BUDGET NEWS FLASH

  • BCTT stands withdrawn; Exemption norms for charitable trusts/institutions to be tightened;
  • STT like Commodity Exchange Tax introduced;
  • Sponsorship of employees sportspersons + guest houses taken outside FBT;
  • Short-term capital gains tax hiked to 15%; No change in STT rate;
  • Parent company allowed to avail dividend distribution tax ;
  • Tax holiday for hospitals in rural India announced;
  • Five-year Tax holiday for hotels in UNESCO-recognised sites;
  • Outsources researched : weighted deduction of 125% allowed
  • Income Tax exemption limit hiked to Rs 1.5 lakh from Rs 1.1 lakh; Exemption for women assessees hiked to Rs 1.8 lakh; Sr citizens exempted upto Rs 2.25 lakh;
  • No change in corporate tax rate;
  • Sec 80C benefits extended upto Rs 15000/- for medical insurance of parents;
  • Exemption limit for small service providers hiked to Rs 10 lakh;
  • Four new services under service tax net : Asset management service + customised software + games of change;
  • 1 % NCCD shifted from textile to cellular industry;
  • Specific duty levied on unbranded petrol;
  • Bulk cement and packaged cement : Duty parity achieved;
  • Anti-AIDS drugs exempted from excise duty;
  • Small cars and two-wheelers : Excise duty reduced from 12% to 8%;
  • Cenvat rate reduced to 14%; All pharma goods to attract only 8% excise duty;
  • Export duty on chrome hiked ;
  • Duty exemption to Naptha withdrawn but not for fertiliser;;
  • Sports goods : Duty on machinery reduced to 5%; Duty for diamond industry reduced;
  • Specified life-saving drugs : Customs duty reduced to 5%; exempt from excise duty;
  • Peak rate for non-agri products not changed; Duty for project imports reduced to 5%;
  • Revenue defict is 1.4%; Fiscal deficit to be 3.1 %;
  • Central Plan Scheme Monitoring System to be set up to monitor 1000 Central Schemes ;
  • Rs 50 Cr allocated for tiger protection force;
  • Climate change : Institutional mechanism to be put in place;
  • Defence outlay hiked by 10%;
  • Funds for 22 Sainik Schools; Smart card-based PDS delivery system to be introduced by Haryana + Chandigarh on pilot basis;
  • Rs 750 Cr earmarked for ITIs upgradation;
  • Non-profit corpn to be set up for skill imparting; Rs 1000 Cr earmarked;
  • Pan Indian market for Securities : Empowered Committee of States to be urged to look into stamp duty;
  • Bond trading to be encouraged;
  • Rs 2000 Cr Risk Funding scheme to be introduced by SIDBI;
  • Banks to launch total financial inclusion scheme;
  • Coal Regulator to be in place soon; Allocation for IT Ministry hiked;
  • Allocation for roads in N-E hiked;
  • Budget announces National T & D Fund for power sector;
  • Rs 5500 cr for Rajiv Gandhi rural electrification scheme;
  • Rs 3003 cr budget support for CPSEs;
  • Debt relief & debt waiver scheme to be completed by June, 2008; Over 1 cr farmers to get benefits; Total package to be worth Rs 60,000 Cr;
  • Scheme for debt waiver & debt relief for farmers : All agri loans upto Dec, 2007 to be covered - marginal & small farmers to get complete waiver; One-time settlement scheme for other farmers; Rescheduled loans also to be eligible for waiver;
  • Nutrient-based subsidy scheme being examined for agri sector;
  • Plantation crops like tea, coffee, rubber etc to get budget support;
  • Rs 500 Cr more for drip and sprinkler water irrigation scheme;
  • Gross Capital Formation in agri sector to be hiked to 16% to realise 4% growth rate;
  • LIC to cover all women Self Help Groups; Rs 500 Cr earmarked;
  • 54 Ministries / Depts set up cells for gender budgeting - Rs 1000 Cr for women specific schemes;
  • Budget support for Minorities Ministry hiked to Rs 1000 Cr;
  • Arunachal gets Rs 500 Cr;
  • Budget allocation for N-E hiked to Rs 16447 Cr;
  • Budget support for Rajiv Gandhi Drinking Water Scheme hiked;
  • Allocation for Rural and Urban employment scheme hiked;
  • AIDS control programme to get Rs 993 Cr;
  • Healthcare budget outlay hiked by 15%; Wages for Anganwadi workers hiked to Rs 1500;
  • Health insurance scheme for workers in unorganised sector; Two National Institutes for ageing to be set up;
  • 6000 Model Schools Scheme to be introduced; 20 Navodaya Vidayalaya in SC/ST districts;
  • Allocation for education hiked to Rs 34400 Cr;
  • Budget allocation for Bharat Nirmal hiked to Rs 31800 Cr;
  • 52 villages getting telephone connections every day;
  • Govt to moderate capital inflows on temporary basis;
  • Agri sector projected to grow at 2.6 % this fiscal;
  • CBDT Member (Budget) A J Majumdar is retiring today; Farewell at 2.30 PM;
  • Will PC extend tax holiday for EoUs? (See 'Breaking News');
  • Survey hints at taxing e-commerce;