New Delhi, 28th Feb: Finance Minister P Chidambaram on Thursday didn’t mess with the Income Tax slabs while presenting the Union Budget 2013-14 in the Lok Sabha. As part of his tax proposals, he gave a benefit of Rs 2,000 to individual tax payers with taxable income of up to Rs 5 lakh.
Chidambaram also imposed a surcharge of 10% on those earning over Rs 1 crore in a year. The surcharge would be payable for the 2013-14 fiscal only.
The Fin Minister announced that first-home buyer who takes a loan for an amount not exceeding Rs 25 lakh would be allowed an additional deduction of interest of Rs 1 lakh to be claimed in assessment year 2014-15.
But in bad news for consumers, the Finance Minister made mobile phones, cigarettes and luxury vehicles costlier by hiking duties on these products.
Chidambaram also announced the setting up of Nirbhaya Fund for women safety and allocated Rs 1,000 crores to it.
Union Budget for 2013-14
- No case to revise either tax slabs or rates
- Some relief to tax payers in Rs 2 lakh to Rs 5 lakh bracket
- Tax credit of 2,000 rupees for incomes of upto 5 lakh rupees
- Surcharge of 10% on people with income over 10 mln rupees
- Surcharge on high income tax payers only for one year
- Education cess to continue at 3%
- Donation to national children fund to get 100% tax relief