New: Budget 2013-14 - 1. Proposal to introduce Commodity Transaction Tax (CTT) in a limited way. CTT applicable on the sale of commodities. Agricultural commodities will be exempted. CTT shall be at the rate of 0.01% on the value of transaction and the tax shall be payable by the seller.2.No change in the normal rates of 12 percent for excise duty and service tax.3. Excise duty on SUVs increased from 27 to 30 percent. Not applicable for SUVs registered as taxis.4.Proposals to levy Service Tax on all air conditioned restaurant.5.Additional deduction of interest upto 1 lakh for a person taking first home loan upto 25 lakh during period 1.4.2013 to 31.3.2014 (Total 2.5 lacs) Budget 2013-14!!!

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Thursday, February 28, 2013

Budget 2013 -14: SEBI & Others


1. In order to curb the Insider Trading and malpractices, budget has proposed to amend SEBI Act as to provide sufficient protection to the investors.

2. SEBI to simplify the procedures and prescribe uniform Registration & additional norms for entry for foreign portfolio investors. (FPI is foreign direct investment in capital market).

3. Rule that, where an investor has a stake of 10 per cent or less in a company,it will be treated as FII and, where an investor has a stake of more than 10 per cent, it will be treated as FDI will be laid.

4. FIIs will be permitted to participate in the exchange traded currency derivative segment to the extent of their Indian rupee exposure in India.

5. SEBI to prescribed requirement for angel investor pools by which they can be recognised as Category I AIF venture capital funds.

6. Small and medium enterprises, to be permitted to list on the SME exchange without being required to make an initial public offer (IPO).
Here SME Exchange means a platform of the Exchange is intended for small and medium sized companies with high growth potential. The SME platform of the Exchange shall be open for SMEs whose post issue paid up capital shall be less than or equal to Rs.25 crores. The platform shall allow new, early stage ventures and small quality companies to raise much needed growth capital as they grow, mature and transit to the Exchanges’ main board.

7. Stock exchanges to be allowed to introduce a dedicated debt segment on the exchange.
                                                                    Others

1. Surcharge of 10 percent on persons (other than companies) whose taxable income exceeds 1 crore.

2. Increase surcharge from 5 to 10 percent on domestic companies whose taxable income exceed 10 crore.

3. Tobacco products, SUVs and Mobile Phones to cost more.

4. In case of foreign companies who pay a higher rate of corporate tax, surcharge to increase from 2 to 5 percent, if the taxabale income exceeds 10 crore.

5. In all other cases such as dividend distribution tax or tax on distributed income, current surcharge increased from 5 to 10 percent.

6. Education cess to continue at 3 percent.

7. Contributions made to schemes of Central and State Governments similar to Central Government Health Scheme, eligible for section 80D of the Income tax Act.

8. Donations made to National Children Fund eligible for 100 percent deduction.

9. Proposal to introduce Commodity Transaction Tax (CTT) in a limited way. CTT applicable on the sale of commodities. Agricultural commodities will be exempted. CTT shall be at the rate of 0.01% on the value of transaction and the tax shall be payable by the seller.

10. Modified provisions of GAAR will come into effect from 1.4.2016.

11. No change in the normal rates of 12 percent for excise duty and service tax.

12. No change in the peak rate of basic customs duty of 10 perent for non-agricultural products.

13. Duty on specified machinery for manufacture of leather and leather goods including footwear reduced from 7.5 to 5 percent.

14. Duty on pre-forms precious and semi-precious stones reduced from 10 to 2 percent.

15.Duty on Set Top Boxes increased from 5 to10 percent.

16. Duty on raw silk increased from 5 to 15 percent.

17. Duty on imported luxury goods such as high end motor vehicles, motor cycles, yachts and similar vessels increased.

18. 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.

19. Excise duty on SUVs increased from 27 to 30 percent. Not applicable for SUVs registered as taxis.

20. Duty on mobile phones priced at more than 2000 raised to 6 percent.

21. Exemption of Service Tax on copyright on cinematography limited to films exhibited in cinema halls.

22. Proposals to levy Service Tax on all air conditioned restaurant.

23. Additional deduction of interest upto 1 lakh for a person taking first home loan upto 25 lakh during period 1.4.2013 to 31.3.2014 (Total 2.5 lacs)

24. Income limit under Rajiv Gandhi Equity Savings Scheme (RGESS) will be raised from Rs. 10 lakh to Rs. 12 lakh.

ON Rajiv gandhi Equity Scheme (http://rgess.com/)

Who can invest in RGESS?

New retail investors with an annual income of less than 10 lakhs.

How much can I invest?

The maximum amount eligible for claiming benefit under RGESS is Rs. 50,000.

Tax Benefit - Deduction u/s 80 CCG, is available on 50% of the amount invested. The benefit is in addition to deduction available u/s Sec 80C.

Lock-in Period - 3 years. Fixed lock-in during first year followed by a flexible lock-in for subsequent two years.