<p>Finance Minister P. Chidambaram presented one of the most highly anticipated Indian budgets of recent years on Thursday, as the government looks to rein in a bloated fiscal deficit and restore confidence in Asia's third-largest economy.<br /><br />Keynotes</p>.<p>No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.5 lakh<br /><br />Ten percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such income<br /><br />Excise duty on cigarettes to be increased 18 percent<br /><br />No change in service tax of 12 percent<br /><br />Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol<br /><br />Education cess to continue at 3 percent<br /><br />11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)<br /><br />Rs.1,000 crore allocated for establishing Nirbhaya Fund<br /><br />Preliminary work begun on Bangalore-Mumbai Industrial corridor<br /><br />Seven new cities identified along Delhi-Mumbai Industrial Corridor<br /><br />Average growth during UPA-1 was 8 percent; high growth not a novelty<br /><br />Other highlights:</p>.<p>No service tax on vocational courses run by institutes affiliated to state governments<br /><br />Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol<br /><br />No service tax on agricultural testing procedures<br /><br />Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST<br /><br />Import duty on high-end vehicles raised from 75 percent to 100 percent<br /><br />Concessions for encouraging MRO (maintenance repair overhaul) sector<br /><br />Excise duty on cigarettes to be increased 18 percent<br /><br />No change in customs duty on non-agricultural products<br /><br />No change in service tax of 12 percent<br /><br />Modified law to prevent tax avoidance to come into effect April 1, 2016<br /><br />100 percent tax deduction for contributions to National Children's Fund<br /><br />Education cess to continue at 3 percent<br /><br />11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)<br /><br />Property transactions skewered; TDS of one percent where transaction exceeds Rs.50 lakh<br /><br />Tax on mutual fund redemptions reduced from .25 percent to .001 percent<br /><br />No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.5 lakh<br /><br />Ten percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such income<br /><br />Tax Administrative Reforms Commission to be set up<br /><br />Collective responsibility to ensure dignity and safety of women; recent incidents have cast a dark shadow; stand in solidarity with our girl children and women; will keep them safe and secure<br /><br />Rs.1,000 crore allocated for establishing Nirbhaya Fund<br /><br />Defence allocated Rs.2 lakh 3,672 crore<br /><br />Cities to be encouraged to promote waste to energy projects<br /><br />Low interest funds to be provided for promoting clean energy<br /><br />Rs.800 crore provided to promoting wind energy<br /><br />Two new ports to be set up in West Bengal and Andhra Pradesh to add 100 million tonnes handling capacity<br /><br />Gas handling terminal at Dabhol in Maharashtra to be fully operational during 2013-14<br /><br />State governments urged to sign restructuring plans with electricity discoms<br /><br />Tax-free infrastructure bonds of Rs.50,000 crore to be issued<br /><br />Textile ministry allocated Rs.50 crore for establishing apparel parks<br /><br />Handloom sector allocated Rs.96 crore to benefit 150,000 weavers<br /><br />Infrastructure debt funds to be encouraged<br /><br />Regulator to be appointed for road projects; 3,000 km of road projects to be awarded in first six months of 2013-14<br /><br />Incentive allowance of 15 percent over and above permitted depreciation to those investing over Rs.100 crore in infrastructure projects<br /><br />Rajiv Gandhi Equity Scheme to be liberalised<br /><br />Seven new cities identified along Delhi-Mumbai Industrial Corridor<br /><br />Preliminary work begun on Bangalore-Mumbai Industrial corridor<br /><br />Foodgrain production during 2013-13 estimated at 250 million tonnes<br /><br />Rs.500 crore allocated for promoting crop diversification<br /><br />Rs.200 crore allocated for promoting nutrient-rich crops<br /><br />Rs.50 crore allocated for farmer-producer organisations<br /><br />National Livestock Mission to be launched with allocation of Rs.307 crore<br /><br />Hope parliament will pass food security bill; Rs.10,000 crore allocated for initial expenditure on implementation<br /><br />Human resource development