Finance minister P Chidambaram on 28th February, 2013 presented the Indian Budget which is one of the most highly anticipated Budgets of recent years. Some highlights for Indian Budget 2013-14 and Income Tax Slabs are as:
Indian Budget 2013-14 Highlights:
1. As according to Indian Budget 2013-14, The Income Tax slabs and Rates not revised.
2. Tax payers have still relief in the first bracket of 2 lakh to 5 lakh. A notional rise in the threshold exemption from 2,00, 000 to 2,20,000 by providing a tax credit of 2,000 to every person who has a total income upto 5 lakh.
3. Surcharge of 10 percent on persons whose taxable income exceeds 1 crore per year. This will apply to individuals, HUFs, firms and entities with similar tax status.
4. Surcharges ahs increased on domestic companies from 5 percent to 10 percent whose taxable income exceeds 10 crore per year.
5. The surcharge also increased from 2 percent to 5 percent on the foreign companies whose taxable income exceeds 10 crore per year.
6. In all other cases, such as dividend distribution tax or tax on distributed income, surcharge increased from 5 percent to 10 percent.
7. The additional surcharges will be in force for only one year that is Financial Year 2013-14.
8. Rajiv Gandhi Equity Saving Scheme eligibility limit raised from Rs. 10 lacs to Rs. 12 lacs.
Indirect Taxes:
1. No change in the peak rate of basic customs duty of 10 percent for non-agricultural products. No change in the normal rate of excise duty of 12 percent and the normal rate of service tax of 12 percent.
2. Reduction in duty on specified machinery for manufacture of leather and leather goods, including footwear, from 7.5 percent to 5 percent.
3. Reduction in duty on pre-forms of precious and semi-precious stones from 10 percent to 2 percent.
4. Export duty on de-oiled rice bran oil cake withdrawn.
5. Duty of 10 percent on export of unprocessed ilmenite and 5 percent on export of upgraded ilmenite.
6. On set top boxes the duty has increase from 5 percent to 10 percent.
7. Increase the duty from on raw silk from 5 percent to 15 percent.
8. Handmade carpets, Ships and vessels are exempted exempted from excise duty.
9. Increase in specific excise duty on cigarettes, cigars, cheroots and cigarillos by about 18 percent.
10. Increase in the excise duty on SUVs from 27 percent to 30 percent. The increase will not apply to SUVs registered as taxis.
11. The excise duty rate on marble increased from 30 per sq. mtr to 60 per sq mtr.