1. Budget 2013-14
(Highlights ,
Provisions & Analysis)
By:
Ankita Bharti
Rajeev Kumar
Manish Ranjan

2. Budget (2013-14) – At A glAnce
• Being the last budget of the current government ;UPA –II, and also
before the next upcoming Lok Sabha elections in 2014,this budget
is was surely seen as a last trump card to make their vote bank
strong and to send some positive vibes in the masses.
• In this budget the government has tried to win hearts of masses
with it’s policies but also tried to fill financial gaps through some
direct or back door strategies.
• Looking forward we would try to focus on some highlights and
provisions made in this budget and try to analyse that where this
budget stands.

3. Budget (2013-14) – HigHligHts
• The current slabs which were introduced last year are retained and
there is no case of revision.
Serial Number Salary Slab Tax Applied
1) Rs. 2,00,000/- Nil
2) Rs. 2,00,000 -Rs.
5,00,000/-
10 % and the
amount by which
the total income
exceeds Rs.
2,00,000/-
3) Rs. 5,00,000- Rs.
10,00,000/-
30,000/- plus 20
per cent of the
amount by which
the total income
exceeds Rs.

4. Budget (2013-14) – HigHligHts
Serial No. Salary Slab Tax Percentage
4) Rs. 10,00,000/- Rs. 1,30,000/- plus 30
per cent of the amount
by which the total
income exceeds Rs.
10,00,000/-.
•These are the Normal Rates of tax for the financial year
2012-13 and assessment year 2013-14 but the same slab
is maintained for this year as well with minute inclusions of
add ons.
• Surcharge of 10% on persons whose taxable income
exceeds Rs. 1 crore

5. Budget (2013-14) – HigHligHts
• TDS of 1 per cent on land deals over Rs. 50 lakh
• Excise duty on certain SUVs hiked to 30 per cent
• Specific excise duty on cigarettes increased by 18 per cent
• On mobile phones priced at more than Rs. 2000, excise duty hiked
to 6 per cent
• Plan expenditure pegged at Rs. 555,322 crore
• Non-plan expenditure pegged at Rs. 11,09,975 crore for 2013-14

6. Budget (2013-14) – HigHligHts
• Revised estimate for total expenditure is Rs. 14.3 trillion in
2012/13, which is 96 pct of budget estimate
• Person taking a loan for his first home during the period 2013-14
will be entitled to an additional deduction of Rs. 1 lakh
• Excise rate, service tax rate unchanged
• Import duty on rice bran oilcake withdrawn
• Commodities futures contracts at 0.01 per cent
• No change in basic customs duty rate of ten per cent and service
tax rate of 12 per cent

7. Budget (2013-14) – Provisions
• Tax Administraion Reforms Commission to be set up to review tax
laws
• Revised estimate for total expenditure is Rs. 14.3 trillion in
2012/13, which is 96 pct of budget estimate
• 3000 km of road projects to be awarded in the first six months
• Refinancing capacity of SIDBI increased to Rs. 10,000 cr from Rs.
5,000 crore for MSMEs
• Allocation to defense spending up 4.5 per cent at Rs. 2.03 trillion

8. Budget (2013-14) – Provisions
• Cabinet committee on investment set up to monitor stalled projects
and guide decision making
• Govt committed to food security bill. Rs. 10,000 crore set apart for
expenditure likely under the Act
• Clean drinking water and sanitation to get Rs. 15,260 crore
• Rs. 1,400 crore to set up water purification plants to fight fluoride
affected areas
• Oil and gas policy will be reviewed and changed from a profit-
sharing structure to a revenue sharing structure

9. Budget (2013-14) – Provisions
• Natural gas pricing policy will be reviewed
• NELP projects that were stalled will be cleared
• A PPP policy framework is being devised with Coal India as a
partner to provide coal to power producers. The Coal Ministry is
working on it.
• Non tax benefits to SME units to remain for 3 years after they
outgrow from the category
• SIDBI's refinancing capacity increased to Rs. 10,000 crore

10. Budget (2013-14) – Provisions
• PSU banks to get Rs. 14,000 capital infusion in FY14
• Proposal to set up India's first women's bank as a PSU bank; initial
capital to be Rs. 1,000 crore
• Company investing Rs. 100 crore or more between now and 2015
will be entitled to deduct an investment allowance of 15 per cent in
addition to depreciation
• 2 new ports to be set up in West Bengal and Andhra Pradesh
• Insurance companies can open branches in Tier II cities without
prior approval of IRDA

11. Budget (2013-14) – Provisions
• KYC of banks will be sufficient to acquire insurance policies, banks
to act as brokers
• The Insurance Law Amendment Bill and the PFRDA Bill are before
the House, hope it gets passed in this session, says Chidambaram
• FY13 fiscal deficit estimated at 5.2 per cent; FY14 fiscal deficit
estimated at 4.8 per cent
• A proposal to amend the SEBI Act to strengthen the regulator is
under consideration, says the Finance Minister

12. Budget (2013-14) – Provisions
• 10 per cent stake or less will be treated as FII, and stake of more
than 10 to be treated as FDI
• Nirbhaya fund set up with an allocation of Rs. 1,000 crore set up to
ensure safety and security of women
• FIIs can participate in Exchange Traded Currency Derivatives
• Rs. 6,275 cr allocated to Ministry of Science and Technology; Rs.
5,880 cr to Department of Atomic Energy
• All cities with population of more than 1 lakh to be covered with
FM radio services

13. Budget (2013-14) – Provisions
• 11 lakh beneficiaries have received benefit under Direct Benefit
Transfer scheme
• Rs. 5,87,082 crore to be transferred to states under share of taxes
and non-plan grants in 2013-14
• Rs. 532 crore to make post offices part of core banking
• National Institute for Sports to train coaches to be set up at Patiala
at a cost of Rs. 250 crore
• Grant of Rs. 100 crore each to AMU (Aligarh), BHU (Varanasi) and
TISS (Guwahati) and INTACH.

14. Budget (2013-14) – Provisions
• Direct Taxes Code (DTC) bill to be introduced in current Parliament
session
• No change in peak rate of customs duty for non-agriculture
products
• Modified GAAR norms to be introduced from April 1, 2016
• Commodities transaction tax levied on non-agriculture

15. Budget (2013-14)- AnAlysis
• Instead of spending money on roads , Education, and Power ,
UPA has been wasting nations resources on these vote catching
schemes
Free Loans ..Farm Loan waiver .. 1 lakh crore ?
Free Jobs ..NREGA .. 50,000 crore /year
Free food.. Food security bill . 2 lakh crore /year
Free Money.. Direct Cash Transfer .. ? lakhcrore /year
All these schemes for Congress to get votes is to be paid by Middle
class , through higher Taxes , higher Interest rates , and higher
Fuel/power prices ..
.

16. Budget (2013-14)- AnAlysis
• Food Inflation is a big issue which is intolerance to middle & below
middle class people.
• But no clear picture drawn to cut the food inflation.
• Again the middle class salaried person gonna suffered most,with no
increase in tax exemption limit, commutation allowances, medical
allowances Finance Minister has just shown a mirage of Rs.2000
tax rebate, as what they had taken is much more.
• With manifold increase in prices of almost everything, there is
nothing left with common man to save.

17. Budget (2013-14)- AnAlysis
• Mr Chidambaram should give more incentives for Exports - which
he has failed to do so.
• Higher export earnings are the only way to curb the falling rate of
Indian Rupee