Union Budget for 2007-08: Highlights

New Delhi, Feb 28: Highlights of Union Budget 2007-08 presented by Finance Minister P Chidambaram.

12:50 PM

• Cash withdrawal limit for bank transaction tax hiked to Rs 50,000
• SVC tax for telecom industry
• Finance bill 2007-08 introduced in lok sabha
• 1396 industrial training institutes to be developed under private public mode at a cost of Rs 750 cr.
  

12:45 PM

• Tax benefit on R&D extended by 5 yrs
• MAT extended to Infotech Companies
• Surcharge on Corporate Income Tax removed for Companies earning less than Rs 1 cr
• ESOPs brought under FBT ambit
• Capital gains tax imposed on works of Art
• Dividend distribution tax raised to 15 pc
• Duty on cement reduced to Rs 350 per tonne from rs 450 for those sold below Rs 190 a bag.
• Amalgamation benefit extended to cooperative banks
• State local bodies allowed to raise tax free bonds
• Tax holiday for 2,3,4 star hotels in NCR cities
• Tax benefits in J&K extended by 5 years
• Benign tax assessment scheme for diamond merchants.
• Venture capital funds investing in biotechnology, nanotechnology, it, dairy and poultry given tax exemptions.
• Certain categories of venture capital funds investing in hotels and convention centres given tax exemptions.

12:35 PM

• No change in Income Tax rates.
• Income Tax exemption limit to be raised to Rs 10,000
• Rs. 1.95 lakh exemption for Senior Citizens
• No change in corporate tax rates
  

12:30 PM

• 5 pc excise hike on cigarettes. Pan Masala and Bidis to be expensive
• No change in CENVAT and service tax
• Ad valorem duty on petrol, diesel down to 6 pc
• No excise duty on ready-made food mixes
• Exemption limit for small service providers upped
• Lower duty on edible oil
• Service tax net widened
• Umbrella, footwear, plywood and water purification devices to be cheaper
• Customs duty on DMT, PTA down to 7.5 pc
• Duty on pet food for cats and dogs reduced from 30 to 20 pc.
• Bio-diesel fully exempted from excise duty.
• Excise duty on biscuits and dosa mixtures reduced
• Ceiling for excise exemption for ssis raised from Rs 1 cr to 1.5 cr.

• FDI inflow at .5 bn
• Central sales tax cut by 1 pc
• Rs 150 cr for Ministry of Youth Affairs
• Tax regime to be stable
• Import duty of 3 pc on pvt aircraft
• Govt expert panel to study impact of climate change
• Higher turnovers to benefit hotels and airport industry
• Peak customs duty cut from 12.5 pc to 10 pc
• Import duty on medical equipment down
• Customs duty on PFY down
• Gst to be introduced from 2010.
• FRBM targets achieved
• Customs duty on manmade fibre reduced from 10 pc to 7.5 pc
• Customs duty on drip irrigation equipment and food processing machinery cut to 5 pc from 7.5 pc

12:10 PM

• Defence allocation up to 96000 cr
• E-governance allocation increased
• CST rates to be reduced from 4 pc to 3 pc
• Rs 350 cr for Delhi govt for Commonwealth Games
• Increased allocation for textile parks
• India Intl Devp Corporation Agency for devp corp between Centre and various ministries
• Mumbai to be made world class financial hub
• 100 cr to recognise excellance in agri sector
• Rs 1396 industrial training institutes to be developed under private public mode at a cost of Rs 750 cr.
• Rs 500 cr promised for infrastructure for commonwealth games
• Nehru memorial museum to get rs 20 cr for being centre of excellence
• Rs 30 cr for core institutions promoting satyagraha

11: 55 AM

• LIC's aam aadmi rural emplyment project for landless farmers
• Govt to acquire RBI stake in SBI
• Allocation for National Highways increased
• Reverse mortgage scheme for senior citizens
• Outstanding credit to SME sector
• Banks to leand more to SME
• Coir industry to be modernised and upgraded. Allocations to Kerala, Karnataka, TN and Orissa for Coir industry upgrading
• 2 more ultra power projects to be approved by April
• DRI scheme loan incresed for Housing
• Golden Quadrilateral Scheme to be completed by 2009
• Road cum rail project over Brahmaputra
  

11: 50 AM

• Plan expenditure to rise significantly
• Health, Pharma and infrastructure sectors to get a boost
• 2 lakhs teachers to be appointed
• Rural landless farmers to get death/disability insurance

11: 45 AM

• Housing sector to get a boost
• Increased edu allocation to help pvt educational institutions
• Revenues are buyount for third consecutive year
  

11: 40 AM

• 50 pc subsidy for small farmers
• Weather based crop insurance scheme
• Avg inflation is 5.2 to 5.4 pc

11: 35 AM

• Savings rate estimated at 32.4 pc
• Budget for fertilizers increased.
• Economy stronger than before
  

11: 30 AM

• No forward contracts in wheat and rice.
• New Industrial policy for NorthEast
• Rs 12,000 cr allocation for NREGS
• Economy growth at 9.2 pc in Fy 07
  

11: 20 AM

• National means cum merits scholarship introduced to reduce dropout rate.
• 12,962 km of rural roads completed
• Govt concerned about inflation
• AIDS programme allocation hiked.
• Mgf growth rate up.
• Growth rate target of 10 pc achievable
• Avg growth rate is 8.6 pc
• Polio eradication strategy to be revised
• NRHM to get Rs 9907 crore
  

11: 15 AM

• Allocation for education to be hiked by 34.2 per cent to 32,352 cr.
• 31.6 pc increase in allocation for Bharat Nirman Yojana
• Additional irrigation potential of 34 lakh hectares to be created.
  

11:10 AM

• GBS to be raised to Rs 2,05,100 cr in 2007-08.
• Committee headed by Abhijit Sen to go into forward trading.
• Govt will not hesitate to take measures to curb inflation: Chidambaram
• Foreign exchange reserves stand at us dollars 180 billion.
• Bank credit grew 29.6 per cent till feb this fiscal.
  

11:05 AM

• Allocations increased for health care. Focus mostly on mother and child health.

11:02 AM

• Finance Minister allocates more for Sarva Shiksha Abhyaan and Mid-day meals.

11:00 AM

• Agri growth rate in tenth plan is 2.3 pc
• Avg agri growth rate below desired level
• Budget oriented towards inclusive growth

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