Budget 2013: Seven tax-saving avenues for common-man

This year's budget has not changed the tax slab rates for taxpayers, implying zero savings as far as the basic payment of income tax is concerned. The only exception to the rule is those who earn annual income of up to Rs 5 lakh where the net tax saving would be Rs 2060 (including education cess).

For other taxpayers, here are some the tax-saving avenues proposed in the Budget 2013...

Life Insurance Premium:

Section 80C of the I.Tax Act currently allows a deduction on premium paid on life insurance policy only if the annual premium paid is less than 10% of the sum assured.

Budget Impact - For persons with disability or severe disability or suffering from diseases or ailments specified in the Income Tax Act, the limit of 10% has been increased to 15%. Thus, for these assesses, if the annual premium paid is up to 15% of the sum assured, the same can be availed as a deduction under the Rs 1 lakh tax limit under section 80C.

Rajiv Gandhi Equity Savings Scheme:

Section 80CCG allows for tax deduction of a maximum of Rs 25,000 on amount invested in equity shares under the Rajiv Gandhi Equity Savings Scheme (RGESS) provided the taxable income of the person is less than Rs 10 lakh

Budget Impact - Now those earning income up to Rs 12 lakh will be eligible for deduction under RGESS. Also, the new provision will allow the investor exemption for not only direct investment in equity shares but also if the investment is made in the scheme of participating equity mutual fund schemes.

Also, the tax deduction of 50% of the amount invested, subject to a maximum of Rs 25,000, has been extended to three years instead of the current one-year.

This means that those eligible for deduction under this scheme can continue to invest up to Rs 50,000 per annum in equity or equity mutual funds for three consecutive years and avail an additional deduction of Rs 25,000 each year over and above the Rs 1 lakh deduction available under section 80C

Interest on Housing Loan:

Interest paid on housing loan for self-occupied property is allowed as a deduction up to a maximum of Rs 1.5 lakh per annum

Budget Impact - A new section 80EE has been inserted for only the first time buyers of a house property.

Those buying a house property whose value does not exceed Rs 40 lakh and avail a loan for an amount not exceeding Rs 25 lakh for the same shall now be allowed an additional deduction of Rs 1 lakh on interest paid on home loan so availed.

As this will be over the above the existing provision, the total amount of interest on housing loan allowed as a deduction will now be Rs 2.5 lakh for housing loans of up to Rs 25 lakh, resulting in more savings for such investors.

Tax - free bonds:

Investors can expect more investment avenues in the form of Tax-free bonds in the coming fiscal with the budget proposing to raise a maximum of Rs 50,000 crore of money from the market in FY '14, double the amount of money raised through tax-free bonds in FY '13.

Infrastructure Debt Funds:

Investors can also look forward to new investment avenue in the form of Infrastructure Debt Funds. While the structure of these debt funds will be clear later, the government has announced that four Infrastructure debt funds have been registered with Sebi already of which two have been launched in Feb '13.

New Investment avenues:

The budget has proposed introduction of new savings instruments with an intention to protect savings from inflation. These new instruments will be launched in consultation with the Reserve Bank of India. Though no tax benefits are expected to be attached to these instruments, investors can nevertheless expect a new savings avenue to diversify their savings.

Donation:

Section 80G of the Income Tax Act that provides for exemption of any amount given as donation to specified institutions will now also include National Children Fund. Any amount donated to this fund will result in 100% deduction of the amount so donated. 

Source : http://economictimes.indiatimes.com

EDITORIAL POSTAL CRUSADER: MARCH-2013

STRIKE IS OVER, BUT THE STRUGGLE WILL CONTINUE.

WE ARE ON THE RIGHT PATH

          The two days historic strike that shook the country is over. About twelve crores workers participated in the strike. About ten lakhs Central Government employees including five lakhs postal and RMS employees joined the mass upsurge of the Indian working class. In many states the strike turned into total bundh and in other parts of the country also it affected all the sectors of industry and other service sectors. The total unity and commitment exhibited by the entire trade unions has no parallel in the history of our country.

