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.