Summary of Budget 2007-2008

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Summary of Budget 2007-2008
* No change in STT
* Asset management service under service tax net
* SSI excise exemption increased to Rs.1.5crore
* 1% increase in secondary education cess
* Free samples & displays exempt from scope of FBT
* Capital gains tax imposed on investment in works of Arts
* Surcharge on Corporate income tax on companies below Rs 1 crore
removed
* Dividend distribution tax raised to 15% from 12.5%
* MAT- IT companies to pay 11.22% of adjusted book profits
* No change in corporate tax rates
* Exempt clinical trials for drugs from service tax
* Tax benefits on R&D extended for 5 years
* Extend service tax to design services
* Personal Tax exemption limit hiked to Rs.1,10,000 for individual
* Income tax rates unchanged
* Duty on sunflower oil to be reduced by 15%
* Dredgers exempt from import-duty
* Customs on man-made fibre reduced from 16% to 8%
* Customs reduced in medical equipment to 7.5%
* Textiles raw material import duty cut
* Peak customs duty reduced to 10%.
* Watch dials, umbrella parts duty cut to 5%
* Duty on pharma, biotech products cut
* Increase in excise duty for cement's MRP higher than Rs.190 per
bag to Rs.600 per tonne
* Total expenditure estimated at Rs 6,81,521 crore
* Water purification devices fully exempted from excise duty
* Custom duty on plastics reduced to 7.5%
* No change in service tax rate
* 100% subsidy for small farmers & 50% for other farmers
* A national level goods and services tax to be introduced from
next fiscal
* Proposed to reduce duty in Pet foods from 30% to 20%
* VAT revenues increased by 24.3% in the first nine months of
2006-07
* Reduce duty on seconds of steel from 20% to 10%
* Tax to GDP ratio at 11.2% in FY07
* Gross domestic capital formation up by 23.7%
* Rs 321 cr allocated for handloom sector
* CST will be reduced from 4% to 3% from April 1, 2007
* To create 1 lakh jobs for physically challenged people
* Mortgage guarantee companies to be set up
* Handlooms covered under TUFFS scheme
* 15,000 villages connected by telephones, 20,000 villages by year
end
* Regional rural banks asked to undertake branch expansion
* Golden quadrilateral project near completion
* Overseas investment to be allowed by individuals via Mutual
Funds
* Mutual Funds to launch infrastructure funds.
* Rs.33 cr to be allocated for manpower development in software
industry
* Allocation for textile parks up from Rs 189 cr to Rs 425 cr
* Credit rating must for SMEs
* A target of additional 50 lakh farmers to be brought under farm
credit.
* New Industrial Policy for the northeastern region to be in place
before March 31.
* Reverse mortgage scheme for senior citizens
* PAN card to be sole identification number for all participants
in the security market
* Rs 8,795 cr for women-oriented schemes
* Coffee, rubber to get similar fund benefits as tea industry
* Revenues are buoyant for the third year in succession
* GDP growth of 10% in 11th Plan
* Agriculture focus to benefit rural income & FMCG companies
* PDS system to be fully computerised
* Outlay for irrigation at Rs.11,000 cr
* Annual target of 15 lakh houses under Bharat Nirmal Programme to
be exceeded.
* Secondary education allowance to be increased from Rs.1, 837
crore to Rs.3,794 crore.
* Agriculture growth in 10th plan below expectation.
* Two lakh more teachers to be employed and five lakh more
classrooms to be constructed.
* Allocation on Healthcare to increase by 21.9%.
* Allocation for education to be enhanced by 34.2%.
* Additional irrigation potential of 24 lakh hectares to be
implemented.
* Aids control program allocation hiked to Rs.969 cr
* Excise duty exempted on life saving vaccine
* Allocation for sanitation increased from Rs.720 cr to Rs.954 cr
* Secondary education spending doubled to Rs.3,794 cr
* Drinking Scheme allocation hike to Rs.5,850 cr from Rs.4,650 cr
* More irrigation outlay
* Bank credit at 29.6 % YoY this fiscal so far
* Agri investment to go up by 2% of GDP
* Education allocation hiked by 32.4% to Rs.32,352 cr
* Higher outlays for roads
* Forex reserves stood at $180 bn.
* Savings rate estimated at 32.4%
* Average agriculture growth is 2.3%.
