CAduniya.com : CA India Blog

What will be cheaper

* Pharma goods excise duty cut to 8%
* Anti-Aids drug gets excise duty exemption
* Custom duty for phosphoric acid custom duty reduced to 5%
* Custom duty on some bulk drugs cut from 10% to 5%
* Custom duty on steel scrapped
* Custom duty on vitamin pre-mixes to lower from 30% to 20%
* Excise duty reduced from 16 to 8 per cent on water purification items.

What will cost more* Excise on packaged software to go up from 8% to 12%
* No excise duty on refrigerating equipments
* Duty on non filter cigarettes to be raised

The government on Friday proposed to increase service tax revenues by bringing in services companies like
1) stock and commodity exchanges,
2) asset management firms offering unit-linked insurance plan,
3) clearing houses
4) and customised software makers under the levy.

• 5 year tax holiday to 2, 3 & 4 star hotels in UNESCO declared heritage site areas
• 5 year tax holiday for hospitals especially in tier 2 and tier 3 cities

Why Silent for STPI, Sofware Export units?

The STPI scheme which is set to expire in 2009, provides a 10-year income tax exemption for units situated in software technology parks.

“We have sought a blanket continuation,’ said Lakshmi Narayanan, chairman of National Association of Software and Service Companies.

With STPI scheme coming to an end in March 2009, investors could avoid India as an offshore destination, opting instead for places like China, Sri Lanka and Philippines, BPIAI (Business Process Industry Association of India (BPIAI). ) president Samir Chopra said. 

• Budget: Excise on small cars cut to 12 pct from 16 per cent
• Budget: Sixth Pay Commission report by March 2008
• Budget: Defence allocation up by 10% from Rs 96,000 cr to Rs 1,56,000 cr 
• Budget: PAN sole identification in securities market

