Budget 2013 :- Live Webcast

Budget Highlights :-

• Markets trade with a negative bias. Sensex down 54 points, Nifty trades 27 points lower 
• To present draft bill on GST in the next few months 
•   Budget Impact: Acil Cotton Inds (up 11%), Malwa Cotton Spg (up 8%), Suryalakshmi Cotton (up 5%), Nahar Ind. (up 1.5%) 
•  Scheme to encourage truthful declaration of Income Tax dues from 1-10-2007 
• Penalty to be waived for people declaring I-T dues; can pay in two installments 
•  Budget Impact: proposals for spinning and cotton textile sector sees stocks from these spaces rally 
• Will impose Service Tax on all AC restaurants, not just on those serving alcohol 
•  Sops for low-cost housing to continue 
• To include 2 services in negative list of Service Tax - vocational courses and testing services 
•  Excise tax on SUVs has been raised from 27 to 30%. SUVs were driving the car market. It will be interesting to see if the buoyant market can absorb this price increase: Bhupesh Bhandari, Senior Associate Editor, Business Standard 
•  Cotton - zero Duty at fibre stage 
•  Removes carpets from Excise Duty bracket altogether 
•  Budget Impact: Change in duty structure for cigarettes negative for ITC 12:39 PM 4% Excise Duty on silver for manufacturing zinc or lead
•  Excise duty hike on cigarettes unlikely to impact companies as the hike is passed on: Shishir Asthana, Consulting Editor, Business Standard 
• Special Excise Duty (SED) on cigarettes hiked by 18% 
• Excise Duty to be hiked from 27% to 30% on SUVs. Those registered as taxis to escape hike
• 20% Final Withholding Tax on unlisted companies' share buyback 12:36 PM Customs Duty on imported cars hiked from 75% to 100% 
• To introduce DTC Bill in Budget session of Parliament 
•  Budget Impact: Reduction in STT pushes up listed brokerages. Religare, Aditya Birla Money, Indiabulls Securities, Motilal Oswal up 1.7 to 5%
•  12:34 PM MRO concession good for companies like M&M and Taneja Aerospace: Shishir Asthana, Consulting Editor, Business Standard 
• Import Duty on set-top boxes raised from 5% to 10% 
•  No change in standard rate of Excise Duty 
• Excise on leather goods to be reduced from 7.5% to 5% 
•  Modified provisions under GAAR to be effective from April 1, 2016
•  No tax slab change, and only a Rs 2,000 tax credit for those earning an annual income of Rs 2 lakh to Rs 5 lakh means the benefit would be restricted only to the lowest slab and not shared by those in the higher income slabs, says A K Bhattacharya, Editor, Business Standard 
•  Securities Transaction Tax(STT) reduced from 0.17% to 0.1% 
•  Commodities Transaction Tax of 0.01% on non-agricultural commodity derivatives 
• Market Impact: Markets slip post tax proposal announcements. Sensex trades 60 points lower; Nifty slips 28 points 
•  Introduction of Commodity Transaction Tax (CTT) bad for MCX: Shishir Asthana, Consulting Editor, Business Standard 
•  Tax holiday for power plants extended to FY14 
•  Budget Impact: Tax holiday for power plants extended. NTPC, Adani Power, Neyveli Lignite, Reliance Power, Indowind Energy trade firm 
• Tax Deducted at Source (TDS) at 1% on the transfer of immoveable properties worth more than Rs 50 lakh 
•  Extends Section 80-IA by one year Good for infrastructure company. A longer term clarity was needed as fas as this exemption was concerned, which the FM has not addressed Shishir Asthana
•   Indian companies not to pay Dividend Distribution Tax for income coming from foreign subsidiary 
•  Dividend Distribution Tax (DDT) surcharge raised from 5% to 10% This announcement will be taken negatively by the market. Dividend yield stocks to be hit Shishir Asthana 
•  Will continue with Educational Cess at 3% 
•  Additional tax surcharge on taxes only for one year 
•  Tax surcharge of 10% on companies with annual income of more than Rs 10 crore An immediate impact on the bottomline across corporate India. Market touches a new low on this announcement Shishir Asthana 
•  Only 42,800 people who have been known to have income of more than Rs 1 crore per year year. Tax surcharge of 10% on such income. 
