Budget 2007,Budget 07-08,India Budget 2007-08,Union Budget 07-08,Budget Announcement 2007

UNION BUDGET 2007-08 UPDATE

Personal Tax

LTCG exemption to continue this year
Capital gains bond to continue
Income tax exemption hiked by Rs 10,000
- 1.1 lakh for men
- 1.45 lakh for Women
- 1.95 lakh for senior citizen
Exemption limit on medical insurance premium increased to Rs 15,000.
Exemption limit on medical insurance premium for senior citizens increased to Rs 20,000.

Corporate Tax

Exemptions cut for export-oriented enterprises such as software outsourcing firms, by asking them to pay mininum alternate tax (MAT) on income.
IT companies will now have to pay 11.22 per cent of their adjusted book profits as minimum adjustable tax (MAT). Along with 1% education cess, the total payable goes up to 11.33%
Dividend distribution tax raised to 15 percent
Employee stock options brought under fringe benefits tax

Service/Sales Tax

No change in service tax rate
Central Sales Tax : 1% cut

Stock Market

Short selling by institutions; settlement by delivery
MFs to be allowed to launch infrastructure funds
PAN mandatory for all security transactions
A 25 per cent dividend distribution tax for MFs and liquid MFs

Misc.: Bank cash transaction tax : limit raised to Rs 50, 000

Custom Rates 2007

Product	Up	Down	No Change
Non-agri Products (peak duty)		25%
New & 2nd hand cars			No Change
Natural rubber			No Change
Fish			No Change
Mixtures of Odoriferous goods for alcohol			No Change
Textile fabrics & garments (ad valorem)
Cooking Coal		Down
Agricultural Spinklers		Down
Lift irrigation Equipment		Down
Food Processing Equipment		Down
Pvt Aircrafts incl Helicopters	Up
Sunflower Oil		Down
Iron ores & concentrates	Up
Chromium ores & concentrates	Up
Corals		20%
Glycerol waters & Glycerol Iyes		10%
Dexrose Monohydrate		10%
Dog/Cat Food (retail sale)		10%
Boron ores		3%
Borax or Boric Acids		5%
Caprolactum			No Change
Mannitol & Sorbitol			No Change
Urea (to be used as manure)	5%
Titanium Dioxide (pigments & preparations)	10%
Glass frits		Down
Polymers & Copolymers		Down
Waste Parings & Scrap of Plastics		Down
Butyl Rubber		5%
Furskins (Raw, tanned & dressed)		8%
Polymer Filament yarns		2.5%
Aramid Yarns		Down
Polyester Staple Fibres & Tow		2.5%
Man-made Staple Fibres			No Change
Parts of Umbrella		7.5%
Diamonds (Cut & polished)		2%
Gemstones (synthetic)		7.5%
agri Sprinklers & drip irrigation systems		2.5%
Food processing Machinery (& parts)		2.5%
Presses ( for mfg fibre board)		Down

Excise Rates 2007

Product	Up	Down
Umbrella parts		Down
Footwear		Down
Beedi	Up
Biscuits		Down
Instant food mixes		Down
Bio Deisel		Down
Warer Purifiers		Down
Cement	Up
Cigarettes	Up
Mouth Freshners		Down

