You just got married or engaged and are looking forward to the new beginning of life with your loved one. Surely love is very important for your future ahead but money also matters. Starting a new family has many financial challenges especially in these days of uncertainties.
Union Budget 2013 was announced on Thursday. In his one hour and forty-five minute long speech, the finance minister announced a lot of things. But how does the Budget really affect you? We have tried to bring you ready to use information while you plan your new life and your personal budget.
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There were no changes in the Income Tax slabs this year. Nevertheless, tax relief in the form of Rs. 2000 tax credit has been given to individuals with income between Rs. 2 lakh to 5 lakh. However, if you belong to 42,800 people who have an income of more than Rs. 1 crore, you will have to pay a surcharge of 10%.
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There is some good news for the people who are looking for their first home. An additional Rs. 1 lakh will be deductible on the interest part of your home loan for your first house but only if you buy it during the 2013-14 financial year and the loan is less than Rs. 25 lakhs. Currently the tax deduction limit is Rs. 1.5 lakhs. This will help you save about Rs. 30,000.
If you and your loved one love eating out in fancy restaurants, the budget plays villain for you. You will have to shell out more for such romantic dates as service tax will be levied on all air-conditioned restaurants. It looks like spending quality time together at home is a better idea.
There is some good news for gold buyers in the Budget. The finance minister defied industry expectations and held the gold import duty unchanged. The Budget also raised the maximum value of jewellery that may be brought home by Indian women who have lived abroad for more than a year, or who are changing residence to Rs. 1 lakh. It was Rs. 20,000 earlier.
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Mobile phones will also be costlier. Handsets with a price tag of over Rs. 2,000 will attract 6 per cent excise duty. This will be a good time to give up smoking; cigarettes will be costlier as the excise duty has been hiked by 18 per cent. Also, using marbles for home will get costly. On the other hand, leather products and carpets will be cheaper.
Sports utility vehicles (SUVs) will be costlier. The finance minister has proposed a hike in the duty paid by the manufacturers of the vehicles to 30 per cent from 27 per cent. Worse, the definition of SUVs will also include some Sedans. He has also proposed an increase in the import tax on luxury vehicles to 100 per cent from 75 per cent, and on motorcycles with an engine capacity above 800cc to 75 per cent from 60 per cent.
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This budget focuses a lot on women. Mr Chidambaram has proposed to set up the country's first women's bank as a public sector bank. The bank will predominantly employ women and will lend mostly to women and women-run businesses. Apart from this, a Rs. 1000 crore ‘Nirbhaya’ fund will be set up for the dignity and safety of women.
