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Comment: 5% hike in excise duty on cigarettes
Comment: Additional revenue from direct taxes to yield Rs.3000
crore and indirect taxes revenue neutral: FM
Tax exemption on aviation turbine fuel sold to turbo prop
aircraft extended to all small aircraft less than 40,000 kg.
Withdrawals by central and state governments exempted from Banking Cash Transaction Tax. The limit for individuals and HUF raised from Rs 25,000 to Rs 50,000.
Comment: No change in STT (Securities Transaction Tax)
Comment: Cement companies too will have to pay higher tax.
Comment: Tech companies will now have to pay MAT.
Comment: Additional revenue from direct taxes to yield Rs.3000
crore and indirect taxes revenue neutral.
Comment: Expenditure on samples and free distribution items to be
exempted from fringe benefit tax.
Comment: ESOPs to be brought under FBT.
Comment: SENSEX PLUNGES BY 512 POINTS 12,978 AS MARKET SHUDDERS UNDER CHIDAMBARAM'S TAX PROPOSALS. NSE NIFTY DOWN 150 POINTS AT 3743.
Comment: Cash withdrawal tax limit raised to Rs 50,000 for individuals.
Comment: Five year tax holiday for two, three, four star hotels
and convention centres with a seating capacity of 3,000 in NCT of Delhi, Gurgaon, Ghaziabad, Faridabad and Gautam Buddha Nagar for Commonwealth Games. Twenty thousand more rooms required.
Comment: Minimum Alternate Tax being extended.
Comment: Benefits of investment in venture capital funds confined
to IT, bio-technology, nano-technology, seed research, dairy among some others.
Comment: Stock market down 440 points as Finance Minister unveils
tax proposals.
Comment: Capital gains tax: Dividend distribution tax raised from 12.5 to 15 per cent.
Comment: GDP grows 8.6% in Q3; farm sector down at 1.5%
Indian economy continued to grow at a rapid pace of 8.6 per cent in the third quarter of the current financial year, led by the manufacturing and services sector while farm growth plunged to a low of 1.5 per cent.
The 8.6 per cent expansion during October-December 2006-07 followed the growth of 8.9 per cent and 9.2 per cent in the first and second quarters of this fiscal, taking the average growth so far this year to just below nine per cent.
Manufacturing rose 10.7 per cent in the third quarter compared to 8.2 per cent a year ago, while farm sector growth declined to a mere 1.5 per cent as against 8.7 per cent in the third quarter of 2005-06, according to latest government estimates released today.
In services, construction growth slowed down to 9.8 per cent from 16.6 per cent, financial services rose by 11.6 per cent compared to 9.8 per cent a year ago. Trade, hotels, transport and communication sector witnessed a growth of 13 per cent from 10 per cent a year ago.
Growth in the mining sector stood at 5.7 per cent as against 2.7 per cent, while electricity, gas and water supply sectors registered a growth of 9.3 per cent compared to 5 per cent in the year-ago quarter.
Comment: Tax free bonds to be issued by state-owned urban local
bodies.
Comment: Surcharge on Corporate income tax on companies below Rs
1 crore removed.
Comment: INCOME TAX: Deduction in respect of medical insurance under Section 80 (D) increased to Rs 15,000 and Rs 20,000 for senior citizens.
Comment: INCOME TAX: Income tax limit not to be changed. Threshold limit raised by Rs 10,000 giving every assessee a relief of Rs 1,000.
Comment: Service tax on Residents Welfare Associations whose
members contribute more than Rs 3,000.
Comment: Two lakh people to benefit out of service tax exemption.
Govt to lose Rs 800 crore as a result.
Comment: No change in corporate tax rates. No surcharge for SMEs.
Comment:
Direct Taxes: Better tax compliance by individuals.
Moderate tax regime: Personal income tax: Some relief to the taxpayers. Exemption limit increased to Rs 110,000, for women Rs 145,000 and for senior citizens up at Rs 195,000.
Deduction: Medical insurance to be increased to Rs 15,000; and for senior citizens Rs 20,000.
Corporate tax: No surcharge for firms with a taxable income of Rs 1 crore or less.