LTCG exemption to continue this year
ATF benefit extended to all small aircraft
Capital gains bond to continue
Cut and polished diamonds duty cut to 3%
Peak customs duty on non-agro prod cut to 10%
Tax as % of GDP at 11.4%
Estimates rev deficit at 1.5%; fiscal deficit at 3.3% of GDP
Total expenditure at rs.6.8 lakh cr
Revenue deficit 2%, fiscal deficit 3.7%
Revenue deficit to be 2%; fiscal deficit to be 3.7%
VAT revs a success; revs up 24% in '07
State debt consolidated, 20 states restructured debt
Rs150cr for min of youth for commonwealth games
Rs.1800cr for Pvt Cos which regularise the disabled
To set up an autonomous debt management office
Int free loan of upto Rs2.5cr for upgradation of ITIs
Rs.750cr set aside for loans for ITI upgradation
To allocate Rs.750cr for setting up ITIs.
e-governance expenditure hiked to rs.719cr.
e-governance allocation doubled to rs 700-plus cr.
Use part of forex reserves for infrastructure finance.
Savings rate at 32.4%: FM
GDP growth seen at 9.2% in 2006-07
Garnered additional revenues this fiscal: FM
Agri must top agenda of policy makers: FM
Farm sector avg growth 2.3% in 5 years
Have noticed sharp ups & downs in agriculture
New funds for replanting coffee, cashew, coconut: FM
Pvt Cos invited to submit plans for certified seeds
Target for farm credit in '08 at Rs2.25 lk cr vs Rs1.9 lk cr
Rs.153cr for high-yielding milch animals scheme
Govt concerned about farm productivity: FM
Rs 2,25,000 cr credit for farming
Farm credit in FY'07 at Rs.1.90 lk cr
Initial allocation for NREGS at Rs.12,000cr
NREGS to be expanded to 330 districts
NRHM allocation up from Rs 8207 cr to Rs 9947cr
Sanitation campaign up from Rs 720 cr to Rs 954cr
All distt to complete distt health action plans by Mar'07
Allocation for sanitation up at Rs.950cr from Rs.720cr
To lower dropout rate via Nat'l Scholarship Scheme
To hire 2 lk new teachers make 5 lk new classrooms
To hire 2 lk more teachers; 5 lk more classrooms
Allocation for school education up to Rs.23,142cr
Allocation to education hiked by 34.2% to Rs32352cr
2 lakh new teachers will be appointed next year
Education allocation up 34.2%;school education 35%
Education spend up 44.2% to Rs 32,352 cr
7.83 lakh rural houses built upto Dec 2006
Committee for forward trading in essential comm
24 lakh hectares under new irrigation projects: FM
Agriculture avg growth rate in 2002-07 is 2.3%
Confident we can moderate inflation trend: FM
Committee to study forward trade impact on prices
PM has written to all CMs to monitor hoarding
Global commodity prices put pressure on inflation
To present new proposals on agriculture
Monetary trends have put pressure on prices: FM
Govt committed to monetary stability & inclusive growth
Bank credit grew 29.6% till February
Per capita income grew 7.5% last year
Agri growth at 2.3%, lower than desired 4%
Average growth rate in UPA Govt tenure at 8.2%
GDP growth average 8.5%
Growth rate of GDP has improved to 9.2%: FM
Defence allocation up at Rs.96,000cr
Defence Budget hiked by Rs.96000cr
Short selling by institutions; settlement by delivery
MFs to be allowed to launch infrastructure funds
PAN mandatory for all security transactions
To set up mortgage guarantee Cos
To ask RRBs to launch branch expansion prog
Coir industry modernisation provision at Rs 22.5 cr
Banks to check rating for small Co loans
100-150 handloom clusters to be taken up in FY'08
Allocation to handloom sector hiked to Rs.321cr
Road-rail projs in Bihar, Assam will be nat'l projs
Allocation to NHDP hiked frm Rs 9945cr to Rs10667cr
Golden quad project almost complete
Hikes allocation to APDRPs to Rs800cr fm Rs 650 cr
APDRPs to cover districts with population > 50000
7 UMPPs under review; 2 to be approved by July
Central PSUs to invest Rs 1.6 lakh cr this year: FM
Gross domestic capital formation up 23%
Rural landless households covered under AABY
Govt to pay 50% premium, states to pay other half
Separate window for rural roads under RIDF to remain
Death & disability insurance for rural landless households
Social Security Scheme for unorganized workers
Fertiliser subsidy in FY'07 at Rs.22,450cr
Govt to start weather based crop insurance scheme: FM
India has find alternate method for fertiliser subsidy
Training & Visit system for farmers to be revived
