Thursday, February 28, 2013

Tax highlights of Budget 2013

Finance Minister P Chidambaram has proposed an additional tax for the 'super rich'. Following are the highlights on how the Finance Minister has juggled with various taxes in his Union Budget 2013. – No change in income-tax slabs for personal income.
– A tax credit of Rs. 2,000 to every person with an income of up to Rs. 5 lakh per annum.
– Proposal to incorporate GAAR recommendations To applicable from 1.04.16
– A surcharge of 10 per cent on those who have a taxable income of more than Rs. 1 crore per annum.
– Indian company not liable to pay any dividend distribution tax for distribution of income from a foreign subsidiary.
– Excise duty on non-taxi SUVs hiked to 30 per cent from 27 per cent
– Import duty on luxury two-wheelers hiked to 75 per cent from 60 per cent
– Import duty on luxury cars hiked to 100 per cent from 75 per cent
– Custom duty benefit on hybrid/electric cars extended up to March 2015
– Current surcharge for corporate taxes has been increased from 5 per cent to 10 per cent, but only for one year.
– Tax deducted at source (TDS) proposed on the value of an immovable property as transaction on such properties are usually undervalued.
– TDS of 1 per cent on land deals worth over Rs. 50 lakh.
– Proposal to levy commodities transation tax (CTT) on non-agricultural commodity derivatives at 0.01 per cent.
– Royalty and technical expertise tax increased from 10 per cent to 25 per cent, where DTAA doesn't apply
– Houses above 2,000 sq ft or costing more than Rs. 1 crore will have lower abatement of 70 per cent as against 75 per cent. This will impact cost of houses by 0.6 per cent.
– Import duty on set-top boxes hiked from 5 pee cent to 10 per cent.
– 2 per cent customs duty imposed on coal imports.
– Securities Transaction Tax (STT) cut on equity futures to 1 bps from 1.7 bps

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