KNOW TAX

For Men
Upto Rs. 1,50,000/-	Nil
Rs. 1,50,001/- to Rs. 3,00,000/-	10 per cent
Rs. 3,00,001/- to Rs. 5,00,000	20 per cent
Above Rs. 5,00,000/-	30 per cent

For Women
Upto Rs. 1,80,000/-	Nil
Rs. 1,80,001/- to Rs. 3,00,000/-	10 per cent
Rs. 3,00,001/- to Rs. 5,00,000	20 per cent
Above Rs. 5,00,000/-	30 per cent

For resident individual of 65 years or above
Upto Rs. 2,25,000/-	Nil
Rs. 2,25,001/- to Rs. 3,00,000/-	10 per cent
Rs. 3,00,001/- to Rs. 5,00,000	20 per cent
Above Rs. 5,00,000/-	30 per cent

Corporate Tax/Corporate Surcharge Tax

• Unchanged

Service Tax

• No change in service tax rate

Direct Tax

• Short-term capital gains tax hiked to 15%

• Securities Transactions Tax unchanged

• Banking Transaction Tax withdrawn

• Central Sales Tax up from 2% to 5%

Misc.: Bank cash transaction tax to be exempted
 

The release of Union Budget 2008-09 by Finance Minister P Chidambaram on 29 Feb'08 might intend to bring about some paradigm changes. Lets have a quick look at the gainers:

• Farmers have been granted a package of Rs 60,000-cr

• Rs 44 crore for 22 Sainik schools

• 300 more ITIs to be elevated with an investment of Rs 750 cr

• Setting up of 3 new IITs, 16 central universities

• Power sector would be given national fund for transmission, distribution reforms

• Hike of Rs 12,966 cr from Rs 10,866 cr in NHDP allocation

• Govt would now cost Rs 50,000 cr on farm loan waiving

• Tea would get Rs 400 mn special support fund

• Agri loans would be reconstructed in 2004-06 under special packages to be waived

• Tea Research association would be allocated Rs 20 cr

• Micro irrigation scheme allocated Rs 500 cr

• Agriculture share in total investment would be raised to 16% from 10.2%

• Grant for ministry of minorities would be raised to Rs 1,000 cr

• Planned schemes for woman to get Rs 11,460 cr this fiscal

• Child related schemes would be granted Rs 33,434 cr

• 288 branches of public sector banks would be set up in 2008

Expensive	Cheaper
Non filter cigarettes Unbranded petrol and diesel	Anti-AIDS drugs Two wheelers Small cars Bulk drugs Crude sulphur Buses, Chassis Water Puriifier Refrigeration Components Paper and its products Naptha Pharma goods

 

• BUDGET SPEECH ENDS

• Corporate surcharge tax: unchanged

• Indirect tax proposals to incur a loss of Rs 5,000 cr

• Direct tax proposals would be revenue neutral

• Dividend of subsidiary company will be released from DDT

• Banking transaction tax to be exempted

• Central sales tax: Reduced to 2%

• 15% rise in short term capital gains tax

• 5-yr tax holiday for building hospitals in tier-II, tier III regions

• Short-term capital gains rises to 15 pc

• Excise duty of Rs 1.35/litre applied on unbranded petrol

• Excise duty of Rs 4.6/litre applicable on unbranded diesel

• Introduction of Commodities Transactions Tax

• Securities Transaction Tax would be considered like deductible expenditure

• Star hotels: 2,3,4 star hotels to get 5-yr tax holiday in UNESCO's heritage sites

• FBT exempted on creche, employee sports, guest houses facilities

• Duty on two wheelers slashed from 16 to 12 pc

• Tax slab for Rs 3-5 lakh would be 20 pc

• TAX: exemption raised from Rs 1,10,000 to Rs 1,50,000

• TAX: Women exemption threshold streched from Rs 1,45,000 to 1,80,000

• TAX: Senior citizens' exemption raised from Rs 1,95,000 to 2,25,000

• TAX: Coporate income tax unchanged

• Hike of duty on non filter cigarettes

• Excise duty reduced to 8% on water purification items

• Duty taken off on naptha for production of polymers

• Refigeration components to get less expensive

• Reduction of excise duties on anti-AIDS drugs

• Tax-GDP ratio higher at 12.5%

• Step down of excise on paper and its products

• Reduction of excise duties on buses, chassis

• Excise on small cars stepped to 14%

• Excise on pharma goods reduced to 14%

• General CENVAT rate: dipped from 16% to 14%

• 5% cut of customs duty on some bulk drugs

• Crude sulphur: duties stepped down to 5%

• Relieve of duties on coral

• Fiscal Deficit & Revenue Deficit: pegged at 3.1% & 1.4%.