* Service sector growth maintained
* Growth target of 8% of 10th plan nearly achieved.
* Manufacturing growth rate has grown from 8.7% to 11.3%
* The average growth rate for 3 years is 8.6%
* GDP growth rate has improved to 9.27% for FY07
* Average inflation for FY07 estimated at 5.2% to 5.4%
* Average farm growth 2.3%, below expected target of 4%
* Rs. 4,000 cr more earmarked for RIDF in FY08
* Higher tech education spending
* Supply constraints in various commodities has resulted in
pressure on prices
* Supply constrains could jeopardize macro economic stability
* Per capita income for FY06 up by 7.6%
* Rs.4,000 cr allocated for rural roads
* Gross budgetary support of Rs.2.05 trillion vs Rs.1.31
trillion .
* No new forward contract to be launched on wheat and rice.
* Revive & replicate T&V program which led to green revolution in
1960s in agriculture
* Rs.12,000 cr allocated to rural infra development fund for FY08
* Tax planning to harness Rs.7,000 cr for FY08 expenses
* Farm credit growth doubled in two years
* 26 coal blocks, 4 lignite blocks allotted to Govt co. & end
users
* Creation of 1 lach jobs for physically challenged, with salary
limit of Rs.25,000 per month
* Total budgetary allocation for north-east states is Rs.14,365 cr
* SC/ST allocation hiked to Rs 3,271 cr
* Rs 750 cr for national scholarship scheme
* Increased provision of Rs.10,667 cr for NHDP
* 2 more Ultra Mega Power Projects to be awarded by Dec. 08
* Short term crop loans at Rs. 1,677 crores
* Rs 22,452-crore subsidy to fertiliser
* Rs 1,800 crore allocation for NABARD
* Backward Regions Grant Fund to be raised to Rs 5,800 cr.
* To allocate Rs 750 cr for setting up ITIs
* Mumbai to be converted into world-class financial city
* Part of forex reserves to be used for infrastructure projects
* Rs. 40,000 cr for government to acquire RBI stake in SBI
* 100% subsidy to small farmers, 50% subsidy for other farmers
* Duty cut on gems and jewellery from 5% to 3%
* Weather based insurance scheme launched
* TUFs scheme to be continued in the 11th Plan
* 330 districts under job guarantee scheme
* Tourism infrastructure to get an allocation of Rs.520 cr as
against Rs.423 cr last year.
* Duty cut in corals from 20% to 10%
* Duty cut on Petrol & Diesel from 8% to 6%
* Biodiesel fully exempted in excise duty
* Defense allocation up at Rs 96,000 cr
* Government to give equity support of Rs.16,354 cr to central
PSEs
* Revenue deficit is 1.5%, Fiscal deficit at 3.3%
* Cash withdrawal tax limit hiked to withdrawals over Rs.50,000
* Excise on footwear reduced
* 31.6% increase in allocation for Bharat Nirman Program
* Allocation for National Rural Health Mission stepped up from Rs
8,207 crore to Rs 9,947 crore.
* FDI in April-Jan at $12.5 bn
* Outstanding credit to SME increased from Rs.1,35,200 cr in
December 2005 to 1,73,460 cr by end December 2006
* Government to grant Rs.350 cr to Delhi government for common
wealth games
* NABARD bonds to get Rs. 5,000 cr tax exemption
* Rs 1,290 cr to be provided for elimination of polio.
* ESOPs brought under FBT
* Concessional duty of 5% to be extended for R&D in scientific &
industrial fields
* Reduce in excise duty on plywood from 16% to 8%
* Excise duty for cement upto MRP Rs.190 per bag decreased from Rs
400 per tonne to Rs.350 per tonne
* To levy export duty on iron ore concentrates of Rs2000 per tonne
* Export duty on cigarettes hiked by 5%
* Surcharge removed for SMEs, no change in corporate tax
* 5 year tax holiday for 2, 3 and 4 star hotels in NCR regions
till March 31st 2010
* Mediclaim deduction increased to Rs.15,000 u/s 80D and to Rs.
20,000 for senior citizens
* Zero excise duty on biscuits below Rs.50 per Kg.

Income-Tax threshhold limit for women increased to Rs.1,45,000 for
senior citizen to Rs. 1,95,000