Budget 2013 Impact on Personal Tax

The Union budget of 2013-14 received thumbs down from the markets as no big bang announcements were made but on individual front couple of key things were announced. 

If you have been thinking about how Budget 2013 going to impact you on personal level, then following are the highlights of changes made on personal tax front:

  • Tax credit of Rs 2000 for those, whose total income is Rs 5 lakh
  • No changes in personal Income Tax slabs
  • Surcharge of 10% for income of Rs 1 cr or more per annum for one year
  • Surcharge to be applicable for individuals and corporate
  • 1% TDS for property sale worth more than Rs 50 lakh; agri land exempt 
  • 5.5% tax to GDP ratio for direct tax 
  • 4.5% tax to GDP ratio for indirect tax
  • Tax administration reform commission to be set up to strengthen the system
  • Should reclaim 11.9% Tax-GDP ratio in short-term
  • There are 42,800 persons in the country who admitted to a taxable income exceeding Rs 1 cr per year
  • Donations to National Children's Fund will be eligible for 100% tax deduction
  • Long-term infra bonds also eligible for tax deduction; additional Rs 1 lakh deduction for home loans
  • Educational Cess to continue at 3 %

To know more about the budget 2013 highlights use the following link to download a summary report on the same in pdf format: Budget 2013 Highlights PDF

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