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Direct Taxes

threshold limit for all assessees increased by Rs. 10,000. 80D medical relief increased to Rs. 15000.

Surcharge on IT removed for SMEs with income of 1 Crore or less.

5 year IT holiday on 2,3,4 star hotels in Delhi, NCR for Commonwealth Games.

Effective corporate tax rate is 19%. MAT to be applicable to certain companies.

VC funds will get pass through status in biotech, IT, nanotech, seed research and devpt, pharma research, poultry, biofuels, hotels & convention centres.

(..furore in house..)

Capital Gains tax on certain works of art.

Tax on dividends raised to 15%. FBT on ESOPS.

Additional Education Cess of 1% on ALL TAXES for secondary education and implementing reservations.

Tax proposals

Gross Tax revenues have grown by 20% last year. Tax GDP ratio at 11%.

Customs Duty

Peak rate for non agri products reduced to 12.5 to 10%. Chemicals down to 7.5%.

Fully exempt coking coal, regardless of ash content. Gem and jewelry reduced to 3%.

Irrigation equipment reduced to 5%. Medical equipment reduced to 5%.

Import duty of 3% on private aircraft. CVD and additional customs duty also applicable.

No change in general CENVAT rate or service tax rate.

Biodiesel fully exempt from exise duty.

Water purification devices fully exempt.

Cement excise duty reduced to 350 / metric ton only for cement sold at a price of Rs. 190.

Excise duty on cigarettes increased by 5%. Excise duty on beedis applied.

Exemption increased from 4 lakh to 8 lakh for small service providers.

Service tax on services involved in a Works Contract.

Technology business incubators to be exempt from service tax.

Clinical drug trials exempt. Telecom content providers exempt.

Govt to acquire RBI’s shares in SBI for 40,000 crore.

Report on making Mumbai a regional financial centre to be made public, consensus to be obtained on major recommendations.

Vocational education mission to be started, public-private partnership tapped. Initial funding 50 crore.

Disabled persons employment to be rewarded by government. EPF and ESI employer contributions to be refunded for the first three years.

GB Pant University and TN Agri University to be given Rs. 50 crore as special grant.

VAT revenues of implementing states have increased by 13%. CST to be phased out. CST to be reduced from 4% to 3% from April 1.

Revenue deficit reduced by 0.1% as expected.

RRB’s to undertake aggressive branch expansion, SARFAESI to be applicable to them. NRE deposits can be accepted.

Reverse Mortgage products, Mortgage Guarantee Companies are new initiatives.

IOSCO conference in Mumbai.

PAN is the sole identification number for all participants in capital markets, with proper prefixes/suffixes as per instruments.

Equity in group companies can be used to raise capital. Infrastructure mutual funds to be given impetus.

2 wholly owned foreign subsidiaries of IIFCL to provide credit to Indian companies to develop infrastructure, using forex reserves.

$12.5 Billion FDI last year.

Electricity Generation is still a concern. 2 more ULPP’s to be awarded by July.

Work on Golden Quadrilateral work nearly complete.

Viability gap funding for 30+ projects under public-private partnerships. Pace is too slow.

26 integrated textile parks approved, funding increased.

SME sector credit from banks to be based on credit rating.

Foreign trade is growing at twice the rate of the GDP.

100% subsidy to small and medium farmers via NABARD to build rain water catchment wells. Each well will cost Rs. 4000.

T&V (from the Green Revolution) to be restarted.

Fertilizer subsidy increases. Alternative method of delivering subsidy directly to farmer to be developed.

NABARD Rural Bonds to help refinance rural credit by co-operative societies.

Death & Disability benefits through LIC called Aam Aadmi Beema Yojna for rural landless households, 50% subsidized by Centre.

Sops for SC/ST students studying post matric.

Focus on scholarships to minority students in backward districts.

Rs. 7000 crore through ‘better tax administration’ is Plan B.

Tapping of resources outside budget to invest in infrastructure is Plan C.

Goal of doubling farm credit in three years was achieved in 2 years.

Concern in stagnation in production of pulses, especially availability of seeds.

World Bank gives 2182 crores to TN to restore water bodies.

National Rural Health Mission is on schedule. Major emphasis on mother-and-child care, prevention of communicable diseases.

Over 3 lakh ASHA’s have been recruited, 2 lakh trained. Health Delivery shouldnt be a problem.

Funds increased to 9000+ crore.

Special focus on AIDS. NACP 3 will target high risk groups.

Polio eradication integrated into NRHM.

NREGS (rural employee guarantee) to be expanded from 200 districts to 330+ districts.

Issue prices of foodgrains under PDS remain unchanged. PDS to be computerised.

FM discusses the commodity price rise, places onus on CM’s to keep a watch on inflation.

‘Bharat Nirman continues to make impressive progress’.

‘The goal is faster and more inclusive growth’.

GBS (Gross Budgetary Support) increased by Rs. 1 lakh crore.

Funds to Bharat Nirman increased by 30%

Funds to Primary School Education increase by 25%

2 lakh more teachers to be appointed.

Funds for Secondary Education doubled.

National Means cum Merit Scholarship to arrest dropouts. Rs. 6000 per student per year.

FM reiterates high credit growth is not comfortable and recounts the measures against inflation.