The Union Finance Minister Mr. P Chidambaram presented the Union Budget 2013-14 in the Lok Sabha on 28th February, 2013. The segment herein below highlights the proposals made in the Budget.DIRECT TAXES 1. Slab rates There is no change in the slabs or the rates of Personal Income tax. However, there is a relief of INR 2000/- to the individuals having total income upto INR 5,00,000/-. The relief is therefore given to the tax payers in the first Income bracket of INR 2,00,000/- to INR 5,00,000/. 2. Surcharge Surcharge of 10% will be applicable for individuals having taxable incomes above INR 1,00,00,000/-. The rate of surcharge is increased from 5% to 10% for domestic companies having taxable income above INR 10,00,00,000/-. The rate of surcharge is increased from 2% to 5% for the foreign companies having taxable income above INR 10,00,00,000/-. The rate of surcharge for all the other cases viz. Dividend Distribution Tax [DDT] or Tax on Distribution Income will increase from 5% to 10%. 3. Deductions Akin to the Central Government Health Scheme, the contributions made to schemes of Central and State Governments will be eligible for deduction under Section 80D of the Income Tax Act, 1961. The donations made to National Children Fund will be eligible for 100% deduction under Section 80G of Income Tax Act. 4. Relaxation of premium rate for disabled The Relaxation in the eligibility conditions of Life Insurance Policies for persons suffering from disability or certain ailment has been proposed by increasing the premium rate from 10% to 15% 5. Investment allowance to Manufacturing Companies An investment allowance at the rate of 15% has been proposed for the manufacturing companies who invest more than INR 100 Crore in plant and machinery during the period 1.4.2013 to 31.3.2015. 6. Concessional Tax The concessional tax on dividend received by an Indian company from its foreign subsidiary shall continue at the rate of 15 per cent for one more year. 7. Exemption of Securitisation Trust from Income Tax The Securitisation Trust will be exempted from the purview of Income Tax. The tax, at the specified rates) will be levied only at the time of distribution of income for companies or individual or HUF as the case may be. The tax rates shall be 30% in the case of companies and 25% in the case of individual or HUF. 8. Extension of date for power sector projects For the purpose of availing benefit under Section 80-IA, the Eligible Date for the projects in the power sector...
|Author:||Mr Megha Kapoor|
|Profession:||Singh & Associates|
To continue readingREQUEST YOUR FREE TRIAL