*Banking transaction tax to be removed
*Reduce central sales tax to 2%
*Increase in short term capital gains tax to 15%
*5-yr tax holiday for setting up hospitals in tier-II, tier III regions
*Excise duty of Rs 1.35/litre on unbranded petrol
*Excise duty of Rs 4.6/litre on unbranded diesel
*Commodities Transactions Tax to be introduced
*Securities Transaction Tax to be treated like deductible expenditure
*5-yr tax holiday to 2,3,4-star hotels in UNESCO’s heritage sites
*NO FBT on creche, employee sports, guest houses facilities
*No change in corporate income tax rate
*No change in corporate surcharge tax
*Duty on two wheelers reduced from 16 to 12 pc
*Tax slab for Rs 3-5 lakh is 25 pc
*Senior citizens’ exemption hiked from Rs 1,95,000 to 2,25,000
*Women exemption threshold hiked from Rs 1,45,000 to 1,80,000
*Tax exemption hiked from Rs 1,10,000 to Rs 1,50,000
*Duty on non filter cigarettes to be raised
*Excise duty slashed to 8% on water purification items
*Duty withdrawn on naptha for production of polymers
*Refigeration components to become cheaper
*Reduce excise duties on anti-AIDS drugs
*Tax-GDP ratio up at 12.5%
*Excise on paper and paper products reduced
*Excise duties on buses, chassis slashed
*Excise on small cars to 14%
*Excise on pharma goods slashed to 14%
*General CENVAT rate on all goods from 16% to 14%
*Customs duty on few bulk drugs cut to 5%
*Customs duties on crude sulphur reduced to 2%
*Exempt on duties on coral
*Duties on convergence products slashed to 5%
*Fully exempt duties on Set top boxes
*Reduce duties on steel melting scrap, aluminum scrap
*No change in peak rate of customs duties
*Revenue Deficit will be 1.4 % agt Budget Estimate of 1.5%
*Planning Commission to evaluate major schemes
*Sixth central pay commission to submit report by March 31, 2008
*Grant of Rs 50 cr to Natl Tiger Conservation Authority
*Rs 75 cr to ICCR for cultural development
*Defence allocation hiked by 10% to Rs 1,05,600 cr
*Rs 32,676 crore as subsidy to PDS
*Smart-card based PDS system in Haryana, Chandigarh
*Allocation of Rs 44 cr to 22 Sainik schools each
*Rs 75 cr to Agri Ministry for soil testing labs in 250 districts
*Rs 15,000 cr for non-profit body for skilled dev programme
*Launch a world-class skilled development programme
*PAN requirement for all securities transactions
*To start a forex derivative market
*More transparency in the derivative market
*Risk Capital Fund to be set up in SIDBI
*National Highway Dev programme gets Rs 12,966 cr
*Accelerated power development programmes to get Rs 8,000 cr
*Ultra mega power project at Tilana shortly
*Rs 12,956 Cr for NHDP
*Banks to be encouraged to embrace total financial inclusion
*Foreign invt up to $8 bn expected for oil block exploration
*Coal regulator to be set up
*17 lakh families of weavers under Health Insurance
*State data centres scheme approved and get Rs 275 cr
*1 lakh broadband-enabled common service centres in villages
*Enhance allocation of NHDP programme
*Rs 800 cr for power reforms
*Manufacturing growth rate to be taken to double digit
*RIDF corpus to be hiked to Rs 14,000 cr
*Total estimate of loans being waived is Rs 50,000 cr
*Implementation of debt waiver scheme to end by June 30
*Waiver amounts to 4% of total bank loans
*Rescheduled farm loans eligible for waiver
*Din in House over PC’s relief plans to farmers
*Marginal, small farmers to get full waiver on all loans
*500 soil testing labs to be set up in the country
*Scheme of debt waiver and debt relief for farmers
*Allocation for NRHM increased to Rs 12,050 cr
*National Horticulture Mission gets Rs 1,100 cr
*Weather-based crop insurance scheme to get Rs 50 cr
*Rs 20,000 cr for irrigation projects under AIPB
*Special grant of Rs 20 cr to Tea Research Association
*Rs 500 cr to be allocated for micro irrigation schemes
*More funds for cardamom, coffee growing
*Rashtriya Krishi Vikas Yojana to get Rs 2,80,000 cr
*53 minor irrigation programmes to be implemented
*Target of Rs 2.80 lakh cr for agri-credit in 2008-09
*Ministry of Woman and Child Dev gets Rs 7,200 cr
*24% increase in allocation for child development
*Rs 500 cr for development of border areas
*Rs 1,042 cr for anti-Polio drive
*Jawaharlal Nehru Urban Renewal Mission to get Rs 6,865cr
*Growth of agri-credit impressive
*Allocation for ICDS increased to Rs 6,300 cr
*Minority Affairs Ministry fund doubled to Rs 1,000 cr
*288 PSU bank branches in minority districts
*Rs 540 cr for development plan for minority districts
*Rs 500 cr for corpus fund to subsidise all women
*LIC to cover all women Self-help Groups linked to banks
*Rs 200 crore for potable water in schools
*Rs 12,050 cr for strengthening rural health services
*Sanitation programmes to get Rs 1200 cr
*More minority recruitments in central para-military forces
*ICDS allocation hiked to Rs 6,300 cr
*Rs 300 cr for desalination plant near Chennai
*Rs 75 cr for Rajiv Gandhi Natl Fellowship Prog
*Natl Handicap Development Corp to get Rs 9 cr
*Natl Minorities Development Corp to get Rs 75 cr
*Allocation for NE schemes up from 14,365 cr to 16,400 cr
*Rajiv Gandhi Drinking Water mission allocation hiked
*NREG scheme to be rolled out in 596 districts
*National Rural Health Mission allocation hiked by 15%
*Remuneration of Anganwadi helpers hiked to Rs 750
*Remuneration of Anganwadi workers hiked to Rs 1,500
*3 IIScs in Bhopal and Trivandrum
*National Programme for the Elderly to be set up
*Rs 30,000 health cover for every worker in unorganised sector
*2 schools of Planning and Architecture
*Secondary education Scheme Rs 4,554 crore
*Rs 100 cr to Ministry of Science and tech for Natl Knowledge Network
*All knowledge bodies to be connected via broadband
*Rs 85 crore to building a knowledge society
*Scholarships for science and research
*Education and Health allocation up 20%
*Service Sector to grow at 10.7%
*3 IITs in AP, Bihar and Rajasthan
*16 central universities to be set up
*Mid-day meal scheme extended to upper primary classes
*Budgetary allocation for mid-day meal scheme Rs 8,000
*Rs 10 cr for Nehru Kendras in 110 districts

Chidambaram announced major – and arguably populist - changes in the Income Tax slab. He said the threshold of exemption for all Income Tax assesses will be raised from Rs 1,10,000 to Rs 1,50,000, eliciting applause from the Parliamentarians. Personal income tax exemption slab for women will be at Rs 1.8 lakh

* Every income tax assessees to get relief of minimum of Rs 4,000.
* No change in rate of surcharge.
* New tax slabs will be: 10 per cent for 150,000 to 300,000, 20 per cent for 300,000 to * 500,000 and 30 per cent above 500,000.
* No change in corporate income tax.

