union budget 2007

8/7/2019 Union Budget 2007

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UNION BUDGET 2007UNION BUDGET 2007--0808

UPDATEUPDATE Personal TaxPersonal Tax

LTCG exemption to continue this yearLTCG exemption to continue this year

Capital gains bond to continueCapital gains bond to continue Income tax exemption hiked by Rs 10,000Income tax exemption hiked by Rs 10,000

1.1 lakh for men1.1 lakh for men

1.45 lakh for Women1.45 lakh for Women

1.95 lakh for senior citizen1.95 lakh for senior citizen

Exemption limit on medical insurance premiumExemption limit on medical insurance premiumincreased to Rs 15,000.increased to Rs 15,000.

Exemption limit on medical insurance premium forExemption limit on medical insurance premium forsenior citizens increased to Rs 20,000.senior citizens increased to Rs 20,000.


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Corporate TaxCorporate Tax

Exemptions cut for exportExemptions cut for export--oriented enterprisesoriented enterprises

such as software outsourcing firms, by askingsuch as software outsourcing firms, by asking

them to pay mininum alternate tax (MAT) onthem to pay mininum alternate tax (MAT) on

income.income.

Dividend distribution tax raised to 15 percentDividend distribution tax raised to 15 percent


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Stock MarketStock Market

Make PAN the sole identification number for all participants inMake PAN the sole identification number for all participants inthe securities market with an alphathe securities market with an alpha--numeric prefix or suffix tonumeric prefix or suffix todistinguish a particular kind of account;distinguish a particular kind of account;

promote the flow of investment to the infrastructure sector by promote the flow of investment to the infrastructure sector bypermitting mutual funds to launch and operate dedicatedpermitting mutual funds to launch and operate dedicatedinfrastructure funds;infrastructure funds;

converge the different regulations that allow individuals and converge the different regulations that allow individuals and

Indian mutual funds to invest in overseas securities byIndian mutual funds to invest in overseas securities bypermitting individuals to invest through Indian mutual funds;permitting individuals to invest through Indian mutual funds;

allow short selling settled by delivery, and securities lending allow short selling settled by delivery, and securities lendingand borrowing to facilitate delivery, by institutionsand borrowing to facilitate delivery, by institutions


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Affected items after the UnionAffected items after the Union

Budget 2007Budget 2007--0808Cheaper Expensivey Biscuits y Cigarettes

y Plywood y Bidis

y Coal y Pan masala with tobacco

y Food for pets y Personal aircraft/chopper

y Chemicals and plastics y Cement

y Mouth freshner

y Umbrellas, footwear

y Steel

y Bio-diesel

y Medical equipment

y Irrigation equipment

y Clothes

y Water purification devices


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Fertiliser SubsidiesFertiliser Subsidies

The finance minister had budgeted Rs.17,253The finance minister had budgeted Rs.17,253

crore for fertiliser subsidies in 2006crore for fertiliser subsidies in 2006--07.07.

According to Revised Estimates, this will riseAccording to Revised Estimates, this will rise

to Rs.22,452 crore, and there is a demand forto Rs.22,452 crore, and there is a demand for

more money.more money.


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National Bank for AgricultureNational Bank for Agriculture

and Rural Developmentand Rural Development

(NABARD)(NABARD) NABARDNABARD providesprovides refinancerefinance toto cooperativecooperative

institutionsinstitutions.. AsAs thethe volumevolume ofof farmfarm creditcredit

increasesincreases andand thethe VaidyanathanVaidyanathan CommitteeCommittee

recommendationsrecommendations forfor reformreform ofof ruralrural creditcredit

cooperativescooperatives areare implemented,implemented, thethe demanddemand forfor

refinancerefinance willwill increaseincrease..


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Rural Infrastructure DevelopmentRural Infrastructure Development

FundFund

TheThe RuralRural InfrastructureInfrastructure DevelopmentDevelopment FundFund

(RIDF)(RIDF) continuescontinues toto sanctionsanction andand disbursedisburse

fundsfunds toto StateState GovernmentsGovernments.. TheThe financefinance

ministerminister hashas proposedproposed toto raiseraise thethe corpuscorpus ofof

RIDFRIDF--XIIIXIII inin 20072007--0808 toto RsRs..1212,,000000 crorecrore.. II

wouldwould urgeurge StateState GovernmentsGovernments toto useuse thesethesefundsfunds primarilyprimarily inin thethe distresseddistressed districtsdistricts ofof thethe

StateState..