          The Central Government tried to ignore or underestimate the strike in the initial stage. But the largest mobilistaion of the workers throughout the length and breadth of the country, compelled the Government to negotiate with the leaders at last minute. The first round discussion held with the cabinet Minister for labour, Sri Mallikarjun Kharge and second round discussion with the Group of Cabinet Ministers headed by Sri. A. K. Antony, Defence Minister, failed as the Government simply sought more time and was not ready to settle any of the demands raised by the unions and appealed the leaders to call off the strike. The Secretary, Department of Posts also made a similar appeal to call off the strike, even when the main demands raised by the Postal JCA (NFPE & FNPO) remained unsettled.

          In addition to the demands raised by the Central Trade Unions, the Confederation of Central Government Employees & Workers and the Postal JCA has raised the demands of constitution of seventh Central Pay Commission, merger of 50% DA with pay, removing the restriction on compassionate appointments, filing up of all vacant posts, Departmentalization of GDS and related issues, Revision of wages of casual labourers and regularization, scrapping of PFRDA bill, raising the bonus ceiling limit, grant of five promotions, OTA revision, abolition of posts, outsourcing, contractorisation, privatization, cadre restructuring etc. also in the strike notice served to the Government and the Department of Posts. Government was not ready to settle any of the above demands and hence the question of calling off the strike did not arise at all.

          In the Postal the strike was conducted under the banner of Joint council of action (JCA) comprising NFPE & FNPO. The Strike was near total in majority of the circles and about 60 to 80% in the remaining circles. The entire Postal and RMS services were paralysed for two days. Both Departmental employees and Gramin Dak Sevaks exhibited perfect unity in the strike. NFPE and its affiliated unions including GDS had already conducted a one day strike on 12^th December 2012. Naturally, there was apprehension about successfully organizing two days strike within a short span of two months. But the mass scale participation of the employees in the two days strike proved that workers are ready even for still higher form of action, if the Government is not ready to settle their genuine and legitimate demands.

          What next is the question before us and working class of our country. Even though the two days strike is over, we have no other go, except carrying forward the struggle with added vigour taking inspiration from the mass sanction and determination of the workers at large. There is no short cut. As correctly pointed out by Late Com. K. G. Bose who revolutionized the P&T Trade union movement- “the organized trade union movement has drawn lessons that all illusions about the Government policies should be given up and has come to the conclusion that it is not a question of appealing to the sense of injustices of the Government, but the relative strength of the organized movement and the forces combating it, which will decide their future”.

          The Government and the ruling class will try their best to implement their policies by retaining the power and their supremacy over the people of the country and working class. But history has taught us that they cannot continue their anti-people, anti-worker policies forever. A day will come and the balance of power will definitely change in favour of the toiling masses of this country and the ruling class and their neoliberal policies will be thrown to the dustbin of history and an alternative force with alternative policies shall emerge defeating the policies of the present day ruling class. The alternative policy will never be the imperialist globalization polices. It will be a policy which will lead us to the path of socialism. That day shall come, no sooner than later. Such a change is not easy. We have to suffer and be ready for bigger sacrifices. NFPE is committed to this task.

          The power-that-be should not be under the illusions that the working class will not go for another strike in the near future. They should clearly understand that-“the fire that is burning with flames and the fire that is burning beneath the ashes, are both fire”. The fire beneath the ashes may burst out at any time again as a wild fire. The growing anger, protest and discontentment among the common people and workers may burst out at any time. No Government on earth can withstand such a mass upsurge of the common people and the toiling masses. Government should take note of the writings on the wall. Brutal killing of the workers, severe victimizations and using the force to suppress the protest, may not succeed.

          Comrades, the path before us is not full of roses, but full of obstacles and of sufferings. But we are sure that at the end of the tunnel, there will be light. If winter comes, can they prevent the onset of the spring? Let us move forward unitedly with the working class of our country and let us loudly proclaim without any hesitation that – “We are on the right path”.

Budget Summary

The Union Budget for 2013-14 aims at ‘higher growth leading to inclusive and sustainable development.’ With this as mool mantra, the Finance Minister Shri P Chidambaram has sought to increase allocation to key areas and provide incentives for investments and savings while containing the fiscal deficit to 4.8% of GDP.

Presenting the Union Budget in Parliament today, the Finance Minister expressed the hope that the India would achieve high economic growth despite slowdown in the global economic growth.

