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Highlights of the tax proposals

Finance Minister P Chidambaram announced a slew of taxation proposals in the Union Budget on Thursday.

Highlights of the tax proposals

Tax Reform committee to be setup to make system better.

Direct Taxes

Little room to raise tax levels. Prudence and Patience. 

No change in tax slabs 

Tax Credit of Rs 2,000 for income up to Rs 5 lakh

Education Cess to stay at 3% 

Home loan interest exemption of Rs 1 lakh, if limit is not exhausted it can be carried to next year.

Donations to National Children's fund - 100% deduction

Concessional tax rate of Dividend received from Foreign Subsidiary to continue.

Duty on Luxury motor vehicles - 100%

On bikes - 75% , Yachts - 25%

Baggage rules - Duty Free limit for Gold – Rs 50,000 for men and Rs 100,000 for women.

10% surcharge for Super rich for income of more than Rs 1 crore.

Peak Customs and Excise rates unchanged.

Increase in Specific excised duty of Cigarettes.

SUVs to pay higher tax - Excise duty to 30% for non taxi SUV

Duty on marble hiked to Rs 60 per sq m

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Union Budget, as it unfolded on February 28

Complete coverage: Union Budget 2013-14

Budget Impact Live!

Highlights of the tax proposals

Service Tax

Only 2 new service tax aspects in the negative list - Vocational Courses will be exempt from Service tax.

Full exemption of Service tax only to films exhibited in Theatres.

Service tax on all air conditioned restaurants.

Reduced rate of abatement for high cost houses to 70%

Service tax payment to be encouraged - One time scheme announced. Interest and Penalties to be waived for non payers.

Direct Taxes – Rs 13,300 crore collection

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