BUDGET 2013 10 POINTS AGENDA

1.      Personal Income Tax

·         Raising Basic Exemption Limits to Rs 3 lakhs

·         Raising Limits of deduction u/s 80C and Sec 80D

·         Interest Deduction for Housing Loan to be increased from Rs 1.5 Lakhs to Rs 5 Lakhs.

2.        Manufacturing Sector

·         Reduction of Service Tax and Excise Duty from 12% to 8% taking in to consideration the slowdown in Economy.

·         Customs Duty may be increased in selective areas to protect the sector from cheap goods flowing in from China. Eg:

3.      Implementation of Act

·         There is an urgent need to implement and integrate Direct Tax Code, Goods and Service Tax, Ind A.S and the Companies Bill.

4.      Banking Sector

·         Capital infusion is required in the Public Sector Banks to meet the requirements of Basel III norms and for reaching out to more people in rural areas.

5.      Subsidies

·         Phasing out of Subsidies on Diesel, Kerosene and LPG to reduce the Fiscal Deficit.

·         Reduction of Subsidy under Foods Security Act as the amount has exceeded 36% more than 2012 budget estimate. The focus should also be on improving the distribution system of food and vegetables which will help in reducing inflation.

6.       Infrastructure Sector

·         Exemption of MAT for infrastructure sector u/s 80IA where the companies pay tax on book profits during the exemption Period

·         Unlisted and Listed Indian Companies should be allowed, as an option, to set up an overseas entity for raising equity abroad for investing the same in India.

7.      Solar Energy

·         10 year Tax holiday on Solar Energy should be announced u/s 80 IA

·         Solar energy is to be treated as a separate sector and not to be under power sector as a result of which funds available to this sector will increase.

8.       Stimulus Package

·         India is in need of a stimulus package part II similar to one that was introduced in the year 2008 and 2009 during the recession. (Eg: Incentives for loans, Export incentives, credit guarantee scheme)

9.       Employment Opportunities

·         National Manufacturing policies and National Electronics Policy must be laid down which has a potential to create 28-100 million jobs in the coming decade.

10.    IT Sector

·         The Budget must address the issue of packaged software on which VAT and service tax is charged.

REPUBLIC DAY SPEECH

Good Morning dear friends. Today we are all assembled to celebrate our 64th  Republic Day. A day when we remember all our great leaders who have fought for independence of our country. For our independence.  It’s because of them we are able to enjoy a free life today ruled by no one.

Leaders have proved that we can win war without using guns and machines. By maintaining values, practicing ethics India has won a war over British. India before Independence, celebrated 26th January as Republic day. But we got our independence on 15^th August 1947. What happens to 26^th Jan ?  So on 26^th January 1950, constitution of India was formed and thereafter we have celebrated this day every year as Republic day.

Life for us has not been easy. We were very poor at the time of Independence. We have come a long way since then. We are now acquiring  international companies, Our GDP growth is one of the best in the world at a time when the entire world was in recession, we have the best technicians in the field of IT, medicines, accounting and so on. It is the beginning of new era. An Era of Indias growth. A country which the entire world is looking up to. This is the best time for India.

But then how does our country grow from here. Yes, its us, you my friends are going to play a crucial role in the progress of the our country. You are the backbone of our countrys future.

We must be a part of Indias growth story and not of any other country. We must maintain our integrity, values and ethics at all times as people rely and trust us more than anybody else. Padmasri TN Manoharan, Past President of ICAI is a great example on how his team revived satyam. He is a role model for all of us.

We must change to see our country change.- A change in the right direction.

Our country is a symbol of great diversity in every form. I wish the feeling of oneness remains in the heart of every Indian in our movement to glorious future.

May god bless you all

Jai Hind

BUDGET 2013 EXPECTATIONS- DIRECT TAXES

GDP growth of India has not lived up to the expectation as per the Finance budget 2012. The Fiscal Deficit of India is ever increasing and a threat of India moving to Junk status, the government will be looking to cut down unnecessary expenditures and come out with a stimulus package to spur the growth in the country similar to one during the 2008 recession.   2013 will be a political turnaround year as it’s a year before the elections and government will look to utilize these opportunities. 

With the Income Tax Act moving more in lines with Direct Tax Code and increase in disposable income, there is an expectation that the Basic Exemption limit would be raised to Rs 2.5 Lakhs and an increase Sec 80C limit to Rs 2,00,000. There is a need to increase the medical expenditure limits u/s 80D and Provision to section 17(2) as medical facilities are not cheaper anymore. There is likelihood that Sec 80CCF may be reintroduced in the lines of infrastructure bonds over and above Sec 80C.

Moving on there is still no clarity on implementation of DTC, GST and Companies Bill. These acts have to be well integrated before they can be implemented. The current situation of standoff between the state and central government may see the implementation process being delayed.

With the FDI in various sectors being opened up, certain benefits will be provided in form of additional depreciation, land allocation, tax holidays or specific exemptions to encourage their setup. The manufacturing sector may get added boost in the budget as industry specific tax sops may be provided by the government. (Eg: Automotive industry)

The Indian Banking sector has been reaching out to more people in rural areas and a considerable amount would be set  aside for capital infusion in to PSBs. The allocation for Defence has been ever increasing and 20% additional allocation may take place over previous years budget.

Rs 20, 000 crores may be set aside for Direct cash transfer scheme and additional amount may be allocated to aadhar scheme. There will be considerable allocation for Infrastructure sector  for development of Railways, Road transport, education and so on. Schemes such as NREGA need to be scrapped as they are meaningless.

The budget will require to address key issues on fiscal deficit, inflation, depreciation of rupee and lead an accelerated growth in India s development.  2013 is a crucial year for India and the budget will play a key role to it.