Market Dynamics..: India: Budget 2007-08 Highlights

India's Union Budget 2007-08 Key Highlights/Summary:

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.
Coking 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.