Indian Budget 2008 - Highlights

INDIAN BUDGET 2008 - HIGHLIGHTS

- Direct tax proposals revenue neutral.
- Central Sales Tax cut to 2% from 3%.
- Banking cash transaction tax withdrawn.
- Securities Transaction Tax rates unchanged.
- DDT unchanged at 15%.
- Govt. to introduce commodities transaction tax, like STT.
- Five year tax holiday for promoting cultural tourism.
- Five years tax holiday for setting up hospitals in tier II and tier III region for providing healthcare in rural areas from April 1, 2008.
- Leavy of STT only on option premiums.
- Short term cap gains hiked to 15%.
- 10% income tax for in the range of Rs. 1.5 - 3 Lacks.
- 30% Income Tax for Income above Rs. 5 Lakhs.
- Personal income tax exemption slab for women at Rs. 1.8 Lakh.
- Personal income tax exemption slab Rs. 1.5 Lakh.
- Excise duty on bulk cement at Rs. 400 / tonne.
- Excise cut on all pharma goods at 8% vs 16%.
- Excise duty on some paper cut to 10% from 12%.
- Excise duty on hybrid cars cut from 24% to 14%.
- Cigarettes to be taxed more.
- Custom duty on few bulk drugs cut to 5% vs 10%.
- 6th Pay Commission to submit report by March 31.
- PDS - Public Distribution System - through smart cards in Haryana and Chandigarh to start on pilot basis.
- Defence allocation upped to Rs. 1,05,000 cr from Rs. 96,000 cr.
- Defence allocation hiked by 10%.
- PAN requirment extended to all financial markets.
- PAN sole identification in securities market.
- To creat risk capital fund in SIDBI.
- Bank of Mah says should not be negative if govt reimburse.
- Total agri loan waiver estimated at Rs. 50,000 cr.
- One-time settlement for other farmers.
- National agri insurance plan to get Rs. 64 cr in FY 09.
- 75% farm credit by Scheduled Commercial Bank.
-