7/30/2019 Important Announcements That Will Impact the Middle
Class in Budget
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Important announcements that will impact the middle class in
Budget-2013 1) You can look forward to more tax-free bonds in the
coming days, as some institutions areexpected to raise around Rs
25,000 crore via tax-free bonds in 2012-13. The finance minister
has
also permitted some institutions to issue tax free bonds in
2013-14 up to Rs 50,000 crore.2) The hike in income threshold to
invest in Rajiv Gandhi Equity Saving Scheme ( RGESS) is
good news for new investors to the stock market. Now, those with
income of up to Rs 12 lakh
can invest in (RGESS). Earlier only those with income of Rs 10
lakh and less could invest in thescheme.3 ) If you are taking a
housing loan of less than Rs 25 lakh this year, you can claim
additional taxbreak of Rs 1 lakh on interest payment. This is in
addition to Rs 1.5 lakh permitted currently.4) If you have been
worried about inflation eating into your long term savings, you
should waitfor inflation indexed bonds and inflation indexed
national security certificates. The details of
these instruments will be announced shortly.5) If you are living
in a tier II city and find it difficult to find an insurer near
your place, the
budget has some good news for you. Insurance companies can open
officers in tier II cities
without prior permission from Insurance Regulatory and
Development Authority.
6) Union Budget 2013-14 has raised the eligibility cap on life
insurance premiums to 15% for
policyholders with disabilities or specified ailments, noting
that some policies meant for such
individuals exceed the existing limit of 10% . If policies do
not meet the eligibility criterion, theamount of deduction allowed
will be restricted to 10% (15% in case of persons with
disabilities)
of the sum assured and the maturity proceeds will be taxed.7)
The finance minister has announced a tax credit of Rs 2,000 for
individuals with income ofless than Rs 5 lakh. In simple terms, if
your tax payable amounts to Rs 10,000, your liability will
be limited to Rs 8,0008) Securities transaction tax is reduced.
STT on mutual fund (MF) and exchange traded fund(ETF) redemption's
at fund counters is slashed to 0.001% from 0.25%; STT on MF/ETF
purchase and sale on exchanges is reduced from 0.1% to 0.001%,
only on the seller.
9) If you are derivative trader in the equities market, you
should be happy as STT on futures hascome down 0.017% to 0.01 % and
if you are derivative trader in commodities market, you have
to pay CTT at the same rate applicable to equity futures. There
was no CTT earlier.
10) If you are going abroad, here is some good news for you.
Duty-free shopping limit is hikedto Rs 50,000 for a male passenger
and Rs 1 lakh for a female passenger.11) Mobile phone prices to go
up; the excise duty is hiked to 6% on handsets which costs
more than Rs 2,000 .12) If you are a service tax evader, you
should make use of the new voluntary ComplianceEncouragement Scheme
announced in the budget. You can file a declaration of service tax
due