The Minister said that his government has been able to contain the fiscal deficit at 5.2% in 2012-13 by following the path of fiscal consolidation.  But the current account deficit (CAD) is a greater worry, the Minister added. He, therefore, proposes to encourage foreign investment that is consistent with India’s economic objectives.

The Finance Minister said that the other areas of concern addressed by his Government are inflation and government expenditure. “Our efforts in the past few months have brought down headline WPI inflation to about 7.0 percent and core inflation to about 4.2 percent. It is food inflation that is worrying, and we shall take all possible steps to augment the supply side to meet the growing demand for food items,” he said. The Minister further said that he had no choice but to rationalize government expenditure in view of huge fiscal deficit in 2012-13. “We also took some policy decisions that had been deferred for too long, corrected some prices, and undertook a review of certain tax policies.”

THREE PROMISES: TO WOMEN, YOUTH AND THE POOR

Shri Chidambaram made promises to the women, the youth and the poor -  the three faces that represent the majority of the people of India. Stating that the government pledges to do everything possible to empower the women and to keep them safe and secure, he said that a number of initiatives were underway and many more would be taken by the Government as well as non-government organizations. He announced the setting up of a fund - Nirbhaya Fund - with the Government contributing Rs. 1000 crore.

      

The Minister also announced a Rs. 1,000 crore scheme for training youth to boost their employability and productivity. The National Skill Development Corporation will be asked to set the curriculum and standards for training different skills.  Trained youth who pass a test at the end of training will get a monetary reward of Rs.10000 on an average. This initiative is likely to motivate 10 lakh youth.

For the benefit of the poor, the Minister assured that Direct Benefit Transfer (DBT) schemes will be rolled out throughout the country during the term of the UPA Government. “We are redoubling out efforts to ensure that the digitized beneficiary lists are available; that a bank account is opened for each beneficiary; and that the bank account is seeded with Aadhaar in due course,” he said.

RURAL DEVELOPMENT, AGRICULTURE AND FOOD SECURITY

The allocation for Rural Development Ministry has been raised by 46 percent to Rs 80,194 crore in 2013-14.

Pradham Mantri Gram Sadak Yojana (PMGSY)-II has been carved out to benefit States that have substantially fulfilled the objectives of PMGSY. This will benefit states such as Andhra Pradesh, Haryana, Karnataka, Maharashtra, Punjab and Rajasthan.

Ministry of Agriculture gets a rise of 22 per cent over the revised estimates (RE) for 2012-13, at Rs 27,049 crore. Rs 500 crore is being allocated to start a programme on crop diversification. It will encourage farmers in the original green revolution states to choose alternative crops. A pilot programme on Nutri-Farms will be started for introducing new crop varieties that are rich in micro nutrients, such as iron-rich bajra. A sum of up to Rs 200 crore is to be provided to start the pilots.

The Budget seeks to support Farmer Producer Organizations (FPO), including Farmer Producer Companies (FPC) which have emerged as aggregators of farm produce and link farmers directly to markets.

The target of agricultural credit for 2012-13 (Rs. 5,75,000 crore) is likely to be exceeded, and a target of Rs 7,00,000 crore farm credit has been fixed for the next year.

The interest subvention scheme for short-term crop loans is proposed to be continued for loans by public sector banks, RRBs and Cooperative banks, and expanded to private scheduled commercial banks. Under the scheme, a farmer who repays the loan on time is able to get credit at 4 cent per year.

Rs.307 crore have been provided for setting up of the National Livestock Mission. This will attract investment and enhance livestock productivity. A sub-mission of this Mission seeks to increase the availability of feed and fodder.

Expressing the hope that the National Food Security Bill will be passed by Parliament as early as possible, the Finance Minister has set apart Rs. 10,000 crore towards the incremental cost that is likely under the Act.

OTHER MAJOR ALLOCATIONS

Education has been allocated Rs. 65,867 crore, an increase of 17 per cent over the RE for 2012-13.

ICDS gets Rs. 17,700 crore representing an increase of 11.7 per cent. A multi-sectoral programme to tackle maternal and child malnutrition that was announced last year will be implemented in 100 districts during 2013-14. It will be further scaled up to cover 200  districts the year after.

