Hey Guys
Here is a short, and incomplete summary of my understanding of the Budget Presented by the Finance Minister : Mr P.Chidambaram today. I will put forward my novice point of views very soon :)
- Education Cess Increased to 3% from 2%
- MAT Introduced in IT Sector @ 11.33% of Adjusted Book Profits
- Excise Duty on Cement Increased to Rs 600 Per Ton for bags above Rs 190
- Bags Below Rs 190 Mark, Excise Duty is slashed by Rs 50
- Non Taxable Income increased to Rs 1,10,000 Only
- The markets were spared hikes in STT and long term capital gains tax,
- Dividend Distribution Tax
- There will be no surcharge on companies with less than Rs 1 crore taxable income.
- The FM has raised the Dividend Distribution Tax on companies to 15%, and on mutual funds to 25%.
- 2 per cent interest subvention scheme for short-term crop loans. The scheme will get an additional allocation of over Rs 1,600 crore.
- The effective rate of customs duty has been reduced.
- The peak rate for non-agricultural products has been brought down from 12.5% to 10%.
- The ad valorem component of excise duty on petrol and diesel has been brought down from 8% to 6%.
- CST rate reduced from 4 to 3 per cent effective APRIL 1, 2007.
- He has raised the exemption for small service providers from Rs 4 lakh per annum to Rs 8 lakh per annum.
- Consequently, 2 lakh assessees out of a total of 4 lakh assessees will go out of the service tax net, resulting in a revenue loss of of Rs 800 crore.
- Service tax will now be payable on services outsourced for mining of mineral, oil or gas and renting of immovable property for use in commerce or business.
- The Budget has introduced a new exchangeable bond instrument. Using this instrument, holding companies can raise money through bonds against shares
- He proposes allowing mutual funds to operate dedicated infrastructure funds.
cheers
Niks
