- Dividend Distribution Tax unchanged at 15%.
- Central Sales Tax cut to 2% from 3% - Positive for Food Processing companies.
- India to start GST from April 1, 2010.
- No Change in STT Rates.
- To withdraw banking cash transaction tax from April 1, 2009.
- To give 5 Year Tax Holiday for Hotels in some areas.
- Increase in short term capital gain tax from 10% to 15%.
- On an income of Rs5 lakhs - savings amount to Rs45,000.
- To grant 5 year tax holiday for new hospitals to be setup in specified areas - +ve for Apollo Hospital, Fortis etc.
- Weighted deduction of 125% for R&D Buy on Ranbaxy Labs and Dr Reddy Labs.
- Major Income tax Changes - to boost consumer spending Buy Marico and GSK Consumer.
- No change in corporate tax rate and no change even in surcharge.
- In case of Women, Exemption limit increased to Rs1,80,000.
- Senior citizen exemption raised from 1,95,000 to 2,25,000.
- Proposes to increase personal income tax exemption limit to Rs1,50,000.
- Minimum relief Rs4000 for every assesse.
- Excise duty on bulk cement imposed at Rs400/tonne or 14% Ad valorem whichever is higher - Neutral for Cement companies .
- Customised software under service tax net.
- Higher excise on packaged software (8% to 12%) - Negative for Software sector.
- To tax Filter and Non Filter Cigarettes on Par - Marginally negative for ITC.
- Fall in duty on wireless data cords from 16% to Nil - Positive for Telecom Sector.
- No change in excise duty structure on Retail Cement.
- To cut excise duty on all goods in Pharma from 16% to 8% - Positive for Pharma Sector.
- To cut excise on some papers, paper products.
- To reduce excise duty on two wheelers from 16% to 12% Buy Bajaj Auto.
- To reduce excise duty on small cars from 16% to 12% Buy Maruti and Tata Motors.
- To reduce General CENVAT rate from 16% to 14%.
- To cut customs duty on crude, unrefined sulphur.
- To cut project import duty to 5% from 7.5%.
- Custom Duty reduced to Nil on Steel melting scrap from 5% - Positive for Non Integrated Steel Players .
- India to cut duty on certan bulk drugs to 5% - Positive for Pharma Sector.
- Proposes No Change in Peak Customs Duty.
- Current Tax-GDP ratio at 12.5.
- Fiscal Deficit to be 2.5% by FY09 - Need only 1 year to eliminate Revenue Deficit.
- Revenue Deficit to be 1.4% and Fiscal Deficit to be 3.1% of GDP.
- Planned Expenditure about 34.2% of total expenditure.
- India to spend Rs 1.05Trn on Defense sector, up 10% - Positive for Defense Companies.
- Allocation for TUF loan hiked about 20% - +ve for Textile Sector.
- Thrust on Smart Cards Buy on Bartronics India.
- Accelerating bidding process for 5 UMPPs - +ve for PFC.
- Likelky Subvention of agri loans waivers to neutralise impact on banks.
- Government allocates RS16.8bn for IT Sector Buy on 3i Infotech and TCS.
- India to spend more on Textile Sector - Buy on Bombay Dyeing and Alok Ind.
- India to get as much as $8bn from latest Gas, Oil.
- India to allocate Rs129 bn for highways Buy on HCC,IVRCL.
- National Fund for Power Transmission and Distribution.
- To award 4th UMPP shortly - +ve for Power.
- India to achive power expansion target in 11th plan - +ve for Companies like BHEL.
- Waiver of previous loans and fresh loans - Positive for Agriculture/ Fertiliser companies .
- India to spend more on Rural Development and Roads - Positive for Infrastructure sector.
- Manufacturing slowdown due to rising rates and rupee.
- Growth in capital goods still high at 20.2%.
- Savings Rate at 35.6% and Investment Rate at 36.3% by end of 2008.
- Total value of overdue loans including OTS at Rs60,000cr.
- Debt Waiver to be completed by June 30 2008 - Farmers to be eligible for fresh loans post waiver.
- Clarity awaited on details of scheme regarding reimbursement to banks of waiver amounts
Waiver Amounts to 4% of Total Bank. - Scheme of debt waiver of all agri loans upto March 2007 - Negative for Banking Sector.
- FM eyeing Elections - Slew of populist measures announced.
- Complete waiver of loans for marginal and small farmers.
- Government introduces scheme for debt waivers for.
- FM says fertiliser subsidy to continue.
- 5 lac hectare increased irrigation potential.
- India to spend Rs200bn on irrigation-Positive for Finolex Ind and Jain Irrigation.
- Government to spend additional Rs120bn on 5-Yr plan programs.
- Government increases thrust on santitation - s Buy Electrosteel Castings.
- Increase in sanitation allocation positive for DI pipe makers such as Electrosteel castings.
- Increased allocation to Rajiv Gandhi Drinking water scheme to Rs7300cr from Rs6500cr, beneficial to companies like IVRCL.
- Increased spending on polio to benefit Panacea Biotech.
- India to spend Rs120bn on National Rural Health Plan.
- Education and Health Sector to be twin pillars of growth.
- 16,534cr allocated for Health Sector an increase of about 15%.
- Additional allocation for education beneficial for Everonn, Educomp, Core Projects, NIIT etc.
- India to increase spending on Bharat Nirman plan.
- Allocation for education to be raised to Rs34,400cr from Rs28,674cr.
- Allocation for education to be increased by 20%.
- India to increase Gross Budgetary support in FY09.
- Agriculture estimates to grow at 2.6% for FY08.
- FM confident of maintaining 8.8% GDP growth average.
- FM says agri growth disappointing.
Saturday, March 1, 2008
Union Budget Highlights - 2008.
Posted by Admin at 12:46 PM
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