• Tax credit of Rs 2,000 to every taxpayer in the Rs 2,00,000-Rs 5,00,000 bracket. FM leaves tax slabs and rates untouched 
•  Market Update: Markets trade flat with a positive bias. Sensex up 15 points, Nifty up 5 points 
• 2011-12: Tax GDP ratio at 5.5% for direct taxes and 4.4% of GDP for indirect taxes 
•  Investment allowance of 15% announced for high-value investments of above Rs 1,000 crore. This is a huge plus for large companies, as it improves profitability considerably: Bhupesh Bhandari, Senior Associate Editor, Business Standard 
• Budget Impact: Wind energy sector to get generation based incentives; Rs 800 crore allocated to the departmet. Suzlon Energy slips nearly 3% to Rs 23.55 per share
•   Direct Benefit Transfer Scheme to be rolled out during term of UPA government 
•  Fiscal deficit contained at 5.2% in FY13, pegged at 4.8% in FY14 Marginally lower than Economic Survey deficit figure of 5.3%, but enough to stop market decline for time being Shishir Asthana 12:16 PM Markets have gone into the red. Investors perhaps find the budget long on populism: Bhupesh Bhandari, Senior Associate Editor, Business Standard 
•  Budget Impact: Realty stocks rally on proposal for additional interest deduction on housing loan. DLF, Sobha Developers, Ansal Properties, DB Realty up between 1 and 5% 
•  Plan expenditure: Rs 5.55 lakh crore, Non-plan expenditure at Rs 11 lakh crore in FY14 
•  New fund for safety for women, will be called Nirbhaya Fund. Allocation of Rs 1,000 crore 
•  Market Update: Markets slip into the red. Sensex down 11 points, Nifty lower by 5 points Not a big bang budget, but small steps to go a long way in kickstarting the economy. Malini Bhupta, Associate Editor
•   FII participation in forex segment subject to FX exposure 
•  Defence outlay at Rs 2 lakh crore represents only a marginal rise over Rs 1.93 lakh crore in the current year. FM though has assured that he would provide more if the security of the country demands it: A K Bhattacharya, Editor, Business Standard 
•  294 more cities to have FM radio 
•  Auction of new FM licences in FY14, so that all towns and cities of up to 1 lakh population are covered, is another attempt to raise non-tax revenue, says Bhupesh Bhandari, Senior Associate Editor, Business Standard 
•  Cities having population of more than one lakh to have one private FM radio station Population too small making it not feasible for existing players. Shishir Asthana 12:10 PM Stock exchanges to have dedicated debt segments 
•  Rs 5,200 crore allocated to Ministry of Science and Technology 
•  Rs 5,880 crore to space research 
•  National Skill Development Corporation -- target to train more people, up by 9 mn in 2013-14 
•  Investment allowance of 15% announced for high-value investments of above Rs 1,000 crore Not a big bang budget, but small steps to go long way in kickstarting the economy. Malini Bhupta, Associate Editor 
•  Increased allocation to Defence at Rs 2.03 lakh cr; Rs 86,741 cr for capex 12:05 PM Sebi to simplify procedures for FII, unify categories Clarity will be needed if P-Notes as a category will be removed, if so account holders will have disclose themselve as per the KYC norm.
•  Market Update: Coal India (up 3.2%), DLF (up 3%), JP Associates (up 2%), L&T (up 1.3%), BHEL (up 1.3%) among top Nifty gainers 12:05 PM Will encourage states to take up waste energy projects via PPP mode 
• Wind energy sector to get generation based incentives; Rs 800 crore allocated to the department Industry expectation of depreciation based incentive not met -- bad for companies like Suzlon Shishir Asthana 
•  Insurance, pension companies can directly trade in debt market 
• Market Update: Sensex up 55.40 points at 19,208; Nifty up 14 points at 5,810 
•  FIIs allowed to participate in currency derivatives segment Can increase arbitrage volume in the stock exchnages. Good for broking stocks Shishir Asthana 12:02 PM Mutual Fund distributors allowed to become members of Stock Exchanges
•  Will follow global policy on determining whether investment is FII or FDI: Where it is less than 10% by one entity, it will be FII, more than 10% will be FDI 
•  KYC of banks sufficient for buying insurance policies A good move to promote insurance product, good for companies like Aditya Birla Nuvo, HDFC Bank and ICICI Bank Shishir Asthana 
• Sebi Act to be amended to strengthen the market regulator 
•  FM seeks Opposition's support on Insurance, PFRDA Bills
•   Loans for rural housing -- last Budget saw allocation of Rs 4,000 crore, this time Rs 6,000 crore to Rural Housing Fund in 2013-14 
•  Banks to be permitted to act as insurance brokers Most banks already have a tie-up with some insurance company -- unlikely to have a big impact Shishir Asthana 
•  All Women's Bank to be set up via PSU route An Indian womens bank. A prime example of tokenism towards gender equality! What will stop men from borrowing from it by proxy? Kanika Datta Senior Associate Editor 
•  150,000 weavers, 1,800 co-operative societies to benefit on allocation of additional sum of Rs 96 crore to Ministry of Textiles for internal subvention
•   Will ensure PSU Banks always meet Basel III norms 11:54 AM Budget Impact: PSU Banks rally on capital infusion proposal. Union Bank Of India, PSB, Corporation Bank, Central Bank of India, IOB move up over 1% each 
• To constitute panel on transaction costs, finance policies 
•  To provide Rs 14,000 crore for Public Sector Bank recap Good for all PSU banking stocks Shishir Asthana 
•  Funding by companies for technological research in colleges and educational institutions to be treated as part of mandatory CSR under Companies Act 
•  Budget Impact: Textile stocks -- Birla Cotsyn (India), Gokak Textiles, Celebrity Fashions, Alok Industries, Arvind up between 1 and 9% 
• Budget Impact: Focus on TUFF scheme, textile parks, handloom sector. Stocks rally. 
•  Two major ports in West Bengal and Andhra Pradesh to add 1 million tonne of capacity Investment allowance of 15 per cent announced for high-value investments of above Rs 1,000 crore. This is a huge plus for large companies, as it improves profitability considerably. Bhupesh Bhandari, Senior Associate Editor 
•  Higher allocation for water treatment Good for companies like VA Tech Wabag and Ion Exchange 
• Coal import in April-December 2012 at 100 million tonne, to rise to 185 million tonne 
•  Non-tax benefits for MSMEs up to 3 years after they graduate to higher category 
•  Budget Impact: To encourage PPP projects along with Coal India. Coal India up nearly 3% 
•  To encourage PPP projects along with Coal India 
• Shale gas projects to be encouraged 
• Natural Gas Pricing Policy to be reviewed Natural Gas and Shale Gas pricing policy to benefit