Ministry of Health and Family Welfare has been allocated Rs. 37,330 crore.  Of this, the new National Health Mission that combines the rural mission and the proposed urban mission will get Rs. 21,239 crore - an increase of 24.3 percent over the RE.

The Backward Regions Grant Fund (BRGF) has been allocated Rs. 11,500 crore and will include a State component for Bihar, the Bundelkhand region, West Bengal, the KBK districts of Odisha and the 82 districts under the Integrated Action Plan.

Science and Technology related Departments have been allocated funds with substantial enhancements.

A National Institute of Sports Coaching is proposed to be set up at Patiala at a cost of Rs. 250 crore over a period of three years.

 Drinking water and sanitation will receive Rs. 15,260 crore. Rs. 1,400 crore is being provided for setting up water purification plants to cover arsenic and fluoride effected rural habitations.

The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) will receive Rs. 14,873 crore as against RE of Rs. 7,383 crore in the current year. Out of this, a significant portion will be used to support the purchase of upto 10,000 buses, especially by hill States.

Defence gets an allocation of Rs. 2,03,672 crore and the assurance that constraints will not come in the way of providing any additional requirement for the security of the nation.

Stating that adequate funds must be provided for programmes that benefit  women, children and minorities, as also the scheduled castes and scheduled tribes, the Finance Minister  proposed to allocate Rs 41,561 crore to the scheduled caste sub-plan and Rs 24,598 crore to the tribal sub-plan. The programmes relating to women get Rs. 97,134 crore and child budget, Rs. 77,236 crore. The Ministry of Women and Child and Development has been asked to design a scheme that will address women’s concerns, and an additional sum of Rs. 2,000 crore has been provided to the Ministry to began work in this regard. Ministry of Minority affairs has been allocated Rs. 3,511 crore and the Department of Disability Affairs, Rs. 110 crore.

INVESTMENT AND INFRASTRUCTURE

The Finance Minister stated that the key to restart the growth engine was to attract more investment, and that the government will improve communication of its policies to remove any apprehension or distrust in the minds of investors.

 A number of steps to mobilize investment have been announced in the Budget keeping in view that as per 12^th Plan the private sector will share 47 percent of Rs 55,00,000 crore investment in infrastructure. Infrastructure Debt Funds (IDF) will be encouraged. India Infrastructure Finance Corporation (IIFCL) will offer credit enhancement to infrastructure companies that wish to access the bond market to tap long term funds. Some institutions will be allowed to issue tax - free bonds up a total sum of Rs 50,000 crore (as against Rs 25,000 crore in 2012-13). Assistance of the World Bank and Asian Development Bank will be sought to build roads in the North Eastern States and connect them to Myanmar. The corpus of Rural Infrastructure Development Funds (RIDF) is proposed to be raised to Rs. 20,000 crore. A sum of Rs 5,000 crore will be made available to NABARD to finance construction of warehouses, godowns, silos and cold storage units designed to store agricultural produce.

Shri Chidambaram informed that the newly set-up Cabinet Committee on Investment has held two meetings and taken decisions in respect of a number of oil and gas, power and coal projects. CCI will take up some more projects shortly, he said. The Minister also informed that a regulatory authority is being constituted for the road sector. Bottlenecks stalling road projects have been addressed and 3,000 km  of road projects in Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh will be awarded in the first six months of 2013-14.

The Budget introduces an investment allowance for new high value investment. A company investing Rs. 100 crore or more in plant and machinery during the period 1.4.2013 to 31.3.2015 will be entitled to deduct an investment allowance of 15 percent of the investment (in addition to depreciation).

INDUSTRIAL SECTOR

Plans for seven new cities have been finalized for industrial corridors and work on two new smart industrial cities at Dholera (Gujarat) and Shendra Bidkin (Maharashtra) will start during 2013-14. A comprehensive plan is being prepared for the Chennai Bengaluru industrial corridor. Preparatory work has started for the next corridor - Bengaluru Mumbai industrial corridor.

Two new ports will be established in Sagar (West Bengal) and in Andhra Pradesh. In addition, a new outer harbour will be developed in the VOC port at Thoothukkudi (Tamil Nadu) through PPP at an estimated cost of Rs 7,500 crore.

