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Budget 2013 : Whats in it for Individuals?

  1. No change in tax slabs for individual taxation. However an additional credit of Rs 2000  has been provided for individuals with income below Rs 5,00,000. The idea behind this additional rebate is to provide relief to assessees while ensuring that they still have to file returns of income.
  2. Surcharge of 10% will be applicable on Persons having Taxable Income Exceeding Rs 1 Crore.The much dreaded and discussed “Super-rich tax” is just an old provision, re-visited. Surcharge of 10% shall be payable on tax  already computed.
  3. Additional Deduction of interest upto Rs 1 Lakh will be available for individuals availing Home Loans of value up to Rs 25 Lakh during period 1.04.2013 to 31.03.2014 for the first time. The value of the property for which such loan has been availed should be less that Rs 40 lakhs.
  4. For persons suffering from disabilities or specified ailments as mentioned in the rules the threshold of insurance premium deductible under section 80C has been increased from 10% to 15% of sum assured.
  5. Contribution to Schemes of Central and State Government similar to Central Government Health Scheme will be eligible for deduction under section 80D which provides for deductions on eligible mediclaim insurance schemes.
  6. Donations to National Children Fund are also eligible for 100% deduction under section 80G, contributions to NCF earlier attracted a deduction of upto 50% of the amount of donation.
  7. Withholding tax at the rate of 1% to be imposed on the transfer value of immovable properties where the consideration exceeds Rs 50 lakhs. Agricultural land is to be exempted for such transactions. This is another attempt by the government to curb black money and to increase tax collections from real estate transactions. Last year the government had imposed Tax Collection at Source on similar transactions, however the response to the same was extremely poor and therefore this new withholding tax has been imposed.
  8. Expenses! The following is an indicative list of things which are going to become dearer in the coming year thanks to the additional levies promulgated in the Finance Bill of 2013.
Marble Silver
Mobiles phones costing > Rs 2000 Cigarettes and other similar products (except Bidis)
Set-Top boxes Raw Silk
Imported Cars, Motor Bikes and Yatchs Food in AC restaurants not serving alcohol
SUVs Leather Goods
Luxury Apartments

Goods and services listed in the list below should get cheaper as a result of the pronouncements in the Finance Bill 2013

Hand Made Carpets and Textile Floor Ready Made Garments
Semi Precious Stones

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