Feb 11, 2013, 08.17 PM IST | Source: Moneycontrol.com

Union Budget 2013: Hike service tax exemption limit to Rs 20 lakh: EPCH

Lock-in period for tax saving deposits be brought down to three years from the current five years to bring it on par with tax saving equity linked savings schemes and to channelize more funds into the banking sector.

Dun & Bradstreet India

  • Lock-in period for tax saving deposits be brought down to three years from the current five years to bring it on par with tax saving equity linked savings schemes and to channelize more funds into the banking sector.
  • Removal of Security Transaction Tax (STT) on equity market or Imposition of Commodity Transaction Tax (CTT) on commodity trading to attract investments in the capital market.
  • Commercial banks to be allowed to issue tax-free infrastructure bonds as has been allowed to other financial institutions as banks have good distribution network to raise funds and can finance infrastructure projects.
  • Tax sops like increasing the Tax Deducted at Source (TDS) limit on fixed deposit to Rs 25,000 which at present tax is deducted at source on interest earned from fixed deposits of Rs 10,000 and above.
  • Tax exemption of Rs 20,000 under Section 80CCF for investing in infrastructure tax free bonds and inclusion of affordable housing sector in the infrastructure segment.
  • Extension of agriculture interest subvention scheme to self-help groups and exemption of social security insurance schemes from service tax.
  • Tax concessions for issuing perpetual bonds, which is counted as Tier I or equity capital.
  • Urban Cooperative Banks be treated at par with those in rural areas.
  • Separate deduction for equity-linked savings schemes apart from the Rs 0.10 mn Section 80C limit.
  • Reduction in the tax burden on debt funds as both long- and short-term capital gains from debt funds are currently taxed, unlike in equity funds, where long-term capital gains are tax-free.
  • Reduction or removal of dividend distribution tax on debt funds as dividends from equity funds are tax-free.
  • Rajiv Gandhi Equity Savings Scheme (RGESS) to be extended to all equity investors and not just first-time investors with the removal of Rs 1.00 mn annual income cap in order to broaden the market for RGESS.
  • Allowance of income tax benefits on long-term mutual fund schemes such as retirement funds.
          Forging body seeks low costs, ban on ore export in Budget

Micro, Small and Medium Enterprises (MSMEs):

  • In view of the slowdown in global demand, exporters of handicrafts, as represented by the Export Promotion Council for Handicrafts (EPCH) has made several suggestions to the Government, including duty free import provisions of essential embellishment, trimmings, tools and consumable to the handicrafts sector; increase in exemption limit for levy of service tax from Rs 10 lakh to Rs 20 lakh; and extension of exemption of income tax under 10B to 100% export oriented units.

ADS BY GOOGLE

Buy & sell politicians on Power Play
- the political stock exchange

Price Update

Arvind Kejriwal

1723.25 37.31 2.21%

124813

Bought today

13427

Sold today

0.45%

User holding

video of the day

Add cyclicals, banks on positive poll outcome: UBS

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.