Direct Tax Proposals in Union Budget 2013

&

Rotary Foundation Grants

BRIEF SNAP SHOT ON UNION BUDGET 2013-

2014

Union Budget is an exercise to take stock of the financial position

Growth rate had declined from 9.3% in 2010.11 to 5% in 2012.13

Fiscal Deficit is the difference between Revenue Receipts and Total Expenditure

Fiscal Deficit as a % of GDP

Year As a % of GDP

2008-09

Actual 6.0%

2009-10

Actual 6.5%

2010-11

Actual 4.8%

2011-12

Actual 5.7%

2012-13

Actual 5.3%

2013-14

Projected 4.8%

Macroeconomic indicators: Increasing current account deficit, high inflation, declining savings and investment and falling consumption

Plan of action: Fiscal Consolidation, provide Impetus to Economic Growth and Stimulate Investment

Tax Revenues : The tax proposals in the Budget for 2013-14 help raise Rs.18,000 Crores

Amendments proposed to the Direct Taxes

1. Personal Taxation No change in Basic Exemption Limit.

Tax slabs for Financial Year 2013-14 will be the same

Rebate of Rs. 2,000 for Individuals only having total income up to Rs. 5,00,000

2. Surcharge on Income tax

10 % Surcharge is payable on total income above Rs. One Crore in a

year

3. Additional deduction of Interest on Housing Loan One time deduction of Rs.1,Lakh on Housing Loan below Rs.25 Lakhs.

Value of new house should not be more than Rs.40 Lakhs.

This deduction is for loans sanctioned between April 2013 and March 2014

4.Rajiv Gandhi Equity Saving Scheme Deduction of 50% of amount invested in equity shares

Retail individual investor with a total income up to Rs.12,00,000

Investments can be either listed Equity Shares or Units of Equity Oriented Funds

Deduction for three consecutive assessment years now

Changes in Corporate Taxation

Surcharge on Income Tax is increased from 5% to 10% in case of Domestic Companies

Surcharges increased from 2% to 5% in case of Foreign Companies

New Investment Allowance of 15% on investments of more than Rs.100 Crores in new Plant and Machinery

TDS on Immovable Property

T.D.S of 1% to be deducted U/s 194A on Sale Consideration of Immovable Property exceeds Rs. 50 Lakhs

To be made by the buyer of the Immovable Property at the time of making payment

If seller does not possess a PAN 20% has to be deducted instead of 1%

Property purchased for Inadequate Consideration Immovable property received by an Individual or H.U.F for inadequate consideration will be taxed as Income from Other Sources.

Other Changes Deductions U/s 80G for National Children Fund increased from 50% to 100%

Return of Income will be treated as defective if Self Assessment Tax along with Interest is not paid before the date of furnishing the return.

Rotary Foundation Grants

Rotary Foundation has developed a Future Vision Plan.

The Vision Statement of Rotary Foundation

New motto of Rotary “ Doing Good in the World”

The Future Vision Plan is

Simplify Foundation Programs and Process

Offer program options to achieve local and global goals

Transfer Rotary Foundation decision making to Districts

Greater understanding of Rotary Foundation’s work and enhance Rotary’s Public Image

Three Rotary Foundation Grants

1. Rotary Foundation District Grants

2. Rotary Foundation Global Grants

3. Rotary Foundation Packaged Global Grants

1. Rotary Foundation District Grants

Block grants made to Districts up to 50% of District Designated Funds.The purpose is to respond quickly for immediate needs or to plan projects with clubs locally.

Benefits of Rotary District Grants More say in District Designated Fund allocations.

More flexibility

Funds for Local and International projects

District has quicker access to FundsClubs may partner with other Clubs or other District

2. Rotary Foundation Global Grants

six areas of focus Peace and Conflict Resolution

Disease Prevention and Treatment

Water and Sanitation

Maternal and Child Health

Basic Education and Literacy

Economic and Community Development

Rotary Global Grants Proposals

Requires an International Partner who is

qualified

Must be measurable and sustainable

Must have a minimum project budget of $ 30,000 and a maximum of $ 2,00,000

Proposals must be accepted by Rotary Foundation before an application is made

Proposals should be routed through the District.

3. Rotary Foundation Packaged Global Grants

Opportunities for Clubs and District to work with strategic partners of the Rotary Foundation.

Strategic Partners have expertise in Focus Areas. Rotary Foundation and strategic partners will provide 100% funding for Packaged Global Grants.

Thank You