BUDGET 2013–14 - Key Expectations - JM Financial

- Single-window clearance could be announced for high-value projects.

- In one area, however, it is likely that the budget could take a populist stance. This is with respect to higher taxation on the super rich. While this generally proves to be counter-productive economically, the prevailing political winds around the globe - witness what is happening in the US - as well as looming elections mean that this move could easily be sold as a populist one.

- Increase in import duty on gold and other precious metals especially as part of the widening current account deficit is attributable to rising gold imports.

- In light of the hardships caused by inflation, some tax concessions/benefits are likely for the masses.

- Hike in Custom / Excise Duty ( Indirect tax ).

- Much awaited Hike in FDI in insurance from 26% to 49% and allowing FDI in Pension at 49% could be presented in budget session of Parliament and approval of the same would mean fresh foreign capital infusion into the sector.

- Introduction of CTT ( Commodity Transaction Tax)

- More clarity on Land Acquisition Bill and MMRD Bill.

- Lower dividend distribution tax from foreign subsidiaries (current 15%)

Source : Equity Bulls

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