The following are the major Highlights of the Union Budget 2013-14 presented by the Hon’ble Finance Minister Mr. P. Chidmabaram in the Parliament on Thursday (i.e. February 28, 2013)
A. Corporate Direct TAX:
· No change in the Corporate Income tax rate of 30%.
· No change in the rate of Minimum Alternative Tax (MAT) on Book profit of 18.50 percent.
· No change in the rate of Surcharge of 5.00% (for income exceeding Rs.1 Cr), but Surcharge will be 10% in case income exceeds Rs. 10 Crores.
· No change in the rate of Secondary and Higher Education cess of 3%.
· The effective Corporate Tax rate of 32.445% and MAT on Book Profit of 20.01 percent remain in case income below Rs. 10 Crores otherwise 33.99% and MAT @ 20.9605%.
· No change in the rate of tax on Short term capital gains on listed securities subject to Securities Transaction Tax of 15%.
· No change in the rate of Dividend Distribution Tax (DDT) however, surcharge increased to 10% . Effective rate of DDT is now 16.995%
· Withholding tax on Royalty payments to non –residents increased to 25%.
· Additional investment allowance @ 15% for acquisition of new plant & Machinery purchased of Rs. 100 Cr. or more after 1.4.2013 and before 31.3.2015.