A power transmission system will be constructed from Srinagar to Leh and for this Rs. 226 crore have been provided in 2013-14.

The oil and gas exploration policy will be reviewed to move from profit sharing to revenue sharing contracts. A policy to encourage exploration and production of shale gas will be announced. The natural gas pricing policy will be reviewed and uncertainties regarding pricing will be removed.

To provide greater support to Micro, Small and Medium Enterprises (MSMEs), the refinancing capability of SIDBI is proposed to be enhanced from Rs. 5,000 crore to Rs. 10,000 crore per year. SIDBI will also be provided a corpus of Rs 500 crore to set up a Credit Guarantee Fund for factoring.

Apparel Parks are proposed to be set up within the Integrated Textile Parks, to house apparel manufacturing units. A new scheme, Integrated Processing Developing Scheme, is being started to address to environmental concerns of the textile industry. Working capital and term loans to the handloom sector will be available at a concessional interest of 6 per cent. This will benefit 1.5 lakh weavers and 1,800 primary co-operative societies.

SAVINGS

The Budget proposes three measures to promote household savings. One, the income limit for Rajiv Gandhi Equity Saving Scheme for first time investors is being raised from Rs. 10 lakh to Rs. 12 lakh. Two, persons taking loan for first home up to Rs 25 lakh will be entitled to an additional deduction of interest of up to Rs 1 lakh. Three, instruments such as Inflation Indexed Bonds will be introduced to protect savings from inflation.

FINANCIAL SECTOR

Shri Chidambaram proposed to constitute a Standing Council of Experts in the Ministry of Finance to analyse the international competitiveness of the Indian financial sector.

The Finance Minister announced that Rs. 14,000 crore worth of capital infusion will be made into public sector banks. It will be ensured that these banks meet the Basel III regulations.

India’s first women’s bank is proposed to be set up with Rs. 1,000 crore as initial capital.

The government has finalized a number of proposals relating to the insurance sector in consultation with IRDA. These include empowering insurance companies to open branches in Tier II cities and below without prior approval of IRDA, having an office of LIC and a public general-insurance company in all towns with the population of 10,000, and  permitting banks to act as insurance broker.

The Rashtriya Swasthiya Bima Yojana, which cover 34 million families below the poverty line, will now be extended to other categories such as rickshaw, auto-rickshaw and taxi-drivers, sanitation workers, rag pickers and mine workers.

The Finance Minister proposes to evolve a comprehensive social security package by converging various schemes for life-cum-disability cover, health cover, maternity assistance and pension benefits.

A number of proposals relating to capital market have been finalized in consultation with SEBI. These include simplification of procedure and uniforms norms for foreign portfolio investors, clarity relating to FDI investment, allowing FIIs to participate in new areas, etc. 

BUDGET ESTIMATES

The total expenditure in the Union Budget 2013-14 is pegged at Rs. 16,65,297 crore. Out of it Rs.5,55,322 crore (33%) is Plan expenditure.  The non-Plan expenditure is estimated at Rs 11,09,975 crore.

The Plan expenditure in 2013-14 will be 29.4 per cent more than the revised estimates of the current year. All flagship programmes have been fully and adequately funded.

Juxtaposing economic welfare with the economic policy, the Minister said that the link between policy and welfare can be expressed in a few words: opportunities, education, skills, jobs and incomes. The Budget has before it one overarching goal - to create opportunities for the youth to acquire education and skills that will get them decent jobs or self-employment that will bring them adequate incomes that will enable them to live with their families in a safe and secure environment. The Budget sets a target of skilling 90 lakh people in 2013-14, for which funds will be released by the National Rural Livelihood Mission and National Urban Livelihood Mission.

TAXES

The General Budget reiterates that clarity in tax laws, a stable tax regime, a non-adversarial tax administration, a fair mechanism for dispute resolution and independent judiciary for greater assurance is underlying theme of tax proposals. It is proposed to set up the Tax Administration Reforms Commission.

