surf india

India Union Budget 2007-08

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TAX SLABS (Comparison Chart)

Slab Existing Rate (%) Slab New Rate (%)
Up to Rs 1,00,000 Nil Up to Rs 1,00,000 Nil
Rs 1,00,000 - Rs 1,50,000 10.2 Rs 1,00,000 - Rs 1,50,000 10.3
Rs 1,50,000 - Rs 2,50,000 20.4 Rs 1,50,000 - Rs 2,50,000 20,6
Rs 2,50,001 - Rs 10,00,000 30.6 Rs 2,50,001 - Rs 10,00,000 30.9
Above Rs 10,00,000 33.66 Above Rs 10,00,000 33.99

Note: Education cess increased from 2 per cent to 3 per cent. - Surcharge of 10 per cent for incomes above Rs 10 lakh unchanged. - Basic exemption limit for women raised to Rs 1,45,000 and for senior citizens to Rs 1,95,000.

TAX AMOUNT

Income (Rs) Existing Tax amt Proposed Tax amt Income (Rs) Existing Tax amt Proposed Tax amt
100000 Nil Nil 600000 132600 132870
125000 2550 1545 700000 163200 163770
150000 5100 4120 800000 193800 194670
175000 10200 9270 900000 224400 225570
200000 15300 14420 1000000 255000 256470
250000 25500 24720 1100000 288660 290460
300000 40800 40170 1200000 322320 324450
400000 71400 71400 1500000 423300 426420
500000 102000 101970 2000000 591600 596370
510000 105060 105060 2500000 759900 766320

DIRECT TAXES

  • - Income tax exemption limit hiked by Rs 10,000.
    * 1.1 lakh for men
    * 1.45 lakh for Women
    * 1.95 lakh for senior citizen
  • - Medical insurance premium increased to Rs 15,000 (senior citizen: Rs 20,000).
  • - Corporate income tax unchanged. Surcharge removed for companies with taxable income of Rs 1 crore or less.
  • - Minimum Alternate Tax (MAT) extended to IT companies and companies under Section 10A & 10B.
  • - Tax holiday for undertaking in Jammu & Kashmir extended up to March 31, 2012.
  • - Rate of dividend distribution tax raised from 12.5% to 15% on dividends distributed by companies and 25% on dividends paid by money market MFs and liquid MFs.
  • - Banking Cash Transactions Tax (BCCT) exemption limit for individuals and HUFs increased from Rs 25,000 to Rs 50,000.
  • - Additional cess of 1% levied on all taxes to fund secondary and higher education.
  • - Employees’ stock option plan (ESOP) brought under the Fringe Benefit Tax (FBT).

SERVICE TAX

  • - Service Tax exemption limit for small service providers raised from Rs 4 lakh to Rs 8 lakh.
  • - Service Tax extended to services outsourced for mining of mineral, oil or gas and commercial rentals. Residential properties, vacant land used for agriculture and similar purposes, land for sports, entertainment and parking purposes, and immovable property for educational or religious purposes excluded.
  • - Development and supply of content for use in telecom and advertising purposes, asset management services provided by individuals and design services brought under the Service Tax.
  • - Services provided by resident welfare associations exempted from tax.
  • - Services provided by technology business incubators with annual turnover not more than Rs 50 lakh exempted from tax for first three years.

WHO WINS - WHO LOOSE

I am Winner I am Looser
Senior citizens get medical insurance Every one has to pay more education cess
SMEs get a shot in the arm with tax benefits Individual investors in money market and liquid MFs.
New hotels operational by March 31, 2010, in the NCR: Five-Year Income Tax Holiday.

WHAT IS CHEAPER - WHAT IS EXPENSIVE

Look Price Falls Look Price Rises
Pet food Cigarettes/Bidis
Water purifiers Pan masala with tobacco
Steel Set-top boxes
Mouth fresheners Cars
Biscuits & food mixes Eating out at fast food joints
Watches Edible oils
Umbrellas, Footwear Brushes
DVD writers Movie tickets
Plywood
Coal
Chemicals and plastics
Bio-diesel
Medical equipment
Irrigation equipment
Clothes
Pan masala without tobacco
Clinical trial of new drugs
RWA membership

THE AAM ADMI BUDGET

  • - The National Rural Employment Guarantee Programme - initial allocation Rs. 12000 crore and extended to another 30 districts.
  • - One lakh jobs for differently-abled persons.
  • - Sampoorna Gramin Rozgar Yojana (SCRY): allocation of Rs 2,800 crore.
  • - Swarnajayanti Gram Swarozgar Yojana (SGSY): allocation of Rs 1,800 crore.
  • - 1,396 Industrial Training Institutes (ITIs) to be upgraded.
  • - Interest free loan of Rs 2.5 crore proposed to be granted to each ITI.

BUDGET TIT-BITS

  • - Good and service tax to come into effect from 2010, seven new services in tax net.
  • - GDP grew 8.6% in the October-December quarter.
  • - Expenditure is expected to rise 17%.
  • - Tax collections to grow 19.35%.
  • - Fertilisers, textile and cooking fuel continue to get government support.