1. 3/6/2013 PANKAJ KUMAR, IIBM PATNA 1

2. •MAIN PROVISION
BUDGET
• There is no changes in Income Tax rates
or slabs, Rs 2000 credit for those earning
up to Rs 5 lakh per annum, Union finance
Minister said in Parliament while reading
out the Budget.
• There will be a surcharge on those
earning above Rs 1 crore.
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3. HIGHLIGHTS
• 12% excise duty imposed on branded
retail garments.
• Surcharge of 10 percent for taxable
incomes above Rs. 1 crore.
• No review of tax slabs.
• Tax credit of Rs. 2,000 for income up
to Rs. 5 lakh.
• Commodity transaction tax for non-
agri commodity trading.PANKAJ KUMAR, IIBM PATNA
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4. CONT
…
• Tax Deducted at Source to be fixed at
1% on land deals over Rs 50 lakh.
• 30% excise duty hike on SUVs.
• 6% excise duty hike on mobiles above
Rs. 2,000
• Branded silver Jewellery fully exempt
from excise duty.
• 5% customs duty exempted on
equipment for fertilizer PANKAJ KUMAR, IIBM PATNA
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5. CONT
…
• New Rajiv Gandhi Equity
scheme to allow for 50%
deduction to small investors.
• Banks are open for the women.
• Raises Income Tax exemption
limit to Rs 2 lakhs from Rs 1.8
lakhs
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7. • Economic growth from 3.9 per cent in 2011 to 3.2 per cent in
2012.
• ‘Higher growth leading to inclusive and sustainable
development’ to be the mool mantra.
• Between 2004 and 2008, and again in 2009-10 and 2010-11
the growth rate was over 8 per cent and crossed 9 per cent
in four of those six years. KUMAR, IIBM PATNA
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9. • Total expenditure of `16,65,297 crore and of Plan
Expenditure at `5,55,322 crore.
• Plan Expenditure in 2013-14 to grow at 29.4 per cent
over Revised Estimates for the current year.
• Budget for 2013-14 to have one overarching goal of
creating opportunities for our youth to acquire
education and skills that will get them decent jobs or
self-employment.
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10. Rupees `97,134 crore allocated for programmes
relating to women and `77,236 crore allocated for
programmes relating to children.
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11. • New National Health Mission will get an allocation of `21,239
crore
• `4,727 crore for medical education, training and research.
• `27,258 crore provided for Sarva Shiksha Abhiyaan (SSA).
• Mid Day Meal Scheme (MDM) to PATNA provided `13,215 crore.
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12. Agriculture
• Average annual growth rate of agriculture and allied sector
was 3.6% during XI Plan against 2.5% and 2.4% in IX and X
plans respectively.
• For 2013-14, target of agriculturalPATNA
3/6/2013 PANKAJ KUMAR, IIBM credit kept at `7 lakh crore.
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13. Allocation of `80,194 crore in 2013-14 for Ministry of
Rural Development marking an increase of 46% over RE
2012-13.
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14. Additional provision of Rs. 10,000 crore for National Food
Security Act.
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15. • Infrastructure tax-free bond of `50,000 crore in 2013-14
• Build roads in North eastern states and connect them to Myanmar
with assistance from WB & ADB
• `5,000 crore to NABARD to finance construction for warehousing.
• 3000 kms of road projects in Gujarat, Madhya
Pradesh, Maharashtra, Rajasthan and Uttar Pradesh will be awarded
in the first six months of 2013-14.
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17. • No case to revise either the slabs or the rates of Personal Income
Tax.
• Surcharge of 10 percent on persons (other than companies) whose
taxable income exceed `1 crore to augment revenues.
• TDS at the rate of 1 percent on the value of the transfer of
immovable properties where consideration exceeds `50 lakhs.
• No change in the normal rates of 12 percent for excise duty and
service tax.
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18. • Duty of 10 percent on export of unprocessed ilmenite
and 5 percent on export on ungraded ilmenite.
• Duty on Set Top Boxes increased from 5 to10 percent.
• Duty on raw silk increased from 5 to 15 percent.
• Duty free gold limit increased to `50,000 in case of male
passenger and `1,00,000 in case of a female passenger
subject to conditions.
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19. • Relief to readymade garment industry.
• Spun yarn made of man made fiber, duty of 12
percent at the fiber stage.
• Excise duty on SUVs increased from 27 to 30 percent.
• Duty on mobile phones priced at more than `2000
raised to 6 percent.
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20. ANALYSIS OF BUDGET
•This Budget is the sixth in the series whish is designed to get
country back on track.
•The Government’s task is not made any easier by the state of the
global economic environment where there is little growth.
• At the start of the process to redress our budgetary position, return
to growth could have been anticipated.
•Such growth in itself would have cut unemployment, increased
taxes and addressed part of the issue.
•It is useful to consider what the Government must still achieve if we
are to eliminate the Budget deficit.
• Corrections of €3.5 billion, €3.1 billion and€2.0
billion are required over the years 2013 to 2015 to get the deficit
down to 2.9%-a requirement of being in the Euro.
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21. POSITIVE ANALYSIS
• Excise duty on readymade garments was
exempted.
• Net increase in MAT rate by 0.95 percent for Rs 10
crore book profits.
• There will be Inc scrutiny for foreign investor. This
will include the Mauritius route.
• There won't be any extension of 80IA deduction
for Hospitals and Hotels.
• No Cascading effect of DDT (dividend distribution
tax) on dividend recorod from foreign companies.
• 15 percent tax on dividends from overseas
company is now extended by a year.
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22. NEGATIVE ANALYSIS
• The major negative for small investor is the dividend
distribution tax, which has been hiked for the debt fund.
• For the non-liquid funds also the dividend distribution tax
has been hiked to 25 percent. Over and above there is an
education cess and also there is a surcharge, which also
has been hiked from 5 percent to 10 percent.
• These funds are very popular especially for those who
want regular income. What has happened is whether one
is a tax payer or not a tax payer or 10 percent or 20
percent, the moment one opt for a dividend distribution or
a monthly dividend or a quarterly dividend one end up
paying almost 28-29 percent as a dividend distribution tax.
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23. Conclusion text of the 2013 budget:-
 This is among the series of budgets that will propel this beloved
nation towards achieving the national vision.
 With the permission of the Almighty, and the support of the
rakyat, god willing we will witness six more budgets to be tabled
by the Barisan Nasional Government before transforming
Malaysia from middle to a high income and developed country.
 As a party with the mandate, we urge the rakyat to evaluate
critically and rationally each and every successful record of the
Barisan Nasional. Over the last 55 years, the Barisan Nasional
Government and the earlier Perikatan Government have created
a better quality of life for the rakyat.
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