PowerPoint Presentation

General Budget 2014MINUS Scheme (relevant Economic Survey Chapter)+ Ch2 and Ch3

Revenue collectedAll the loans raisedInterest/principle receivedNeed approval of legislature? YES.

Consolidated Fund: 266National Investment fund (05)Nat. Calamity & contingency fund (NCCF)National small savings fund, defense fundPrarambhik Shiksha KoshMNREGA fundState provident fund, Postal insurance, Money orders etc.

Need parliament approval? NOPublic Account: 266For unforeseen eventsUnder President (operate by Fin.Secy.)Need parliament approval? NOContingency fund: 267

All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the ___?Contingency Fund of IndiaPublic AccountConsolidated Fund of IndiaDeposits and Advances Fund2011

Governor: 202(1)

BudgetIncome, Expenditure TAXCFIArt.112: Budget (AFS) shall distinguish Expenditure on revenue part, from other Expenditures.

On Income/ ExpenditureIncome tax Corporate Tax (and MAT)Interest tax (on banks)Hotel receipt TaxFBT

Wealth TaxSecurities transaction Tax (STT)Banking cash transaction taxEstate dutyGift taxDirect taxon properties/assets/Capital transactionUnionTax on IncomeIncome taxCorporation Tax (and MAT)

Taxes on incomeAgriculture income taxProfessional tax

States

UnionTax on assetsWealth TaxSTTTaxes on assetsLand RevenueStamp dutyProperty tax in urban areas

States

Taxable IncomeTax2.5 to 5 lakh3-5 (Senior)10%5 to 1020%>1030%Direct Taxes in Budget 2014Corporate tax~34%MAT~21%Corporate tax (foreign)~43%Wealth tax (>30 lakh)1%STT0.001%-0.25%Direct Taxes in Budget 2014Gross IncomeDeduction, exemptionTaxable income(10, 20, 30)SurchargeCessCess SurchargeSurchargeCorporate tax : 1 lakh10% surcharge1.10 lakh(tax + surcharge)3% cess3% x 1.10 lakh=3300 RupeesCessSurcharge--Specific purpose Education cess 2%Secondary- Higher edu 1%Prarambhik Shiksha KoshSSA, Mid day mealCessInvestment limit 80CPension, PPF, insurance1 lakh=> 1.5 lakhHome loan interest deductionYearAs % of GDP2009>33%2012~30%Promote SavingsMfg. companies investment allowance10 year tax holiday: power generationSurvey ch.9, 10, 115% TDS foreign bonds raised by indian cos.Advance tax rulingAdvance pricing agreementDividend on foreign subsidiaries, TDSSurvey ch. 6,7

Boosting industries, investment

Indirect (Union)Custom Duty (Import, Export)Excise Duty (CENVAT system)Service TaxCST (but entirely given to States)

Sales tax/VAT (newspaperX)Excise on liquor, narcoticsMotor vehicle tax, animal,boats, TollsLuxury tax, betting-gamblingEntertainment taxElectricity taxAdvertisement tax (TV/radio/Newspaper..X)

Indirect Taxes (State)

Raw material used in spandex yarnFatty acids, crude palm stearin, Crude glycerinSteel grade limestone, dolomite Battery waste and battery scrapCoal tar pitch ethane, propane, ethylene, propylene, naphthalene etc.methyl alcohol and denatured ethyl alcoholCustom: ReducedCathode ray tubes0%LCD, LED panels (