Union Budget Expectations 2013-14 - B P WEALTH

Key Expectations

- The Finance Minister is expected to announce a roadmap for implementation of the new DTC and GST in the Union Budget.

- The Finance Ministry is likely to introduce inflation linked bonds, offer tax-saving incentives in insurance beyond the current one lakh limit under section 80C and extend tax exemption limits for medical insurance, reintroduce tax saving infrastructure bonds. Offering tax incentives for Pension products/MFs or include Rajiv Gandhi Equity Savings scheme.

- Deepening the corporate bond market and steps to improve the regime for foreign capital flows. Specific proposals include investment tax credit, depreciation benefits & Tinkering with LT capital gains tax on Infrastructure/ Corporate bonds

- Roadmap for reining in subsidies through Direct Cash Transfers etc

- On the Indirect Tax front government Excise duty to be hiked on selective sectors, Increase in excise duties, esp on large diesel passenger vehicles, MAT is expected to increase from current 18.5% to 20%

- Government to give roadmap for major economic reforms like land acquisition bill, FDI in insurance and pension

Source : Equity Bulls

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