Comment: Excise duty on cement reduced from Rs 400 per tonne to
Rs 350 per tonne for cement bags sold at Rs 190 per bag at
retail market. Those sold above Rs 190 will attract excise
duty of Rs 600 per tonne.
Comment: Excise duty on Pan Masala without tobacco as mouth
freshners reduced from 66 per cent to 45 per cent.
Comment: Three per cent import duty to be levied on private
importers of aircraft including helicopters.
Comment: No change in general CENVAT rate.
Comment: Export duty on iron ore and concentrate at the rate of
Rs.300 per tonne. Export duty on Chromium proposed at Rs.2000 tonne.
Ad valorem duty on petrol and diesel to be brought down
from eight to six per cent.
Comment: Small scale industries excise duty exemption raised from
Rs one crore to Rs 1.5 crore.
Comment: Manufacturing sector grows at 10.7 per cent, agriculture
at 1.5 per cent during October-December 2006-07.
Comment: Excise duty for plywood reduced from 16 per cent to eight
per cent.
Comment: Food mixes to be fully exempted from excise duty.
Comment: Bio-diesel to be fully exempted from excise duty.
Comment: Specific rates of excise duty on cigarettes increased.
Comment: Pan masala containing tobacco excise duty 66%. Non-tobacco mouth fresheners excise duty cut to 45%
Comment: Exicse duty on cigarettes and bidis to be raised.
Comment: Cement: Excise duty to Rs 350 per MT at cement sold for less than Rs 190. Higher duty for more expensive cement.
Comment: Economy grows 8.6 per cent in third quarter of this fiscal compared to 9.3 per cent in the year-ago period
Comment: No excise duty on water purifcation devices.
Comment: Duties on seconds and defective reduced from 20 to ten
per cent.
Comment: Customs duty on polyster to be reduced from ten per cent
to 7.5 per cent.
Comment: Fiscal deficit for 2007-08 pegged at 3.3 per cent of GDP
at Rs.1,50,948 crore.
Revenue deficit at Rs.72,478 crore which will be 1.5 per
cent.
Comment: Total expenditure during 2006-07 estimated at Rs.6,80,521
crore including Rs.40,000 crore for SBI shares.
Comment: Duty on lift irrigation, agricultural sprinklers and food
processing equipment reduced from 7.5 per cent to five per
cent.
Comment: Duty on pet food reduced from 30 per cent to 20 per cent.
Comment: Duty reduced on watch dials and movements and umbrella
parts from 12.5 to five per cent.
Comment: Duty on sunflower oil to be reduced by 15 per cent.
Comment: Ad valorem duty cut to 6% on petrol and crude.
Comment: No change in the CENVAT or Serice Tax rate
Comment: Indirect Taxes: Peak customs duty rate cut to 10%
Comment: Indirect Taxes: To bring peak duty rate down for non-farm products from 12.5 percent to 10 percent, on chemicals and plastics cut to 7.5%, coking coal free of duty; customs duty on manmade fibre cut to 7.5% from 10%; gems and jewellery: cut and polished diamonds duty down to 5%; duty on drip irrigation systems cut to 5%; import duty on medical equipment cut to 7.5%; crude and refined edible oils duty to be cut by 15%.
Duty on pet foods reduced to 10%
Duty on watch dials reduced and umbrella parts to 5%
Comment: Tax proposals: Tax rates will be stable, says FM. Increase in tax revenue proves govt’s promise. Tax to GDP ration up to 11.4 per cent. Tax rates to be kept moderate.
Comment: Govt allows delivery-based short selling by institutions.
Comment: Rs 150 crore to be given to Ministry of Youth and Sports
for Commonwealth Games and Rs 350 crore to the Delhi
Government for the purpose. Rs 50 crore to be provided for the Commonwealth Youth Games in Pune.
Comment: An Expert Committee to be set up to study the impact of
climate change in India.
Comment: Central Sales Tax rate to be reduced to 3%, says FM
Comment: EPF and jobs: Government to create 1 lakh jobs for physically challenged. Government will reimburse the EPF contributions of employers in the case of physically challenged people taken on rolls of the company and included in the PF scheme.
A fund of Rs 150 crore to be started which will go up to Rs 450 cr.
Comment: Rs 50 crore provided to begin work on vocational
education mission for which Task Force in Planning Commission is chalking out a strategy.
