> Annual Budget '08

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Equitymaster: Budget 2008 Measures

• FM finishes with the Budget speech
• Banking transaction tax to be withdrawn from April 1 2009
• Commodities transaction tax to be imposed in line with STT
• Short term capital gains tax raised from 10% to 15%
• Tax on income above Rs 5 lakh-30%
• Tax on income between Rs 3 lakh to Rs 5 lakh-20%
• Tax on income between Rs 1.5 lakh to Rs 3 lakh-10%
• Tax on income upto Rs 1.5 lakh-Nil
• No changes in corporate tax rate
• Threshold limit for all IT assesses increased from 110,000 to 150,000
• Threshold level for small service providers to be increased
• Service tax on money changers, tour operators
• Excise duty reduced to nil on anti-AIDS drugs
• Excise duty reduced on automobiles (buses, small cars)
• General CENVAT rate reduced
• Customs duty on crude reduced from 5% to 2%
• Customs duty for convergence products (media, telecom) reduced to 5%
• Peak rate of customs duty for project imports reduced
• Peak rate of customs duty for non-agricultural products maintained at 10%
• Tax to GDP ratio to rise to 12.5% in FY08, from 9% in 2004
• Tax to GDP ratio to rise to 12.5% in FY08, from 9
• Fiscal deficit to be 3.1% in FY08, revenue deficit at 1.4%
• Plan expenditure in FY09 at 244,000 cr, 30% of total expenditure
• Proposes to set up monitoring scheme for central plans
• Rs 624 cr allocated for Commonwealth Games in 2010
• Defence allocation increased to Rs 105,000 cr for FY09
• Rs 32,000 cr to be provided as food subsidy in FY09
• To launch a world-class skill development programme
• Extends PAN requirement for all financial transactions
• To take measures to improve working of corporate debt market
• TUF for textile industries to be continued - allocation increased
• Broadband connections across villages proposed
• Government to appoint a coal regulator in FY09
• Rs 5,500 cr budget subsidy for rural electrification in FY09
• National fund to be set up for power T&D reforms
• Rs 3,500 crore loans to central PSUs in FY09
• Rs 16,000 crore equity support to central PSUs in FY09
• Rs 60,000 crore of loans to be waived off/provided relief on
• Scheme for debt waiverrelief for farmers
• Rural employment guarantee scheme to be rolled out across India
• Rs 16,000 crore for healthcare spending in FY09
• Proposes 16 central universities to be set up
• 6,000 high quality schools to be opened in FY09
• Education spending to be increased by 20% in 2008-09
• Bharat Nirman to get over Rs 30,000 crores
• Gross budgetary support to be upped to 246,000 crores in 08-09
• Reiterates government's intention of inclusive growth
• Hints at inflationary pressures
• Indicates concerns on rising commodity prices
• FM maintains stance on strong economic growth
• FM begins the Budget speech
• Budget presentation to commence at 11:00 am

Budget: What’s cheaper and what’s dearer

New Delhi, Feb 29: Finance Minister P Chidambaram presented the federal budget for 2008-09 on Friday, the fifth and final full one of the administration. Here is the impact of the Budget on the following commodities.

Cheap

# Washing Machine

# Air Conditioner

# Motor Cycle 5% discount

# Two wheelers

# Hyundai vehicles Rs 12-14000 less

# Set Top Box

# Dairy Products

# Tea and Coffee

# Live saving drugs

# IT products

# Sport Materials

# Small Car

# Paper and its products

# Rates of 3-4 star hotels

# Packaged coconut water

# Fertiliser

# Puffed rice

# Shampoo

# Hair Oil

# Jewellery

# Water Puriifier

# Naptha

Costly

# Mobile (Nokia Express phone, Samsung)

# Cigarette

# Packaging Software

# On ULIP Service Tax will be charged

# Bulk cement

# Unbranded petrol and diesel