ministry to get Rs.65,867 crore<br /><br />Rs.13,250 crore allocated for midday meals scheme<br /><br />Rs.17,700 crore allocated for Integrated Child Development Scheme<br /><br />Drinking water and sanitation ministry allocated Rs.15,260 crore<br /><br />Allocation of rural development ministry allocation raised by 46 percent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme<br /><br />Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at Rs.5 lakh 55,224 crore<br /><br />Rs.41,000 crore for Scheduled Caste plan<br /><br />Rs.97,000 crore for women's development<br /><br />Rs.110 crore for department of disabilities<br /><br />Rs.37,330 crore for health ministry<br /><br />Average growth during UPA-1 was 8 percent; high growth not a novelty<br /><br />Current account deficit a worry because of high oil and gold imports<br /><br />Will need $75 billion to finance current account deficit<br /><br />Need to encourage FDI in consonance with economic priorities<br /><br />WPI inflation down to 7 percent; food inflation worrying.<br /></p>.<p>No service tax on vocational courses run by institutes affiliated to state governments<br /><br />Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol<br /><br />No service tax on agricultural testing procedures<br /><br />Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST<br />Import duty on high-end vehicles raised from 75 percent to 100 percent<br /> </p>.<p>No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.5 lakh<br /><br />Ten percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such income<br /><br />Excise duty on cigarettes to be increased 18 percent<br /><br />No change in service tax of 12 percent<br /><br />Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol<br /><br />Education cess to continue at 3 percent<br /><br />11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)<br /><br />Rs.1,000 crore allocated for establishing Nirbhaya Fund<br /><br />Preliminary work begun on Bangalore-Mumbai Industrial corridor<br /><br />Seven new cities identified along Delhi-Mumbai Industrial Corridor<br /><br />Average growth during UPA-1 was 8 percent; high growth not a novelty<br /><br />Other highlights:</p>.<p>No service tax on vocational courses run by institutes affiliated to state governments<br /><br />Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol<br /><br />No service tax on agricultural testing procedures<br /><br />Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST<br /><br />Import duty on high-end vehicles raised from 75 percent to 100 percent<br /><br />Concessions for encouraging MRO (maintenance repair overhaul) sector<br /><br />Excise duty on cigarettes to be increased 18 percent<br /><br />No change in customs duty on non-agricultural products<br /><br />No change in service tax of 12 percent<br /><br />Modified law to prevent tax avoidance to come into effect April 1, 2016<br /><br />100 percent tax deduction for contributions to National Children's Fund<br /><br />Education cess to continue at 3 percent<br /><br />11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)<br /><br />Property transactions skewered; TDS of one percent where transaction exceeds Rs.50 lakh<br /><br />Tax on mutual fund redemptions reduced from .25 percent to .001 percent<br /><br />No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.5 lakh<br /><br />Ten percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such income<br /><br />Tax Administrative Reforms Commission to be set up<br /><br />Collective responsibility to ensure dignity and safety of women; recent incidents have cast a dark shadow; stand in solidarity with our girl children and women; will keep them safe and secure<br /><br />Rs.1,000 crore allocated for establishing Nirbhaya Fund<br /><br />Defence allocated Rs.2 lakh 3,672 crore<br /><br />Cities to be encouraged to promote waste to energy projects<br /><br />Low interest funds to be provided for promoting clean energy<br /><br />Rs.800 crore provided to promoting wind energy<br /><br />Two new ports to be set up in West Bengal and Andhra Pradesh to add 100 million tonnes handling capacity<br /><br />Gas handling terminal at Dabhol in Maharashtra to be fully operational during 2013-14<br /><br />State governments urged to sign restructuring plans with electricity discoms<br /><br />Tax-free infrastructure bonds of Rs.50,000 crore to be issued<br /><br />Textile ministry allocated Rs.50 