Union Budget 2013 Overview: Development Related: Investment Allowance 15% inv in plant & machinery b/w 2013-15

2013-15 Womens bank to be setup(Capital 1000Cr); Womens safety(Nirbhaya Fund) 1000Cr o First Womens bank as a public sector bank Target for disinvestment proceeds to over Rs 55000Cr for new fiscal year Inflation Indexed bonds to wean away investments in securities like gold o To protect personal savings from inflation Collective responsibility to ensure safety and dignity of women Deduction on interest on loans borrowed for new home buyers (capped 1lac) for first time home owners and available on acquisitions Policy to encourage production of shale gas Plan expenditure (govt. spending on social sector schemes) 29.4% more than revised est. BK Chaturvedi Committee Restructuring of Centrally Sponsored Schemes Wind energy(non-conventional) to have incentive via Generation Based Incentive(GBI) sum of 800cr to be provided to MNRE 150cr for neighborhood dev project(Relief and rehab) at Kudankulam o TN govt announced a 500cr dev plan at the same region Infra: Two new ports to be setup - ; seven new smart cities Road Regulatory Authority resolve issues impending constr. of highways & revive infra inv. 6th inland waterway lakhipur-bhanga stretch on river Barak of Assam Bangalore-Chennai industrial corridor via chithoor and nellore Agriculture: For provision of National Food Security Act 10000Cr Target of agricultural credit kept at Rs7lac Cr Complete social security package for unorganized sector Allocations made for crop diversification in the Indo-Gangetic plain, nutri-farms for growing fortified food crops, green revolution in Eastern India Farmer Producer Organizations(FPO) with max of 10lac working capital of 50Cr outlay Credit Guarantee Fund Small Farmers Agri Business Corp. 100Cr (Outlay) Three Pronged Strategy (MS Swaminathan) o Defend the gains already made in original green revolution o Extend the gains to new areas o Make new gains combining nutrition and agriculture by est. nutria-farms NABARD RIDF (XIX) finance constr. Of warehouses, silos, go-downs, cold storages Tax Related: Rate of tax on royalties increased from 10% to 25% RGESS First time investors raised from 10lac to 12lac income for 3years(tax benefit) 10% surcharge on incomes over 1cr per annum for individuals

Rs 2000 tax credit for people having income upto 5lac per annum A TDS of 1% on all transfers of immovable properties for a consideration above Rs50lac, while exempting agricultural land from the levy 20% of final withholding tax on profits distributed by unlisted companies to shareholders through buyback of shares Import duty on luxury cars, yatches, motorcycles raised from 75% to 100% and excise duty on SUV increased Baggage allowance for gold increased to 50k for men and 1lac for women Others: Fin Parameters: o GDP 4.5; agriculture, industry and mining underperformed o Fiscal deficit 5.2%(2012-13); 4.8%(for 2013-14) Goods and Service Tax(GST) o Been held up due to the lack of consensus among state governments FDI and FII difference o FII Investor having a stake of 10% or less in a company Allowed to participate in exchange traded currency derivative segment Permitted to invest in corporate bonds & GSECs to meet their margin reqs o FDI Investor having a stake of more than 10% in a company Max. FDI incoming Mauritius>Japan>Singapore>Netherlands>UK Three ways to counter CAD FDI, FII, ECB Banks Related: Banks can act as brokers to sell policies and also simplified KYC norms for buying product Banks are permitted to act as insurance brokers o Banking correspondents will be allowed to sell micro-insurance products Insurance companies allowed to open branches in Tier II cities and below without prior approval of IRDA All towns with 10000 or more will have an office of LIC and atleast one Pub sector general insurance company by March, 2014 Insurance and pension companies to directly trade in debt segment o Insurance Amendment and PFRDA Bills MISC: 167Cr allocated for Mars orbiter mission 6275Cr Min of Science & Technology; 5615Cr DoS; 5880 Dept of Atomic Energy Disabled: New department for Disability affairs Relaxation in the eligibility conditions for life insurance policies for persons suffering from disability or certain ailments by increasing the permissible premium rate from 10% to 15% of the sum assured for the policies issued after April 1st 110Cr for ADIP(Assistance to Buy Aids & Appliances) scheme

Railway Budget (2012-13) New forged wheel factory proposed at Rae Bareli Greenfield EMU manufacturing facility at Bhilwara Coach manufacturing unit in Sonepat For AP: Coach Mid-life Rehabilitation(MLR) workshop, Diesel electric multiple unit at Kurnool Rail Neer Bottle plant at Vijayawada capable of prod. Of 1lac litres of water a day o Once setup railways will impose ban on sale of other packaged water brands Indian Railways Institute of Fin. Mgmt for finance officers in - Secunderabad Kazipet coach factory yet to take off due to lit. of 64acres of land (of Endowments dept) Others: Plan expenditure pegged at 63k Cr (3k cr more than budget estimate for current fin. yr)