• Duties on convergence products dipped to 5%

• Set top boxes: 100% exemption

• COMMONWEALTH GAMES: allocated Rs 624 cr.

• Steel melting & aluminum scrap: duties reduced

• Peak rate of customs duties unchanged

• Sixth central pay commission would submit report by March

• Revenue Deficit would be 1.4 % agt Budget Estimate of 1.5%

• Planning Commission to assess major schemes

• PROTECT TIGER: Rs 50 cr to Natl Tiger Conservation Authority to get Rs 50 cr

• Rs 75 cr for ICCR for cultural development

• Defence allocation raised by 10% to Rs 1,05,600 cr

• PDS to get Rs 32,676 as subsidy

• Smart-card based PDS system to come up in Haryana, Chandigarh

• PDS to be toned up

• Grant of Rs 44 cr to 22 Sainik schools each

• Rs 75 cr to given to Agri Ministry to set up soil testing labs in 250 districts

• Rs 15,000 cr to be given for a non-profit body for dev programme

• Set up a world-class skilled development programme

• PAN requirement extended to all securities transactions

• Set up bond, derivative market

• More clarity in Derivative market

• Risk Capital Fund to be established in SIDBI

• Allocation of Rs 12,966 cr for National Highway Dev programme

• Rs 8,000 cr for accelerated power development programmes

• Ultra mega power project to come up at Tilana shortly

• NHDP to get Rs 12,956 Cr

• Banks would be bucked up to embrace total financial inclusion

• Foreign invt: Oil block exploration anticipated to get up to $8 bn

• Setting up of Coal regulator

• Health Insurance for 17 lakh families of weavers

• Approval of State data centres scheme and gets Rs 275 cr

• 1 lakh broadband-enabled common service centres to be set up in villages

• Better allocation of NHDP programme

• Power distribution to get Rs 800 cr

• Public Sector Bank: Around 288 branches to be opened in districts with minority community concentration.

• Manufacturing rate of growth planned to be doubled

• RIDF corpus to be raised to Rs 14,000 cr

• Education: 20% hike from Rs 28,674 cr to Rs 34,400 cr

• Total amount of loans being waived is Rs 50,000 cr

• Debt waiver scheme to end up by June 30

• Minority Affairs Ministers alloted Rs 1000 cr.

• Total amount of loans being waived is Rs 50,000 cr

• Debt waiver scheme to end up by June 30

• Interest subvention would prove negative for banks

• Waiver forms up to 4% of total bank loans

• Sensex dipped to 210 points

• 500 soil testing labs would be established in the country

• Marginal,small farmers gets 100% waiver on all loans. Benefit to 4 crore farmers

• Farmers would provided with scheme of debt waiver and debt relief

• Allocation for NRHM hiked to Rs 12,050 cr

• National Horticulture Mission would be allocated Rs 1,100 cr

• Rs 50 cr for Weather based crop insurance scheme

• Tea Research Association would be given a special grant of Rs 20 cr

• Rashtriya Krishi Vikas Yojana would be allocated Rs 2,80,000 cr.