crore for establishing apparel parks<br /><br />Handloom sector allocated Rs.96 crore to benefit 150,000 weavers<br /><br />Infrastructure debt funds to be encouraged<br /><br />Regulator to be appointed for road projects; 3,000 km of road projects to be awarded in first six months of 2013-14<br /><br />Incentive allowance of 15 percent over and above permitted depreciation to those investing over Rs.100 crore in infrastructure projects<br /><br />Rajiv Gandhi Equity Scheme to be liberalised<br /><br />Seven new cities identified along Delhi-Mumbai Industrial Corridor<br /><br />Preliminary work begun on Bangalore-Mumbai Industrial corridor<br /><br />Foodgrain production during 2013-13 estimated at 250 million tonnes<br /><br />Rs.500 crore allocated for promoting crop diversification<br /><br />Rs.200 crore allocated for promoting nutrient-rich crops<br /><br />Rs.50 crore allocated for farmer-producer organisations<br /><br />National Livestock Mission to be launched with allocation of Rs.307 crore<br /><br />Hope parliament will pass food security bill; Rs.10,000 crore allocated for initial expenditure on implementation<br /><br />Human resource development ministry to get Rs.65,867 crore<br /><br />Rs.13,250 crore allocated for midday meals scheme<br /><br />Rs.17,700 crore allocated for Integrated Child Development Scheme<br /><br />Drinking water and sanitation ministry allocated Rs.15,260 crore<br /><br />Allocation of rural development ministry allocation raised by 46 percent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme<br /><br />Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at Rs.5 lakh 55,224 crore<br /><br />Rs.41,000 crore for Scheduled Caste plan<br /><br />Rs.97,000 crore for women's development<br /><br />Rs.110 crore for department of disabilities<br /><br />Rs.37,330 crore for health ministry<br /><br />Average growth during UPA-1 was 8 percent; high growth not a novelty<br /><br />Current account deficit a worry because of high oil and gold imports<br /><br />Will need $75 billion to finance current account deficit<br /><br />Need to encourage FDI in consonance with economic priorities<br /><br />WPI inflation down to 7 percent; food inflation worrying.<br /></p>
<p>Finance Minister P. Chidambaram presented one of the most highly anticipated Indian budgets of recent years on Thursday, as the government looks to rein in a bloated fiscal deficit and restore confidence in Asia's third-largest economy.<br /><br />Keynotes</p>.<p>No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.5 lakh<br /><br />Ten percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such income<br /><br />Excise duty on cigarettes to be increased 18 percent<br /><br />No change in service tax of 12 percent<br /><br />Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol<br /><br />Education cess to continue at 3 percent<br /><br />11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)<br /><br />Rs.1,000 crore allocated for establishing Nirbhaya Fund<br /><br />Preliminary work begun on Bangalore-Mumbai Industrial corridor<br /><br />Seven new cities identified along Delhi-Mumbai Industrial Corridor<br /><br />Average growth during UPA-1 was 8 percent; high growth not a novelty<br /><br />Other highlights:</p>.<p>No service tax on vocational courses run by institutes affiliated to state governments<br /><br />Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol<br /><br />No service tax on agricultural testing procedures<br /><br />Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST<br /><br />Import duty on high-end vehicles raised from 75 percent to 100 percent<br /><br />Concessions for encouraging MRO (maintenance repair overhaul) sector<br /><br />Excise duty on cigarettes to be increased 18 percent<br /><br />No change in customs duty on non-agricultural products<br /><br />No change in service tax of 12 percent<br /><br />Modified law to prevent tax avoidance to come into effect April 1, 2016<br /><br />100 percent tax deduction for contributions to National Children's Fund<br /><br />Education cess to continue at 3 percent<br /><br />11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)<br /><br />Property transactions skewered; TDS of one percent where transaction exceeds Rs.50 lakh<br /><br />Tax on mutual fund redemptions reduced from .25 percent to .001 percent<br /><br />No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.5 lakh<br /><br />Ten percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such income<br /><br />Tax Administrative Reforms Commission to be set up<br /><br />Collective responsibility to ensure dignity and safety of women; recent incidents have cast a dark shadow; stand in solidarity with our girl children and women; will keep them safe and secure<br /><br />Rs.1,000 crore allocated for establishing Nirbhaya Fund<br /><br />Defence allocated Rs.2 lakh 3,672 crore<br /><br />Cities to be encouraged to promote waste to energy projects<br /><br />Low interest funds to be provided for promoting clean energy<br /><br />Rs.800 crore provided to promoting wind energy<br /><br />Two new ports to be set up in West Bengal and Andhra Pradesh to add 100 million tonnes handling capacity<br /><br />Gas handling terminal at Dabhol in Maharashtra to be fully operational during 2013-14<br /><br />State governments urged to sign restructuring plans with electricity discoms<br /><br />Tax-free infrastructure bonds of Rs.50,000 crore to be issued<br /><br />Textile ministry allocated Rs.50 crore for establishing apparel parks<br /><br />Handloom sector allocated Rs.96 crore to benefit 150,000 weavers<br /><br />Infrastructure debt funds to be encouraged<br /><br />Regulator to be appointed for road projects; 3,000 km of road projects to be awarded in first six months of 2013-14<br /><br />Incentive allowance of 15 percent over and above permitted depreciation to those investing over Rs.100 crore in infrastructure projects<br /><br />Rajiv Gandhi Equity Scheme to be liberalised<br /><br />Seven new cities identified along Delhi-Mumbai Industrial Corridor<br /><br />Preliminary work begun on Bangalore-Mumbai Industrial corridor<br /><br />Foodgrain production during 2013-13 estimated at 250 million tonnes<br /><br />Rs.500 crore allocated for promoting crop diversification<br /><br />Rs.200 crore allocated for promoting nutrient-rich crops<br /><br />Rs.50 crore allocated for farmer-producer organisations<br /><br />National Livestock Mission to be launched with allocation of Rs.307 crore<br /><br />Hope parliament will pass food security bill; Rs.10,000 crore allocated for initial expenditure on implementation<br /><br />Human resource development ministry to get Rs.65,867 crore<br /><br />Rs.13,250 crore allocated for midday meals scheme<br /><br />Rs.17,700 crore allocated for Integrated Child Development Scheme<br /><br />Drinking water and sanitation ministry allocated Rs.15,260 crore<br /><br />Allocation of rural development ministry allocation raised by 46 percent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme<br /><br />Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at Rs.5 lakh 55,224 crore<br /><br />Rs.41,000 crore for Scheduled Caste plan<br /><br />Rs.97,000 crore for women's development<br /><br />Rs.110 crore for department of disabilities<br /><br />Rs.37,330 crore for health ministry<br /><br />Average growth during UPA-1 was 8 percent; high growth not a novelty<br /><br />Current account deficit a worry because of high oil and gold imports<br /><br />Will need $75 billion to finance current account deficit<br /><br />Need to encourage FDI in consonance with economic priorities<br /><br />WPI inflation down to 7 percent; food inflation worrying.<br /></p>.<p>No service tax on vocational courses run by institutes affiliated to state governments<br /><br />Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol<br /><br />No service tax on agricultural testing procedures<br /><br />Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST<br />Import duty on high-end vehicles raised from 75 percent to 100 percent<br /> </p>.<p>No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.5 lakh<br /><br />Ten percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such income<br /><br />Excise duty on cigarettes to be increased 18 percent<br /><br />No change in service tax of 12 percent<br /><br />Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol<br /><br />Education cess to continue at 3 percent<br /><br />11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)<br /><br />Rs.1,000 crore allocated for establishing Nirbhaya Fund<br /><br />Preliminary work begun on Bangalore-Mumbai Industrial corridor<br /><br />Seven new cities identified along Delhi-Mumbai Industrial Corridor<br /><br />Average growth during UPA-1 was 8 percent; high growth not a novelty<br /><br />Other highlights:</p>.