As regards Direct Taxes, a relief of Rs. 2000 for the Tax Payers in the first bracket of Rs. 2 lakhs to Rs. 5 lakhs have been proposed. A surcharge of 10 percent on persons (other than companies) whose taxable income exceeds Rs.1 crore have been levied. Surcharge has been increased from 5 to 10 percent on domestic companies whose taxable income exceed Rs. 10 crore. In case of foreign companies, surcharge will increase from 2 to 5 percent, if the taxable income exceeds Rs. 10 crore. Additional surcharges to be in force for only one year. Mr. Chidambaram said, education cess to continue at 3 percent.

The Finance Minister announced the grant of investment allowance at the rate of 15 percent to manufacturing companies that invest more than Rs. 100 crore in plant and machinery during the period 1.4.2013 to 31.3.2015. Concessional rate of tax of 15 per cent on dividend received by the Indian companies from its foreign subsidiary proposed to continue for one more year. It is proposed that TDS at the rate of one percent on the value of the transfer of immovable property where the consideration exceeds Rs. 50 lakhs to be levied. Agricultural land to be exempted from TDS. Modified provisions of GAAR will come into effect from 1.4.2016. It is also proposed to increase the rate of tax on payments by way of royalty and fees for technical services to non-residents from 10 percent to 25 percent. The Budget also proposes to introduce Commodities Transaction Tax (CTT) in a limited way. However, agricultural commodities will be exempted. A number of administrative measures such as extension of refund banker system to refund more than Rs. 50,000, technology based processing, extension of e-payment through more banks and expansion of in the scope of annual information returns by Income-tax Department.

With regards to Indirect Taxes, the Finance Minister proposed no change in the normal rates of 12 percent for excise duty and service tax. Similarly, no change has been made in the peak rate of custom duty of 10 percent for non-agricultural products. Custom duty on free gold limit increased to Rs. 50,000 in case of male passenger and Rs. 1,00,000 in case of a female passenger subject to conditions. Duty on imported luxury goods such as high end motor vehicles, motor cycles, yachts and similar vessels increased. Custom duty on Set Top Boxes increased from 5 to 10 percent while on raw silk increased from 5 to 15 percent to boost domestic production. Custom duty on specified machinery for manufacture of leather and leather goods including footwear reduced from 7.5 to 5 percent. The Budget also proposes that period of concession available for specified part of electric and hybrid vehicles extended upto 31 March 2015.

Excise duty on SUVs increased from 27 to 30 percent. However, this will not apply to SUVs registered as taxies. Cigarettes will cost more as specific excise duty increased by about 18 percent. Similar increases are proposed on cigars, cheroots and cigarillos. Duty on mobile phones priced above Rs. 2000 has been raised to 6 percent from the current one percent.

The Budget proposes ‘Voluntary Compliance Encouragement Scheme’ where a defaulter may avail of the scheme on condition that he files a truthful declaration of Service Tax dues since 1.10.2007. It is a one-time scheme in which interest, penalty and other consequences will be waived.

The Budget proposes to mobilize Rs. 18,000 crore in which new proposals in indirect taxes will yield Rs. 4,700 crore and direct taxes of Rs. 13,300 crore.

In a major step to rationalize taxation on goods and services, the Budget has earmarked Rs. 9,000 crore towards the first installment of the balance of CST compensation. The Minister said that overwhelming majority States have agreed that there is a need for Constitutional amendment to pass GST law. It will be drafted by the State Finance Ministers and the GST Council, the Minister added. 

Source : PIB Release, 28 Feb, 2013

Highlights of the Budget

The Union Budget for 2013-14 aims at higher growth rate leading to inclusive and sustainable development as ‘mool mantra’.

·        Finance Minister makes three promises: to women, youth and the poor.

·        Nirbhaya Fund to empower women and to keep them safe and secure.

·        Proposal to set up India’s first Women’s Bank as a public sector bank.

·        Rs. 1,000 crore for skill development of ten lakh youth to enhance their employability and productivity.

·        Direct Benefit Transfer (DBT) Scheme to be rolled out throughout the country during the term of UPA Government.

·        Fiscal Deficit for 2013-14 is pegged at 4.8 percent of GDP. The Revenue Deficit will be 3.3 percent for the same period.