• 53 minor irrigation programmes would come into action

• Coffee, cardamom growing gets more funds

 

• Child specific schemes would be given Rs 34,334 crores

• Rs 2.80 lakh cr has been set for agri-credit in 2008-09

• Ministry of Woman and Child Development to be alloted Rs 7,200 cr

• 24% hike in allocation for child development

• Border area development gets Rs 500 cr

• Anti-Polio drive gets Rs 1,042 cr

• Hospital sector likely to gain Interest subvention has been increased in the year 2007-08

• Jawaharlal Nehru Urban Renewal Mission would be alloted Rs 6,865cr

• Development of agri-credit has been impressive

• Minority Affairs Ministry fund raised to Rs 1,000 cr

• Setting up of 288 PSU bank branches in minority districts

• Rs 540 cr to be given for the development plan for minority districts

• LIC would entail all women SEGs

• Rs 200 crore to be given for potable water in schools

• Rural health services would be alloted Rs 12,050 cr for its development

• Publishing market would gain from education boost

• Sanitation programmes would be alloted Rs 1200 cr

• More number of minority placements in central para-military forces

• Higher Education: more institutions in the 11th plan.

• Anganwadi helpers & workers remuneration hiked to Rs 750 & Rs 1,500

• National Programme for elderly citizens at Rs. 400 crore

• Rajiv Gnadhi Natl Fellowship Programme would be alloted rs 75 cr

• Rs 9 cr for Nat Handicap Development Corp

• Natl Minorities Development Corp would be alloted Rs 75 cr

• Rs. 500 crore for Arunachal and north eastern states

• Education spend to be raised by 20% to Rs 34,400 cr

• NE region would be granted Rs 1, 350 cr for development

• Rajiv Gandhi Drinking Water mission allotment would be raised

• NREG scheme to be implemented in 596 districts

• National Rural Health Mission allocation raised by 15%

• Rs 30,000 health cover allotment for every worker in unorganised sector

• Increase of Health allocation to 15%

• supply safe drinking water as per Rajiv Gandhi's plan

• 3 IIScs would be set up in Bhopal and Trivandrum

• National Programme for the Elderly to be set up

• Secondary education Scheme: Rs 4,554 crore

• 2 schools would be set up for planning and architecture

• Rs 4,554 crore Secondary education Scheme

• Rs 100 cr would be given to Ministry of Science and tech for Natl Knowledge Network

• All knowledge bodies would be connected through broadband

• Rs 85 crore for the setting up of a knowledge society

• Scholarships would be given for science and research

• Education and Health allocation up 20%

• Service Sector to rise at 10.7%

• Setting up of 3 IITs in AP, Bihar and Rajasthan

• 16 central universities would come up

• Mid-day meal scheme: for upper primary classes also. Budgetary allocation Rs 8,000

• Navodiya Vidyalayas to start up in 6,0-00 districts

• 6,000 model high schools to be established

• Agricultural growth rate planned at 2.6%

• reforms for Education, health remains a major concern 

• 2008-09 would be a year of integration

• He remains to be convicted to sustain 8% growth

• Effect of global mkts on local mkts is hazy

• Govt, RBI will to take a conjoint step to manage capital inflow

• Govt to monitor all foreign fund inflow

• Govt. to check foreign inflow to stabilise Indian mkts

• Rashtriya Krishi Vikas Yojna launched

• Food grains overall output is 219.32 mn tonnes

• We should remain wakeful for downside risk

• Crude oil has seen a step down

• Agriculture condition was disatisfactory

• Capital inflows proves to be point of consideration against monetary management

• Growth rate at 8.8%

• Service sector remains the propelling force for Budget

• Since Aug 2007 financial economies has seen a great ups and downs 2007-08 has been a challenging year

• Chaos in the parliament as Opposition interrupts speech

• Finance Minister P Chidambaram starts up to address Parliament

• This Union Budget 2008-09 would be UPA government's last Budget before elections next year.

• The next Union Budget will be a vote-on-account because of general elections.

• FM might not deliver a populist Budget as against the general speculations.

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• Complete waiver of loans owed by small and marginal farmers, landholding below 5 acres.

• Duties on life-saving medicines may be exempted.

• Excise duty may not change: 16 per cent

• Duties on consumer electronics may be slashed down to 12% from 16%.

• Individual Tax Payers: standard deduction limit may be raised 20 per cent to Rs120,000.

• Surcharge on corporate tax is expected to be abolished.

• 10-year tax exemption under the Software Technology Parks of India (STPI) scheme may be extended. It ends in March’09.

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