<p>No service tax on vocational courses run by institutes affiliated to state governments<br /><br />Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol<br /><br />No service tax on agricultural testing procedures<br /><br />Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST<br /><br />Import duty on high-end vehicles raised from 75 percent to 100 percent<br /><br />Concessions for encouraging MRO (maintenance repair overhaul) sector<br /><br />Excise duty on cigarettes to be increased 18 percent<br /><br />No change in customs duty on non-agricultural products<br /><br />No change in service tax of 12 percent<br /><br />Modified law to prevent tax avoidance to come into effect April 1, 2016<br /><br />100 percent tax deduction for contributions to National Children's Fund<br /><br />Education cess to continue at 3 percent<br /><br />11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)<br /><br />Property transactions skewered; TDS of one percent where transaction exceeds Rs.50 lakh<br /><br />Tax on mutual fund redemptions reduced from .25 percent to .001 percent<br /><br />No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.5 lakh<br /><br />Ten percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such income<br /><br />Tax Administrative Reforms Commission to be set up<br /><br />Collective responsibility to ensure dignity and safety of women; recent incidents have cast a dark shadow; stand in solidarity with our girl children and women; will keep them safe and secure<br /><br />Rs.1,000 crore allocated for establishing Nirbhaya Fund<br /><br />Defence allocated Rs.2 lakh 3,672 crore<br /><br />Cities to be encouraged to promote waste to energy projects<br /><br />Low interest funds to be provided for promoting clean energy<br /><br />Rs.800 crore provided to promoting wind energy<br /><br />Two new ports to be set up in West Bengal and Andhra Pradesh to add 100 million tonnes handling capacity<br /><br />Gas handling terminal at Dabhol in Maharashtra to be fully operational during 2013-14<br /><br />State governments urged to sign restructuring plans with electricity discoms<br /><br />Tax-free infrastructure bonds of Rs.50,000 crore to be issued<br /><br />Textile ministry allocated Rs.50 crore for establishing apparel parks<br /><br />Handloom sector allocated Rs.96 crore to benefit 150,000 weavers<br /><br />Infrastructure debt funds to be encouraged<br /><br />Regulator to be appointed for road projects; 3,000 km of road projects to be awarded in first six months of 2013-14<br /><br />Incentive allowance of 15 percent over and above permitted depreciation to those investing over Rs.100 crore in infrastructure projects<br /><br />Rajiv Gandhi Equity Scheme to be liberalised<br /><br />Seven new cities identified along Delhi-Mumbai Industrial Corridor<br /><br />Preliminary work begun on Bangalore-Mumbai Industrial corridor<br /><br />Foodgrain production during 2013-13 estimated at 250 million tonnes<br /><br />Rs.500 crore allocated for promoting crop diversification<br /><br />Rs.200 crore allocated for promoting nutrient-rich crops<br /><br />Rs.50 crore allocated for farmer-producer organisations<br /><br />National Livestock Mission to be launched with allocation of Rs.307 crore<br /><br />Hope parliament will pass food security bill; Rs.10,000 crore allocated for initial expenditure on implementation<br /><br />Human resource development ministry to get Rs.65,867 crore<br /><br />Rs.13,250 crore allocated for midday meals scheme<br /><br />Rs.17,700 crore allocated for Integrated Child Development Scheme<br /><br />Drinking water and sanitation ministry allocated Rs.15,260 crore<br /><br />Allocation of rural development ministry allocation raised by 46 percent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme<br /><br />Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at Rs.5 lakh 55,224 crore<br /><br />Rs.41,000 crore for Scheduled Caste plan<br /><br />Rs.97,000 crore for women's development<br /><br />Rs.110 crore for department of disabilities<br /><br />Rs.37,330 crore for health ministry<br /><br />Average growth during UPA-1 was 8 percent; high growth not a novelty<br /><br />Current account deficit a worry because of high oil and gold imports<br /><br />Will need $75 billion to finance current account deficit<br /><br />Need to encourage FDI in consonance with economic priorities<br /><br />WPI inflation down to 7 percent; food inflation worrying.<br /></p>