Union Budget 2013 -14

Budget Impact “Old Gift with New Packages”

Ventura
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11 6 March,
6 March,
2013
2013
 Major Highlights Key Factors to Watch

2012-13 2013-14
(Estimates) (Projected)

Fiscal Deficit 5.2% 4.8%

GDP Growth 5.0%- 5.2% 6.1% -6.7%

Inflation (WPI) 7.2% -7.5% 6.2%- 6.6%

Interest Rates (G-Sec) 8% p.a. 7.7% - 7.8% p.a.

Exchange Rate (1 USD) INR 53-54 INR 52-53

Only 42,800 persons have a taxable income exceeding Rs. 1 crore per year.

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 Major Changes and Impact

A surcharge of 10% on persons whose taxable income exceeds Rs.1 crore

will be levied.
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 Budget Impact Tax Implications on Financial Markets

Budget Changes Impact

Introduction of Commodities Transaction Tax

Commodities (CTT) levied on non agricultural
Negative
Transaction Tax commodities future contracts at
(CTT) 0.01% of the price of the trade

Tax Deducted at A levy of TDS of 1% on transfer of

Source (TDS) on immovable property where
Negative
transfer of immovable consideration exceeds Rs.50
property Lakhs.

Increase in the specific excise duty on cigarettes

Ventura Securities Ltd. Page 4 of 11 6 March, 2013

 Budget Impact Tax Implications on Financial Markets

Budget Changes Impact

•Annual income limit Increased
from Rs. 10 to Rs.12 lakhs.
Liberalisation of Rajiv
Gandhi Equity Saving Positive
•Investment deduction is now
Scheme (RGESS)
extended to 3 years from one
time.

New home loan borrowers upto

Tax deduction on
Rs. 25 lakhs in FY2013 -14
interest for NEW Positive
would get a tax deduction on
home loan borrowers
interest of up to Rs.1 lakh

Excise duty on SUVs has been increased from 27% to 30%

Ventura Securities Ltd. Page 5 of 11 6 March, 2013

 Budget Impact Tax Implications on Financial Markets

Reduction of
Securities
Budget Changes Impact
Transaction Tax
(STT):
Equity Futures Reduced from 0.017% to 0.01% Positive
Mutual Fund
Reduced from 0.25% to 0.001% Positive
redemption
ETF purchase on
Reduced from 0.1% to Nil Positive
exchanges

ETF sale on Reduced from 0.1% to 0.001%,

Positive
exchanges payable by seller

I propose to levy Service Tax even on air conditioned restaurants which

do not serve liquor.
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 Budget Impact

Investments Budget Changes Impact

Proposed inflation-indexed
bonds or inflation-indexed
Inflation Bonds/
National Security Certificates Positive
Certificates
(NSCs) for investments to
protect savings from inflation

Issue of Tax Free Bonds upto

Tax Free Bonds Rs 50,000cr in FY 2013-14 for Positive
Infrastructure projects

Mobile phones priced at more than Rs.2000 will now attract 6% excise
duty from 1 %
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 Budget Impact No change in Income Tax Slabs
Tax Rate of Individuals Tax Slabs(`)
`)
Exemption* Up to 2,00,000
10% 2,00,000 - 5,00,000
20% 5,00,001- 10,00,000
30% Above 10,00,001
Note: *Education cess @ 3% chargeable to all slabs
*Exemption for$ Tax Slabs(`)
`)
Women Up to 2,00,000
Senior Citizen@ Up to 2,50,000
Very Senior Citizen# Up to 5,00,000
Note: @ 60 years # Individuals more than 80 years old
Relief of Rs. 2060 for the tax payers in the tax bracket of Rs. 2 to 5 lakhs.
(including cess)
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 Budget Impact Tax on Capital Gains
Capital Gains Taxation Individuals / HUF Others #
On Mutual Funds (incl. NRIs) $
Short Term Capital Gains (units held for less than 12 months
Equity Schemes 15.45% 16.22%
Debt Schemes 30.90% 32.45%
Long term Capital Gains (units held for more than 12 months)
Equity Schemes Nil Nil
Debt Schemes
Without Indexation 10.30% 10.30%
With Indexation 20.60% 20.60%
Note: $ Surcharge @ 10% will be levied on income above Rs.1 crore
# Surcharge @ 5% for income between Rs.1 to Rs.10 crores and 10% where income
exceeds Rs.10 crores

Mutual fund distributors will be allowed to become members in the Mutual

Fund segment of Stock Exchanges.
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 Budget Impact Change in Dividend Distribution Tax
Dividend Distribution Individuals / HUF Others
Tax (DDT) on (incl. NRIs)
Mutual Funds

Current Revised Current Revised

Equity Schemes Nil Nil Nil Nil

Money Market &

27.038% 28.325% 32.445% 33.990%
Liquid Schemes

Debt Schemes 13.519% 28.325% 32.445% 33.990%

All the strength and succour you want is within yourself. Therefore, make
your own future. – Swami Vivekananda
Ventura Securities Ltd. Page 10 of 11 6 March, 2013
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