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Social SecuritySocial Security

TheThe financefinance ministerminister hashas proposedproposed toto

extendextend deathdeath andand disabilitydisability insuranceinsurance covercover

throughthrough LifeLife InsuranceInsurance CorporationCorporation ofof IndiaIndia

(LIC)(LIC) toto ruralrural landlesslandless householdshouseholds underunder aa newnew

schemescheme calledcalled 'Aam'Aam AdmiAdmi BimaBima Yojana'Yojana'

(AABY)(AABY)..


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Income and SavingsIncome and Savings

To continue with the report card, per capitaTo continue with the report card, per capita

income in 2005income in 2005--06, in real terms, increased by06, in real terms, increased by

7.4 per cent, and the savings rate has been7.4 per cent, and the savings rate has been

estimated at 32.4 per cent and the investmentestimated at 32.4 per cent and the investment

rate at 33.8 percentrate at 33.8 percent


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Plantation SectorPlantation Sector

A Special Purpose Tea Fund has been launchedA Special Purpose Tea Fund has been launchedfor refor re--plantation of tea. Government will soon put inplantation of tea. Government will soon put inplace similar financial mechanisms for coffee, rubber,place similar financial mechanisms for coffee, rubber,spices, cashew and coconut.spices, cashew and coconut.

Depletion of ground water has assumed graveDepletion of ground water has assumed graveproportions. The Central Ground Water Board hasproportions. The Central Ground Water Board hasidentified 1,065 assessment blocks in the country asidentified 1,065 assessment blocks in the country as'over'over--exploited' or 'critical'. Over 80 per cent of theseexploited' or 'critical'. Over 80 per cent of theseblocks are in 100 districts in seven States. Theblocks are in 100 districts in seven States. Thestrategy for ground water recharge is to divert rainstrategy for ground water recharge is to divert rainwater into 'dug wells'.water into 'dug wells'.


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INFRASTRUCTUREINFRASTRUCTURE

Public Private Partnership and Viability GapPublic Private Partnership and Viability Gap

FundingFunding

The Public Private Partnership (PPP) modelThe Public Private Partnership (PPP) model

has enabled greater private sector participationhas enabled greater private sector participation

in the creation and maintenance ofin the creation and maintenance ofinfrastructure.infrastructure.


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Tourism DepartmentTourism Department

The finance minister has proposed to increaseThe finance minister has proposed to increase

the provision for building tourist infrastructurethe provision for building tourist infrastructure

from Rs.423 crore in 2006from Rs.423 crore in 2006--07 to Rs.520 crore07 to Rs.520 crore

in 2007in 2007--08.08.


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FINANCIAL SECTORFINANCIAL SECTOR

BankingBanking

The Differential Rate of Interest (DRI) schemeThe Differential Rate of Interest (DRI) scheme

provides finance at a rate of 4 per cent to the weakerprovides finance at a rate of 4 per cent to the weakersections of the community engaged in gainfulsections of the community engaged in gainful

occupations.occupations.

InsuranceInsurance

On December 6, 2006, Rashtrapatiji launched anOn December 6, 2006, Rashtrapatiji launched an

exclusive health insurance scheme for senior citizensexclusive health insurance scheme for senior citizens

offered by National Insurance Company.offered by National Insurance Company.


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Defence ExpenditureDefence Expenditure

The finance minister has proposed to increaseThe finance minister has proposed to increase

the allocation for Defence to Rs.96,000 crore.the allocation for Defence to Rs.96,000 crore.

This will include Rs.41,922 crore for capitalThis will include Rs.41,922 crore for capital

expenditure. Needless to say, any additionalexpenditure. Needless to say, any additional

requirement for the security of the nation willrequirement for the security of the nation will

be providedbe provided


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Information TechnologyInformation Technology

Government has launched an ambitiousGovernment has launched an ambitious

programme for eprogramme for e--governance. The goal is togovernance. The goal is to

improve efficiency, convenience, accessibilityimprove efficiency, convenience, accessibility

and transparency in Government functions andand transparency in Government functions and

take Government services to the commontake Government services to the common

citizencitizen


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Vocational Education MissionVocational Education Mission

To sustain a high level of economicTo sustain a high level of economic

growth, it is essential to have a reservoir ofgrowth, it is essential to have a reservoir of

skilled and trained manpower. Shortages haveskilled and trained manpower. Shortages have

already emerged in a number of sectors.already emerged in a number of sectors.


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Thank You

union budget 2007

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