1,396 Indian Technical Institutes to be upgraded to achieve technical excellence.
An autonomous Debt Management Office in government to be set up.
1,396 Indian Technical Institutes to be upgraded to achieve technical excellence.
Comment: Sports: Rs 150 crore for sports ministry and Rs 350 crore for Delhi for the Commonwealth Games.
Comment: A high-powered committee report aimed at making Mumbai a world class financial centre submitted. Public suggestions will be invited.
Comment: Govt ready to provide 1 lakh jobs for physically disabled with a salary limit of Rs 25,000 a month, FM.
Comment: E-governance allocation to be increased from Rs.395 to
Rs.719 crore.
Comment: Now you can own foreign stocks through Indian mutual funds: The finance minister says that Indian investors to be allowed investment in overseas capital markets through mutual funds. Mutual funds to set up Infrastructure Fund schemes.
Comment: Backward Regions Grant Fund to be raised to Rs 5800
crore.
Comment: Defence allocation increased to Rs 96000 crore. This
includes capital expenditure of Rs 41,922 crore. Any requirement for security of the nation to be provided, says FM.
Comment:
Markets: Indian investors to be allowed investment in overseas capital markets through mutual funds. Mutual funds to set up Infrastructure Fund schemes.
Comment: Markets: PAN to be made sole identity for participants in the security markets to strengthen capital market.
Comment: Defence Budget increased to Rs 96,000 crore
Comment: Proposals for banking and insurance sector:
The ceiling of loans for weaker sections under diferential rate of interest scheme will be raised from Rs 6500 to Rs 15,000 and in housing loan from Rs 5000 to Rs 20,000.
Regional Rural Banks, which are willing to take up greater responsibilities, to undertake aggressive branch expansion programme. One RRB branch for each of 80 districts so far uncovered. RRBs to accept NRE and FCNR deposits.
Insurance companies to launch a senior citizens scheme in 2007-08.
Regulations would be put in place for mortgage guarantee company for housing loans.
Insurance companies to launch a senior citizens scheme in
2007-08. Reverse mortgage scheme for senior citizens. Check out what reverse mortgage is: http://www.rediff.com/money/2007/jan/29retire.htm
Comment: Tourism infrastructure to get an allocation of Rs.520
crore as against Rs.423 crore last year.
Comment: Health insurance cover for weavers to be enlarged to ancillary industries. Allocation increased from Rs 241 crore to Rs 321 crore.
Comment: Northeastern region will get Rs 405 crore for highway
development. Road-cum-rail project over Brahmaputra in Bogibil, Assam.
Comment: Govt to follow export-friendly policies, as Indian exports are booming.
Comment: Roads: Allocation for National Highway Development programme to be stepped up from Rs 9955 crore to Rs 12600 crore.
Work on Golden Quadrilateral road project nearly
complete. Considerable progress made on North-South, East-West corridor and is likely to be completed by 2009, says FM.
Comment: Textiles: Technology Upgration Fund to be continued during the 11th Plan. Rs 911 crore to be provided for this.
Comment: Energy security high on government agenda.
Comment: Stock market slips again after partly recovering losses seen in early trade; Benchmark Sensex trading down by 375
points at 13,235.73 at 1145 hrs.
Comment: FDI inflows between April and January this fiscal year touched $12.5 billion, while portfolio investment
reached $6.8 billion, says FM.
Comment: What do you think of the Budget proposals so far? Tell us.
Comment: 70 lakh households to be covered under a social welfare scheme with LIC and with support from state governments.
50 per cent of the premium at Rs 200 per household to be given by the Centre. Rs.1,000 crore fund to be maintained by LIC for the purpose.
Central public sector enterprises will be given Rs 16,261 crore as equity support and loans of over Rs 2600 crore.
Comment: HOng Kong too: Hong Kong's stocks plunged, with the key index poised for its biggest drop in more than three years.
The Hang Seng Index tumbled 734.27, or 3.6 per cent, to 19,413.60 in early trade, headed for its biggest drop since October 23, 2003.
Comment: Meanwhile, South Korean stocks suffered the most in 32 months, continuing a global sell-offs in equity markets triggered by China's move to crack down on illegal investments.