·        Plan Expenditure placed at Rs. 5,55,322 crore. It is 33.3 percent of the total expenditure while Non Plan Expenditure is estimated at Rs. 11,09,975 crore. The plan expenditure in 2013-14 will be 29.4 percent more than the RE of the current year i.e. 2012-13.

·        Substantial rise in allocation to the social sector.  Allocation for Rural Development Ministry raised by 46 percent to Rs. 80,194 crore.

·        The target for farm credit for 2013-14 has been set at Rs. 7,00,000 crore against Rs. 5,75,000 crore during the current year.

·        Rs. 10,000 crore earmarked for National Food Security towards the incremental cost.

·        Education gets Rs. 65,867 crore, an increase of 17 percent over RE for 2012-13.

·        ICDS gets Rs. 17,700 crore. This is 11.7 percent more than the current year.

·        Drinking water and sanitation will receive Rs. 15,260 crore. Rs. 1,400 crore is being provided for setting up water purification plants to cover arsenic and fluoride affected rural areas.

·        Health and Family Welfare Ministry has been allotted Rs. 37,330 crore. National Health Mission will get Rs. 21,239 crore which represents 24.3 percent over the RE.

·        The Jawaharlal Nehru National Urban Renewal Mission  (JNNURM) will receive Rs. 14,873 crore as against RE of Rs. 7,383 crore in the current year.

·        Defence has been allocated Rs. 2,03,672 crore.  

·        Rs. 3,511 crore have been earmarked to Minority Affairs Ministry, 60 percent higher than RE for 2012-13.

·        The Government will encourage Infrastructure Debt Fund (IDF) and allow some institutions to raise tax free bonds upto Rs. 50,000 crore which is 100 percent more than the current year. 

·        India Infrastructure Finance Corporation (IIFC), in partnership with ADB will help infrastructure companies to access bond market to tap long term funds.

·        Income limit under Rajiv Gandhi Equity Savings Scheme (RGESS) will be raised from Rs. 10 lakh to Rs. 12 lakh.

·        First home loan from a bank or housing finance corporation upto Rs. 25 lakh entitled to additional deduction of interest upto Rs. 1 lakh.

·        Proposal to launch Inflation Indexed Bonds or Inflation Indexed National Security Certificates to protect savings from inflation.

·        On oil and gas exploration policy, the Budget proposes to move from the present profit sharing mechanism to revenue sharing. Natural gas pricing policy will be reviewed.

·        On coal, the Budget proposes adoption of a policy of pooled pricing.

·        Benefits or preferences enjoyed by MSME to continue upto three years after they grow out of this category.

·        Refinancing capacity of SIDBI raised to Rs. 10,000 crore.

·        Technology Upgradation Fund Scheme (TUFS) for textile to continue in 12^th Plan with an investment target of Rs. 1,51,000 crore.

·        Rs. 14,000 crore will be provided to public sector banks for capital infusion in 2013-14. 

·        A grant of Rs. 100 crore each has been made to 4 institutions of excellence including Aligarh Muslim University, Banaras Hindu University, Tata Institute of Social Sciences, Guwahati and Indian National Trust for Art and Cultural Heritage (INTACH).

·        New taxes to yield Rs. 18,000 crore.

·        A surcharge of 10 percent on persons (other than companies) whose taxable income exceeds Rs.1 crore have been levied.

·        Tobacco products, SUVs and Mobile Phones to cost more.

·        Relief of Rs. 2000 for the tax payers in the first bracket of 2 to 5 lakhs.

·        ‘Voluntary Compliance Encouragement Scheme’ launched for recovering service tax dues.

·        Rs. 9,000 crore earmarked as the first installment of balance of CST compensations to different States/UTs.

Source : PIB Release, 28 Feb, 2013

Holding of limited Departmental Competitive Examination for filling up of the posts of MTS pertaining to the vacancies of 2009 scheduled to be held on 10.03.2013.

The LDC examination for filling up of the posts of MTS pertaining to the vacancies of 2009 will be held on 10.03.2013 (Sunday) from 10 AM to 11 30AM at BJB Autonomous College, Bhubaneswar-14. There are a total number of 529 candidates to appear in the said Examination for the Head Quarters Region, Bhubaneswar