Union Finance Minister P Chidambaram presented his fifth Budget in Parliament on Friday. Following are the highlights:

Highlights:

• NREGA scheme to be rolled out in all the 596 rural districts in the country in 2008-09.
• Jawaharlal Nehru Urban Renewal Mission to get Rs 6,865 crore this year against Rs 5,482 crore past year.
• Allocation for Rajiv Gandhi Drinking Water Mission to be increased to Rs 7,300 crore. Rs 200 crore for potable water in schools.
• Rs 300 crore to be set aside for desalination plant in Chennai for drinking water.
• Rs 500 crore for identifying urgent needs of development programmes of border areas like Arunachal Pradesh.
• SC, ST and minority students to continue to get special attention.
• Allocation for several schemes in North East raised from Rs 14,365 crore to Rs 16,400 crore.
• Rs 75 crore sanctioned for Rajiv Gandhi National Fellowship Programme for SC/ST students pursuing M.Phil.
• Rs 230 crore will be extended as additional equity to developmental organisations looking after the welfare of SC,
• ST, socially and economically backward classes and minorities.
• Allocation for Minority Affairs Ministry to be doubled from Rs 500 crore to Rs 1,000 crore.
• Rs 540 crore for multi-sectoral development plan for minority concentration districts.
• 288 public sector bank branches to be opened in districts having minority community concentration.
• Sarva Shiksha Abhiyan will be provided Rs 13,100 crore, Mid Day Meal scheme Rs 8,000 crore, Secondary education Scheme Rs 4,554 crore.
• 410 additional Kasturba Gandhi Vidyalaya to be set up in backward blocks.
• Navodaya Vidyalayas to be opened in 20 districts with special focus on regions having SC/ST concentration.
• Allocation of Rs 130 crore for this purpose. Rs.750 crore more to be given for merit scholarship to students up to 10th and 12th class.
• Mid day Meal scheme extended to upper primary level in 3479 schools. 16 central universities to be opened in 2008-09.
• Three IITs to be set up in Andhra Pradesh, Bihar and Rajasthan.
• Schools of architecture and planning in Bhopal and Vijaywada. More institutes of higher education to be opened.
• Rs 100 crore to be given to Information Technology Ministry to set up national knowledge centres.
• Allocation for NRHM increased to Rs 12,050 crore
• Rs 992 crore for national AIDS programme.
• A national programme for the elderly to be started at a cost of Rs. 400 crore.
• Rashtra Swasthya Beema Yojana to start from April one in Delhi and Haryana. Rs 30,000 for each family belonging to unorganised sector.
• Allocation for ICDS increased to Rs 6300 crore.
• Rs 85 crore sanctioned for scholarships to students pursuing science education.
• Indian Institutes of Science Education and Research to be set up at Bhopal and Thiruvananthapuram.
• Agriculture credit doubled in the first two years of the government to reach Rs.2.40 lakh crore by March 2008.
• Eleventh Plan started on a robust growth.
• Gross budgetary support to be raised to Rs 2,43,386 crore, an increase of more than Rs 38,000 crore from the current level.
• Allocation for Bharat Nirman to be raised to Rs 31,280 crore.
• Twenty per cent hike in education budget this year from Rs 28,674 crore to Rs 34,400 crore.
• GDP growth slows down to 8.4 per cent during quarter ended December 31, 2007 as compared to 9.1 per cent a year ago.
• Economy grew over eight per cent over 12 successive quarters since 2005, says Finance Minister P Chidambaram.
• Growth rate of agricultre extimated at 2.6 per cent during the current year.
• Services and manufacturing sectors expected to grow by 10.7 per cent and 9.4 per cent, says Chidambaram.
• Keeping inflation under check is one of the cornerstones of the Government’s policy.
• Rice production estimiated at 94.08 million tonnes, maize 16.78 mt, soyabean 9.45 mt and cotton 23.38 million bales.

Source & Courtesy: Rediff

February 29, 2008 11:45 IST

Changes in I-T slab.