The Kospi index slid 49.87, or 3.4 per cent to 1,404.73
in early trade. The measure is headed for its biggest loss
since June 11, 2004.
Comment: National Agricultural Insurance Scheme to be continued
for Kharif and Rabi this year.
Bonds worth Rs 5,000 crore to augment NABARD to be issued, says FM. These bonds will enjoy tax benefits.
Comment: Death and disability cover for rural landless families to
be introduced, known as 'Aam Aadmi Bima Yojana', says Chidambaram in his BUdget Speech.
Comment: National Agricultural Insurance Scheme to be continued
for Kharif and Rabi this year: FM.
Comment: Stock markets continue slow recovery, but keep growing following Budget proposals. Too early to say how they will react once the FM reaches teh tax proposals....
Comment: FM announces package for agriculture:
Special Purpose Tea Fund to rejuvenate tea production: FM
Rs. 100 crore allocated for National Rainfed Area
Authority.
One hundred per cent subsidy for small farmers and 50 per cent for other farmers for water recharging scheme.
World Bank signed agreement for revival of 5,763 waterbodies in Tamil Nadu. Loan component Rs 2,182 crore. To have a command area of four lakh hectares.
Similar agreement with Andhra Pradesh in March for recharge of 2,000 bodies. Command area 2.5 lakh hectares.
Comment: Farmers' credit likely to reach Rs.1,90,000 crore as
against the targeted Rs.1,75,000 crore during 2006-07: FM
Comment: Meawhile:
As part of a full-fledged war on rising prices, futures trading on staples wheat and rice have been suspended in all commodity exchanges with immediate effect.
In a circular to the exchanges, the Forward Markets Commission said no new wheat and rice contract should be launched till further notification.
FMC Director Anupam Mishra told PTI that operators have also been asked not to build or increase their position.
National Commodity and Derivative Exchange Managing Director P H Ravikumar told PTI that he was disappointed at the ban, given the positive tone of economic Survey with respect to commodities in the market.
Comment: FM syas he is confident of checking inflation.
Comment: Rs 2,25,000 crore farm credit proposed in the new
budget. A target of additional 50 lakh farmers to be brought under farm credit.
Comment: Rs 7,000 crore allocation for better tax administration
to be used for social schemes.
Comment: Markets slip again: BSE Sensex is at 13,164.00, down 314.83 points (-2.34%); while NSE Nifty is at 3,797.80, down 96.10 (-2.47%)
Comment: New Industrial Policy for the northeastern region to be
in place before March 31.
Comment: Women's development allocation will be Rs.22,282 crore.
Comment: Allocation for SC/ST scholarships enhanced from Rs.440
crore to Rs.611 crore.
Comment: Total Budget for the Northeastern region raised from Rs
12,041 crore to Rs 14,365 crore.
Scholarships programme for minorities students to be of
the order of Rs 72 crore for pre-metric, Rs 48 crore for
graduate and postgraduate.
Comment: Rs 63 crore for share capital for National Minorities
Development Finance Corporation following Sachar Committee
recommendations.
Allocation for SC/ST scholarships enhanced from Rs.440 crore to Rs.611 crore.
Allocation for schemes only for SCs and STs to be increased to Rs 3271 crore.
Computerisation of PDS and integrated computerisation programme for FCI.
Comment: Government concerned over inflation and would take all
steps for moderating it.
Allocation under Rajiv Gandhi Drinking Mission stepped up
from Rs 4680 crore to Rs 5850 crore.
Comment: Already a number of steps on fiscal, monetary and
supply management side have been taken.
Comment: Annual target of 15 lakh houses under Bharat Nirmal
Programme to be exceeded.
Comment: Allocation for National Rural Health Mission stepped up
from Rs 8207 crore to Rs 9947 crore.
Comment: Gross budgetary support in 2007-08 raised to Rs
2,05,100 crore from 1,72,728 crore in 2006-07. Of this,
budgetary support to the Central plan will go up to 1,54,939
crore against 1,72,728 crore.
Comment: School dropout rates high. To prevent dropout, a National
Means-cum-Merit scholarship to be implemented, with an
allocation of Rs 6,000 per child.
Comment: Rs 1290 crore to be provided for elimination of polio.
