Budget 2007 highlights

Since the Budget was announced recently, let me paste some highlights…

INDIRECT TAXES
· CST rate will be reduced from 4% to 3%
· No change in service tax and excise rates
· No change in CENVAT rate
· R&D tax concessions extended to Pvt Research bodies
· 1 per cent cess hike to fund higher education
· Corporate Tax surcharge scrapped for SMEs
· Dividend distribution tax to be hiked to 15%
· Excise duty Increased on Cigarettes & Beedis,
· Excise Duty Cut on Cement from Rs. 400 to 350/Ton
· Excise duty for plywood reduced to 8%
· Gas-pipelines to get 10 year tax holiday
· Duty on pet food reduced to 20%
· Duty on sunflower oil to be reduced by 15%
· Customs duty on polyster to be reduced to 7.5%
· Service tax extended to commercial renters (ICPL rentals will increase)
· No change in corporate income tax
· Mouth fresheners to be cheaper, excise duties slashed to 40%

DIRECT TAXES
· Income Tax exemption limit to women hiked to Rs 1,45,000
· Personal income tax exemption limit raised to Rs 1,10,000
· Personal Tax exemption for senior citizens hiked to Rs 1,95,000

GENERAL:
· 5-yr tax holiday for four and five star hotels to be constructed for Commonwealth Games in the NCR
· Scope of MAT widened to I-T Cos.
· Cash transactions up to Rs 50,000 exempted from levy.
· No attempt to check staff absenteeism in public sector
· Overseas investments by individuals to be allowed via MFs
· SENSES down by over 400 pts after Budget proposal
· Forex reserves at $180-bn