Indian Union Budget 2007-2008

Some highlights of the Indian Union Budget 2007-2008:

• Personal income tax exemption hiked to Rs 1.5 lakh
• Senior citizens threshold tax limit increased from Rs 1,95,000 to Rs 2,25,000
• Tax exemption for women increased to Rs 1.8 lakh
• New tax slabs: 10 per cent for 1,50,000 to 3,00,000, 20 per cent for 3,00,000 to 5,00,000 and 30 per cent above 5,00,000
• Excise on packaged software to be lower from 8% to 12%
• No excise duty on refrigerating equipments
• Anti-Aids drug exempted from excise duty
• Small cars to become cheaper
• Reduced excise duty on two, three wheelers
• Excise duty on hybrid cars cut from 24 pct to 14 pct
• Excise on small cars cut to 12 pct from 16 pct
• Rs 50 cr for tiger conservation
• Sixth Pay Commission report by March 2008
• Defense allocation up by 10% from Rs 96,000 cr to Rs 1,56,000 cr
• 22 Sainik schools get Rs 44 crore
• Rs 624 cr for Commonwealth Games
• PAN sole identification in securities market
• Debt waiver scheme and relief to small and marginal farmers
• Duty reduced on life saving drugs
• Rs 750 crore for upgradation of 300 ITIs in 25 districts.
• No change in peak customs duty
• Central sales tax cut from 3% to 2%
• Govt withdraws banking transaction tax
• Revenue implication of Indirect taxation to be 5900 cr
• Direct taxation changes to be revenue neutral
• Levy on STT only on option premiums

• Commodities transaction tax introduced like STT
• Short term capital gains to be taxed at 15%
• No change in surcharge of corporate tax
• Money changers and people running gains of chance and tour operators to be brought under service tax net
• Revenue Deficit is Rs 55,184 cr at 1% of GDP and fiscal deficit is Rs 1,33,287 cr at 3.1% of GDP
• Estimated planned expenditure at Rs 2,43,086 cr and non-panned expenditure Rs 57,409 cr
• Central Plans Scheme monitoring system under Plan Panel to be unveiled
• Non-agri peak rates for customs raises to 10% from 2% in 2004
• Tax to GDP ratio at 9.2% in 2004 up by 12.5% in 2007-08
• Custom duty on steel scrapped
• Set-top boxes to become cheaper