Intensive coverage will be undertaken in 20 districts in UP
and 10 districts in Bihar. This will be integrated into NRHM.
Comment: National AIDS Control Programme to achieve zero
level disease.
Comment: Rupee dips by 12.50 paise vs dollar in opening session
Comment: Measures for significant improvement of health care
in rural area.(
Comment: Allocation for ICDS programme to be increased from Rs
4087 crore to Rs 4761 crore.
Comment: 130 more districts under NREGA. Additional allocation of
Rs.12,000 crore for it.
Comment: Rs 800 crore for Sampoorna Gram Rozgar Yojana in
districts not covered by NREGA. Swarna Jayanti Swarozgar
Yojana allocation increased from Rs 250 crore to Rs 344 crore.
Comment: Government committed to fiscal reforms: FM.
Foreign exchange reserves stand at $180 billion : FM.
Allocation under Rajiv Gandhi Drinking Mission stepped up from Rs 4680 crore to Rs 5850 crore: FM.
Government concerned over inflation and would take all steps for moderating it: FM.
Already a number of steps on fiscal, monetary and supply management side have been taken: FM.
Comment: More allocation for schemes aimed at SCs and STs up at Rs 3271 crore.
Comment: Allocation to sanitation schemes to be increased to Rs 954 crore
Comment: Natianal Rural Employment Guarantee Scheme (NREGS) to be extended to more districts in India. The government also plans to increase jobs in rural areas with more allocation of funds.
Allocation for Urban employment to be increased.
Comment: Allocation on Healthcare to increase by 21.9 per cent.
Allocattion for education to be enhanced by 34.2 per cent.
Two lakh more teachers to be employed and five lakh more classrooms to be constructed.
Comment: Fam supply imbalances can upset growth, says FM.
Comment: Markets recover slightly: Sensex down 265 points at 13213.
NSE Nifty down 79 points at 3815.
Comment: Abhijit Sen Report on forward trading to be submitted in two months' time: FM.
Additional irrigation potential of 24 lakh hectares to be implemented, including nine lakh hectares under Accelerated Irrigation Benefit Programme: FM.
Economy in a stronger position than ever before.
15,054 villages have been covered under rural telephony and efforts to be made to complete the target of covering 20,000 villages by 2006-07: FM.
Comment: Farm growth at 2.3%, which is below 4% target of the 10th Plan.
Comment: Rs 3794 crore to be allocated for secondary school education.
To encourage students not to drop out, a national means-cum-merit scholarship to be instituted. Each student to be given Rs 6000 per year for studying in classes 9th, 10th and 11th and 12th.
Comment: Inflation during 2006-07 estimated at between 5.2 and 5.4
per cent against 4.4 per cent during the previous year.
No new forward contract to be launched on wheat and rice from today.
Comment: Allocation to school education to be increased by 35% to Rs 23142 crore: FM
Next year we will appoint 2 lakh more teachers, says FM.
Comment: Bank credit rate grew by 29 per cent during first ten
months of 2006-07: FM
Comment: Gross budgetary support to be increased to Rs 205,100 crore, says FM.
Comment: Revenues are buoyant for third year in successsion, says FM
Comment: Agriculture must top the agaenda of policy makers, says FM
Comment: Average inflation in FY'07 to be 5.2-5.4 per cent. We are confident of managing inflation, says Finance Minister P Chidambaram.
Comment: Saving rate of 32.4 per cent, investment rate of 33.8 per
cent will continue, says the finance minister.
A number of proposals to perk up agriculture to be
announced, says the finance minister.
Comment: The FM says:
Growth rate has improved to 9.27% in fiscal 07.
Average growth for last three years is 8.6 per cent.
Mfg growth rate over 11.6%
9th Plan target of growth rate nearly achieved.
Forward Markts Commission says that from today no new contracts will be launched in rice and wheat.
Comment: Agriculture has experienced sharp ups and downs. We need to boost agriculture and I will propose a number of measurse towards this goal: FM
Comment: GDP has grown to 9.2% says Chidambaram. Manufacturing is a major driver of growth. Services sector too booming, says the FM.
Comment: Finance Minister P Chidambaram begins Budget SPeech.
