The FM just read the Budget 2013 speech today. If you are keen what’s in store for you, do have a look at this Infographic. Let us know what you think about it.
i’m emailing it to my dad. you will get the most genuine feedback ever from a 74 yr old who hates trying to demystify all the stuff despite being a voracious reader 🙂
You can interpret it this way but, the exemption limit is 2 lakh itself.Just that if your income is Rs.220000 you will be liable for a tax of Rs.2000 (20000*10%), and as per new rules, since you have an income of upto 5 lakhs you will get a credit of Rs. 2000 which ultimately makes it tax free. We can not assume the exemption limit as 220000 because someone with an income of above 5 lakhs will not get the Rs.2000 credit.
Cool. This is a nice pictorial explanation of the budget. Good work Ronak.
Im not an expert on budgets or the economy, however my views are below:-
– The move to tax the luxury stuff will boost indirect tax collections. This is a good way to taxing luxuries instead of heavily taxing productive income/earnings. People who buy these can surely pay a bit more.
BTW the number of negligent and careless accidents by the rash BMW drivers will end (Im not refering to all BMW owners but only those who are careless)
– I dont understand the logic behind Womens PSU bank. Instead of this if he announced a scheme for women entrepreneurs, or for women in small-scale units or small occupations (crafts, weaving, etc) it would have been more meaningful. Education, healthcare and safety of women should have been other priorities. The women’s bank seems to be another vote grabbing stunt.
– Direct Tax Code – This is has become like a Maths textbook that we read in school – we never use or refer it (of course due respect to math experts who use it). DTC has only been talk, talk and talk…no action. Im not sure if it will see the light in the lifetime of PM/FM.
– Infrastructure: There have been some announcements about Mumbai-Bangalore and Bangalore-Chennai Corridor, and also about Road Regulator to oversee road projects.
– Real Estate: Except for the tax sop on new home loans, there is not much clarity on real estate regulation, introducing Real Estate Investment Trusts, etc. Singapore, Hong kong, which are just the size of a large state in India have REITs and attract international as well as domestic investors……we are still living in per-independence days as far as real estate investing is concerned…..its time to wake up.
– Super Rich Tax: The idea is reasonable and will generate additional flow, but not so significant. However, I think its not fair to burden someone just because they are earning more…..their earnings are also due to production, investment, employment, etc. I’m not supporting rich or poor, but if Govt. bothers the genuine rich with too many taxes and restrictions they will migrate to other nations or even set up business elsewhere….and thats a loss for us. Instead we should try to encourage them to invest in infra, manufacturing, etc to boost economic activity.
asha chaudhry
this is truly simplified ronak!
i’m emailing it to my dad. you will get the most genuine feedback ever from a 74 yr old who hates trying to demystify all the stuff despite being a voracious reader 🙂
Ronak
Looking forward to it, Asha. 🙂
Nameet Potnis
This is really nice! Thanks for simplifying these and making them graphically interesting!
Karan Pandhi
Dear Ronak,
The tax slab has and error, the new tax slab states the exemption limit at INR 2,20,000/-. thus we get a nominal INR 2,000/- of tax credit.
Ready made clothes will be cheaper and even foreign made yachts will have an increase duty from 10% to 25%.
You can also check on https://www.facebook.com/events/258806397587802/
It was an event set up by me. It’s my own freelance firm called F.I.A. do check out.
I would request you to change the same.
Warm Regards,
Karan Pandhi
Ronak
You can interpret it this way but, the exemption limit is 2 lakh itself.Just that if your income is Rs.220000 you will be liable for a tax of Rs.2000 (20000*10%), and as per new rules, since you have an income of upto 5 lakhs you will get a credit of Rs. 2000 which ultimately makes it tax free. We can not assume the exemption limit as 220000 because someone with an income of above 5 lakhs will not get the Rs.2000 credit.
Will check out FIA for sure.
Regards
Karan Pandhi
Thanks a lot Ronak,
This is for INR 5,00,000 income I was talking for. Your point is correct.
Ronak
Thanks Nameet. Glad you liked it, sir.
Milan Bavishi
Thanks Ronak and Futurewise team! 🙂
Ronak
Thank you Milan.
Cheers.
Vijay Khubchandani
Pretty Neat Stuff Ronak.. Keep them Coming.. 😉
shikha kothari
Thank You so much Ronak.. 1st time in my life i am able to get it right ;-)…
Ronak
Thats great to know. Glad, we were of some help.
Ronak
Thanks Vijay. Much appreciated.
Gurleen Kaur
Very nice Depiction…:)
Vijay
This is awesome , well done
Sridhar V
Cool. This is a nice pictorial explanation of the budget. Good work Ronak.
Im not an expert on budgets or the economy, however my views are below:-
– The move to tax the luxury stuff will boost indirect tax collections. This is a good way to taxing luxuries instead of heavily taxing productive income/earnings. People who buy these can surely pay a bit more.
BTW the number of negligent and careless accidents by the rash BMW drivers will end (Im not refering to all BMW owners but only those who are careless)
– I dont understand the logic behind Womens PSU bank. Instead of this if he announced a scheme for women entrepreneurs, or for women in small-scale units or small occupations (crafts, weaving, etc) it would have been more meaningful. Education, healthcare and safety of women should have been other priorities. The women’s bank seems to be another vote grabbing stunt.
– Direct Tax Code – This is has become like a Maths textbook that we read in school – we never use or refer it (of course due respect to math experts who use it). DTC has only been talk, talk and talk…no action. Im not sure if it will see the light in the lifetime of PM/FM.
– Infrastructure: There have been some announcements about Mumbai-Bangalore and Bangalore-Chennai Corridor, and also about Road Regulator to oversee road projects.
– Real Estate: Except for the tax sop on new home loans, there is not much clarity on real estate regulation, introducing Real Estate Investment Trusts, etc. Singapore, Hong kong, which are just the size of a large state in India have REITs and attract international as well as domestic investors……we are still living in per-independence days as far as real estate investing is concerned…..its time to wake up.
– Super Rich Tax: The idea is reasonable and will generate additional flow, but not so significant. However, I think its not fair to burden someone just because they are earning more…..their earnings are also due to production, investment, employment, etc. I’m not supporting rich or poor, but if Govt. bothers the genuine rich with too many taxes and restrictions they will migrate to other nations or even set up business elsewhere….and thats a loss for us. Instead we should try to encourage them to invest in infra, manufacturing, etc to boost economic activity.