The General Budget 2007-08 presented by the Finance Minister today has come up with following important highlights.
Reduction of duties on petrol and diesel:
Keeping in view the inflationary condition of the country, the general budget 2007-08 has come up with reducing duties on the diesel and the petroleum products. The current step is expected to find out the solution of fast rising prices level in the country by making rural poors as the alternative beneficiaries.
Stalemate continues In Direct Rates:
With regards to direct taxation, a stalemate continues in tax rates in the country as to the General Budget 2007-08. The thresh hold limits for the income individual tax payers have increased by a sum of Rs 10,000. For women the threshold limit increased to Rs. 1,45,000 and for senior citizens it is at Rs. 1,95,000.
On the other hands for the companies having a taxable income of Rs. 1 crore or less, will not have to pay surcharge on income tax.
Rising Dividend distribution tax:
The dividend distribution tax in the country increased from 12.5% to 15% in the budget 2007-08. The mutual funds in the money market will come under 25% Dividend Distribution Tax.
Fringe Benefit Tax:
The scope of the Fringe Benefit Taxes is expanded in the budget 2007-08.
No Change In Services Taxes:
In the budget 2007-08, a no change condition is being marked in the Services tax rate. On the other hand the services tax nets are being widened in this budget. The new areas coming under services tax nets are as follows:
- Mining and minerals,
- Oil and gas,
- Design services,
- Development and supply of content used in advertising purposes
- And renting of immovable property for commercial purpose
National Rural Employment Guarantee Scheme:
The National Rural Employment Guarantee Scheme will be extended to 330 districts from the current levels of 200 districts. The total budget allocation is Rs. 12,000 crore for this scheme.
Aam Admi Bima Yojna:
The Finance Minister declared the Aam Admi Bima Yojna for bringing the unorganised landless households under insurance safety net.