Comment: The Sensex, although it has recovered by over 200 points since its 518-point fall earlier, is still down by 312.23 points at 13,166.60 (-2.37%)
NSE down 93.35 points at 3,800.55 (-2.46%)
Comment: Finance Minister P Chidambaram set to rise to read his Budget Speech in about 5 minutes from now.
Comment: Finance Minister P Chidambaram will be presenting the Union Budget for 2007-08 in Parliament in a short while from now. He has already arrived in the Lok Sabha.
However, it remains to be seen if the belligerent Opposition political parties allow him to read out his Budget Speech in peace.
Comment: Sensex down 373.46 points at 13,105.37. (-2.85%)
NSE Nifty down 112.50 points at 3,781.40 (-2.98%)
Yet in this falling market there were some stocks that rose. The gainers on BSE include Abbott India Ltd, GlaxoSmithKline Consumer, Nirma Limited, Nestle India, Aventis Pharma Ltd.
While the biggest losers on BSE include Polaris Software, Geometric Soft, Steel Authority, Godrej Consumer Prod and ACC Ltd.
Comment: Stocks recover a bit more. Sensex is now down 330 points at 13149, while the NSE Nifty is down 97 points at 3797.
BSE: Advances 659; Declines 1973; Unchanged 55; Total Traded 2687; Advances/Declines Ratio 0.33
NSE: Advances 93; Declines 733; Unchanged 47; Total Traded 873; Advances/Declines Ratio 0.13
Comment: Stocks across-the-board still in the red. BSE Sensex down: 354 points at 13,125. NSE Nifty down 107 points at 3,787.
BSE: Advances 654, Declines 1981, Unchanged 50, Total Traded 2685
NSE: Advances 67, Declines 756, Unchanged 50, Total Traded 873
Comment: More on Budget:
How many Indian FMs went on to become PM?
Four. Morarji Desai, was twice the finance minister of India -- 1959-64 and 1967-70. He served as the prime minister from 1977 to 1979. Chaudhary Charan Singh became the prime minister in late 1979, having held the finance portfolio earlier the same year. V P Singh was finance minister from 1985 to 1987 and prime minister from 1989 to 1990. India's first prime minister (1947-64) Pt. Jawaharlal Nehru had also held the finance portfolio from 1958 to 1959. Indira Gandhi too held the finance portfolio from 1970 to 1971 while she was still the prime minister. Her tenure as PM was from 1966 to 1977 and again from 1980 to 1984. India's new prime minister Manmohan Singh also was the finance minister in the PV Narasimha Rao government.
Comment: More Budget rivia:
At what time were Indian Budgets presented earlier?
Earlier, Budgets were presented at 5 p.m. from 1924-1998. The timing was initially fixed keeping in mind the convenience of the House of Commons in London, which convened round that time. Yashwant Sinha, shifted the Budget speech to noon in 1999.
Comment: Sensex still down 457.72 points at 13,021.11, that is -3.52%. The NSE Nifty is down 111.65 at 3,782.25, that is -2.95%.
Comment: Some more Budget trivia:
The word Budget is derived from?
According to the Webster dictionary the word Budget was derived from the Middle English bowgette, which came from Middle French bougette, which in turn is a diminutive of bouge, meaning a leather bag.
Comment: While we keep you updated on the markets and the Budget, here’s some Budget trivia:
Where are the Budget papers printed?
The finance ministry has its own press in the basement of the building. It employs 30 employees who, during the week before the Budget, stay in the ministry itself and have no means of communicating with the outside world.
Comment: The Indian stock markets have pulled back a bit from the free fall they experienced when the market opened. The Sensex is now down 448 points at 13,021. The NSE Nifty is down 140 points at 3,754.
Comment: To get Budget updates on your mobile phone, SMS BUD to 7333.
Comment: Experts say this is a good opportunity for investors to get into the market, while FIIs warn investors to stay away from the markets!
Comment: The Sensex has plummeted by 552 points at 12,927 due to the fall in the Chinese and US markets, and also on Budget fears.
Comment: Please join us at 10.30 a.m. for LIVE commentary on the Union Budget 2007-08, as we bring to you Finance Minister P Chidambaram's Budget proposals even as he reads them out in the Lok Sabha.
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