Indian Union Budget 2007-2008

Posted by admin

February 29, 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