Rs 22,452cr already spent on fertiliser subsidy: FM
World Bank loan to TN-Rs2182cr to restore water bodies
World Bank to assist Andhra water bodies restoration
Rs 100 cr for New Rainfed Area Dev Prog: FM
Income tax exemption hiked by Rs 10,000.
Five-Year tax holiday for 2,3 & 4 Star Hotels.
No excise duty on instant food mixes.
15 specified machinery import duty to be reduced from 7.5 % to 5%.
ESOPS to attract FBT.
MAT extended to IT companies.
Duty on sunflower oil down by 15%.
Excise duty for plywood down from 16 % to 8%.
Water purification devices fully exempted from excise.
Private importers of aircraft : 3% import duty to be levied including helicopters.
Tax exemption for senior citizens : Rs 1.95 lakh.
Income tax exemption : for women Rs 1.45 lakh.
Education cess : service tax now at 3%.
No change in corporate income tax.
Bank cash transaction tax : limit raised to Rs 50, 000.
Service tax exemption on tech buz incubators.
DoT to review Telecom tax structure.
Effective corporate tax rate at 19.5 per cent.
Tax exemption limit : raised to Rs 1.1 lakh.
Cement excise: Rs.350/tn on Rs.190/bag .
Excise cut on cement (till Rs 190/bag) to 350/mt.
Duty on mouth freshners is to be cut by 45%.
Excise Duty : Bio-Diesel fully exmpted.
Import duty : cut on medical equipments to 7.5 per cent.
No change in service tax rate.
e-filing of returns has been a success.
Excise duty : raised to 5% on cigarettes, tobacco.
20,000 hotels more for Commonwealth Games.
Cooking coal : exempted from customs duty
Losses on CST,VAT Rs 5495crore to be compensated.
Reduction in customs duty on Polyester & Fibre by 7.5%.
Centre to give Rs 1.42 lakh crore to states in '08 taxes.
National level goods & services tax to be introduced from Apr 1
Central Sales Tax : 1% cut
Physically-challenged : 1 lakh jobs for them.
Gross tax revenue : increased by 19.9%, 20% and 27.8% in first 3 years of UPA Govt.
UPA Govt promises tax rate to be stable.
SMEs : Government to encourage banks to lend SMEs.
Inflation between 5.2% and 5.4% in 2007.
Micro irrigation in Andhra Pradesh and Tamil Nadu to benefit.
Mumbai will become a world class financial city.
To study climate change Govt. to appoint committee.
Defence : allocation up at 96000 crore.
e-governence programme : Allocation raised to 719 crore.
Overseas investment: even allowed by individuals via MFs.
Rural electrification : Rs 3983 crore.
PAN: sole identification number for markets.
Weather-based crop insurance scheme.
Tech upgradation scheme : Allocation up from 535 to 911 crore.
North-East: Rs 14365 crore allocated
Textile parks : Allocation up from Rs 189cr to Rs 425cr.
Farm credit growth doubled in two years.
Average inflation seen between 5.2%-5.4%.
Tourist infrastructure : Allocation up at Rs.520 crore.
Women-specific programme : Rs 8795 crore.
National Highway Development Programme : allocation up from 9948 to 10667 crore.
Fertiliser sector : Rs 22452 crore subsidy.
For NABARD : Rs 1800 crore allocation.
NABARD to issue rural bonds worth 5000 crore.
FDI in Apr-Jan at $12.5 per cent.
Central PSUs to invest Rs 1.6 lakh crore in year 2007-08.
7 UMPPs under review. 2 of it will be approved by July.
Power capacity addition needs to be boosted.
Social security scheme for unorganised workers.
Aam Aadmi Bima Yojna Scheme will be started.
Special funds for coffee and rubber.
Rs 11,000 crore for irrigation project.
Govt to scale up production of certified seeds.
Rural banking to benefit.
Bharat Nirman allocation up 31.6% to Rs.24600 crore.
Education allocation up 34.2%;school education 35%.
Allocation to health hiked by 21.9% to Rs 15291cr.
24 lakh hectares under new irrigation projects.
XI Plan target of 4% Growth in agriculture sector.
Rs. 2800 crore for Sampurna Grameen Yojana.
The strategy for polio eradication is revised.
Rs 1290 crores proposed for polio eradication.
The National Rural Employment Guarantee Scheme - initial allocation Rs. 12000 crore.
National Aids Programme scheme will start in 2007-08.
1 lac scholarship to be introduce every year.
National Means and Education Scheme for students above class 8.
The economy is in stronger position than before.
Union Budget 2007-08 will be presented by Finance Minister Mr. P. Chidambaram in the Parliament on 28-Feb-07 from 11 AM IST.

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