

Commodities transactiontax -Introduced at the rateof 0.01% on commodityderivatives (exceptagricultural commodities)

Securities transaction tax Existing rates on taxablesecurities transactions

reduced

Impact on Finance for all

Impact on finance-Negative

Impact on Finance-POSITIVE

Other Taxation Proposals

19


20/23

Tax Proposals All restaurants having air-

conditioning or central air-heating facility liable to servicetax

Service tax exemption on thefollowing have been withdrawn:

1. Vehicle parking to generalpublic

2. Aircraft repair or maintenanceservices provided togovernment, a local authorityor governmental authority

3. Renting of immovable propertyand auxiliary education services

provided by educationalinstitution

4. Charities for advancement ofany other object of generalpublic utility

Impact on finance for all

All service taxproposals are

having only

NEGATIVE IMPACT

Service tax proposals

20


21/23

What the Budget provided?

no high profile announcements or

big recovery plans outlined

commitment shown towards the fiscalconsolidation plan

Planned expenditure has increased by almost 30%from the last year

to target fiscal deficit of 4.8% in 2013-14

Fiscal deficit for 2012-13 has been limited to 5.2%

21


22/23

Backdrop of Budget

challenging macroeconomic environment

lowest GDP growth in a decade. 5.5% in last

quarter.

a depressed global economic outlook

prevalence of domestic policy bottlenecks High fiscal deficit

expansionary subsidies and

worsening current account balance. Resulted in the slowdown.

22


23/23

LOGO

CA.K.HariharanPartner

M/s.Suri & Co

Chartered Accountants, Coimbatore

98-940-41901

[email protected]

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

Documents

Budget 2013 Dtp- New