Budget 2013 India: Should you really be calling yourself RICH?
With the finance minister using the tax axe on the uber rich, there are many reasons why you shouldn't be one
March 01, 2013 / 14:30 IST
Khyati Dharamsi
Have you been earning heaps through your business? The tax axe is well aimed at cutting it short. Splurging cash at the wrong places would mean higher expenses this year as the finance minister’s stinging-tax dart is aimed at the super rich this Budget. As there is no tax saving by way of change in tax slabs or rates, here we suggest some measures to avoid the budget tax sword this financial year. Salary: Don’t aim above the markHave you been drawing a salary of more than Rs 1 crore annually and feature among the claimed 42,800 persons mentioned by P. Chidambaram. There would be a surcharge of 10 percent applicable this financial year if you not just individually, but as even as an HUF earn Rs 1 core or more per annum. So, aim for a lower salary figure this year. Butt them notDo you fancy cigars, cheroots, cigarillos or even your normal cigarette. The specific excise duty on cigarettes has been raised by a steep 18 percent. It’s time to call it quits.Mosaic flooring ain’t that badRenovating your home and replacing the cracked tiles with good-old marble? Think again. The duty on marble has been raised to Rs 60 per sq meter from Rs 30 per sq meter.When it’s your car, Small is big Don’t like the legspace and the drive in your small Indian manufactured car? If you have been looking forward to book an SUV or an imported luxury car then it’s time to rethink. R=Irked by the higher parking space that SUVs eat up, the finance minister has decided to increase the excise duty on SUVs to 30% from 27% earlier. Also, imported luxury car purchase would not gel well with your tax considerations as there is an increase in customs duty on imported luxury cars to 100% from 75%. If you are a two-wheeler freak and have ordered for imported motorcycle (above 800 cc) you would pay a 75% duty now instead of 60%.Vacation on a yacht? Change plansThe finance minister has decided to climb down upon the affluent people who have been splurging on buying yachts and has increased the duty to 25% vis-à-vis 10% hitherto. So, you’ll have to disappoint your partner if you had promised her a yacht trip this summer. Go desiWear desi and step on desi textiles. Handmade carpets and floor coveringsof coir and jute have been completely exempt of excise duty. And if you have sworn by the Armani and Ralph Lauren then you can consider giving in to the liking and use Made in India cotton clothes as there is a zero excise duty applicable on them. Say hello to low-cost cell phonesYou will have to shell out 6% additional excise duty if you cannot do without your Google Nexus or the high-end Samsung and HTC smart phones. The excise duty on phones, both domestic and internationally manufactured, priced above Rs 2000 would attract this higher duty. Ghar ka khana is yummyDidn’t you read about Taj Group seeking help from home makers to dish out “homestyle” menu. Take a leaf and say no to eating out in this sweltering heat as a service tax would now be levied if you lunch in at any air conditioned restaurant and not just those which served liquor as proposed in the previous Budget session.Gift children smilesDoing your bit for the society is what everyone aims for. If you have been donating every year, you can this year contribute to the National Children’s Fund, donation to which is now eligible for 100% deduction.A thousand saved is a thousand earned and savings thus made would go a long way. In his own words the finance minister has laid the path for life after Budget 2013-14. “The last day of February is another day in the life of a nation. We pause today, to reflect on the past and the future, and we shall resume our work tomorrow. Our work will be seen in our actions.”
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