Highlights of union budget for 2013-14

Finally much awaited budget 2013 is come out without exciting the investors. This budget is very simple and there is no significant change for the tax payers, finally the budget disappoint the middle class people by not increasing the tax slabs. So, one more year with the same income in the rising inflation environment. This article explores the important changes announced in the budget and revisit of the earlier tax slabs. If you have any thoughts about the budget, please write it in the comments section.

Budget_PC

1. No Change in Tax Slabs

There is no change in the tax slabs from the previous budget. This is the big disappoint for the tax payers because those who are in the lower income group would have expected at least some relief in the slabs. Now, another year we have to wait for the budget to get more income. The following are the existing tax slabs:

General Tax Slab

  • Up to Rs. 2 lacs – No Tax
  • Rs 2 lacs to Rs. Rs. 5 lacs – 10% Tax
  • Rs 5 lacs to Rs. Rs. 10 lacs – 20% Tax
  • Above Rs. 10 lacs – 30% Tax

Senior Citizen Tax Slab (Above 60 Years)

  • Up to Rs. 2.5 lacs – No Tax
  • Rs 2.5 lacs to Rs. Rs. 5 lacs – 10% Tax
  • Rs 5 lacs to Rs. Rs. 10 lacs – 20% Tax
  • Above Rs. 10 lacs – 30% Tax

Very Senior Citizen Tax Slab (Above 80 Years)

  • Up to Rs. 5 lacs – No Tax
  • Rs 5 lacs to Rs. Rs. 10 lacs – 20% Tax
  • Above Rs. 10 lacs – 30% Tax

The only extra tax exemption in this category is Rs. 2000 credit for the lower income group of Rs 2-5 lacs.

2. Home loan exemption for new buyers

If you are buying a new house in the year 2013-14, there is additional Rs. 100000 tax exemption on home loans interest for this financial year. Note that this exemption is only for this year and only for the new buyers. Also the home loan amount must be under Rs. 2500000. If you taken a loan of Rs. 2600000, there won’t be any benefits under this announcement.

3. Service tax for AC restaurants

In the existing service tax laws, only the AC restaurants which serve the liquor has to pay the service tax. But, from this financial year onwards any AC restaurants has to charge service tax to the customers. This is a big below to the common man, it is very normal that most of the restaurants are having AC. So, our eating cost will be expensive.

4. 1% TDS on real estate transaction

If you sell any property other than the agriculture land worth more than Rs. 5000000, there is a TDS of 1% has to be paid as the tax. For example, if you sell your flat for Rs. 6000000, then you need to pay Rs. 60000 as the TDS to the income tax office.

5. Change Rajiv Gandhi Equity Saving Scheme (RGESS)

Earlier, RGESS scheme was only available to those investors whose taxable income is below 10 lacs, but now its increased to 12 lacs. Anyways, I feel RGESS is too complicated.

6. Mobiles, High end SUV car’s will be expensive

There is an increase in the excise duty for mobiles costing more than Rs. 2000, set top boxes and SUVs. This would cost more in the coming days.

Overall, the budget is very disappoint for everyone in the country. Every budget, would have satisfied at least any one category of people, but this budget is not bringing smile on any one’s face. There is a huge problem ahead for our country to manage the high fiscal deficit. The is the main reason why there is no great tax breaks in the budget. If you have any thoughts about the budget, please post it in the comments section.

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6 Responses to “Highlights of union budget for 2013-14”

  1. Mayank Says:

    Worst Budget

    Reply

  2. Mukund Ghayadar Says:

    Hi,
    I have lost Rs. 4995/- in income tax since Jabuary 2013 through March 2013. As I did not show any investment documnts which is my rent receipt, medical allowance bills & LIC policy worth Rs 14000/-.
    So could you please tell me if I file for income tax return in the middle of this year will I get some refund?
    And also please guide me how to file income tax return online And what all documents will be required?

    Thanks.

    Reply

    • krishnas Says:

      Hello Mukund,

      You have to file the Income Tax returns before 31 July this year to get the refund. Note that you have to add the missing investments at the tome of filing the returns. Also give the correct bank account number. You are not required to submit any documents when you are filing the income tax returns.

      It is important to note that, if you are not filing the IT returns before the due is not eligible for the refund.

      Hope this clears your questions.You can post the comments here or I am providing support through face book page : https://www.facebook.com/thinkplaninvest

      Thanks,
      Krishna

      Reply

  3. Ram Says:

    hi Krishnas,

    Please answer Mukul ASAP, as this would solve many doubts.

    Thanks,
    Ram

    Reply

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