India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Showing posts with label Pre Budget. Show all posts
Showing posts with label Pre Budget. Show all posts
Thursday, March 08, 2012
Saturday, June 27, 2009
Tuesday, June 23, 2009
Wednesday, February 27, 2008
Monday, February 25, 2008
Friday, February 22, 2008
Thursday, February 21, 2008
Pre Budget - Income Tax payers may get relief
Income Tax payers are likely to get a major relief in the budget 2008-09, as the government prepares itself to please the middle class in the election year.
Finance Minister P Chidambaram can give a marginal but visible relief to personal income tax assesses this year, as tax collections have substantially improved over the past three years, sources said.
With buoyant tax collections in 2007-08, there is significant pressure on Chidambaram to reduce the effective rates. The minister himself has acknowledged that with better tax compliance, there could be a case for cut in rates.
The minimum income threshold limit for income tax payer could be raised from Rs 1,10,000 to Rs 1,25,000 or Rs 1,30,000, sources said.
Similarly, the income threshold for 30 per cent tax rate could be raised from the current Rs 2,50,000 per annum, sources said, adding that this had been kept constant since fiscal year 2005-06.
Tax payers would get a relief of Rs 1,500 to Rs 2,000 even if the Finance Minister decides to raise the minimum income threshold limit of income tax by Rs 15,000 to Rs 20,000 to offset the impact of inflation and submission of sixth pay commission report later this year.
An announcement on the new income tax code is also expected in the budget.
The Finance Minister had earlier said that the code, aimed at simplifying the tax laws, would be put for public comments shortly.
Pre Budget - Cut excise duties to boost manufacturing
Concerned over the slump in industrial production and to maintain inflation around 4 per cent, the government is likely to provide relief to the manufacturing sector by marginally cutting excise duty rates or sector-specific duties in the budget 2008-09.
Finance Minister P Chidambaram may announce cut in excise duty rates across the board from 16 per cent to 14 per cent or sector-specific duty cuts in the budget to be presented on February 29, official sources said.
Sectors like pharmaceutical, textile machinery, food processing, paper and auto including two wheelers, tyres are expected to get relief in excise duty, but like last year Chidambaram could also prune excise duty exemptions to maintain revenue collections, sources said.
According to Finance Ministry, due to various excise duty exemptions the estimated revenue foregone touched Rs 99,690 crore in 2006-07 as against Rs 66,760 crore in the previous year. It includes area-specific tax exemptions of Rs 7,000 crore in 2006-07.
With the approval of over 400 special economic zones, the revenue-foregone figures could be much higher for 2007-08, although some tax exemptions were withdrawn in the last budget.
Finance Minister had earlier said that tax exemptions would have to go in a phased manner. While commenting on the fall in industrial production till November, he indicated that the government could take steps to boost consumption and investment to sustain the GDP growth close to 9 per cent.
The growth rate for manufacturing sector declined to 9.6 per cent in the first nine months till December for 2007-08 from 12.2 per cent in the previous fiscal.
Prime Ministers economic advisory council chairman C Rangarajan has also favoured cut in excise duty especially on consumer durables to spur economic growth. The government expects that manufacturers might pass on cut in duties to consumers, thus dampening inflation.
Sources said there is a strong likelihood that the oil sector may also get a relief of at least re one a liter in excise duty on petrol and diesel besides downward revision of customs duty to compensate oil marketing companies selling subsidised oil products.
The government is also worried about the impact of fall in growth in high-employment sectors like textile and food processing.
Sources said the textile sector, which is estimated to order Rs 1,00,000 crore-worth machinery over the next 5 years, might also get a relief in excise duties especially on machinery.
Some sectors like packaged drinking water, which attract 16 per cent excise duty are also expecting downward revision of central levy to eight per cent.
Meanwhile, industrial chambers like FICCI have asked the Finance Minister to bring down excise duty rate of 16 per cent to 12 per cent in two years as part of its commitment to implement Goods and Services Tax (GST) with effect from April 1, 2010.
Wednesday, February 20, 2008
Tuesday, February 19, 2008
Saturday, February 16, 2008
Monday, February 26, 2007
Friday, February 23, 2007
Thursday, February 22, 2007
Wednesday, February 21, 2007
Tax exemption likely for savings up to Rs 1.50 lakh
With the government exploring various options to attract long-term funds for infrastructure, savings in certain categories up to Rs 1,30,000-1,50,000 a year may qualify for income tax exemption in the coming Budget against Rs 1,00,000 currently.
Over and above Rs 1,00,000, income tax exemption might be given for another Rs 30,000-50,000, especially for infrastructure, sources told PTI. Or alternatively, there might be consolidated savings limit of Rs 1,30,000-1,50,000 they said.
The finance ministry might also go for raising zero income tax slab to Rs 1,50,000 against the current level of Rs 1,00,000, they said.
The Ministry is looking at these three options and one of them may figure in the Budget, the sources said. However, the possibility of raising the income tax slab to Rs 1,50,000 is remote, they said.
In the Budget 2005-06, Finance Minister P Chidambaram raised the savings limit to Rs 1,00,000, which would qualify for income tax exemption under Section 80 C.
The Section provides for tax exemption for investments like insurance premia, contributions to provident fund or schemes for deferred annuities, purchase of infrastructure bonds, payment of tuition fees, repayment of principal amount of housing loans.
This fiscal's budget extended these benefits to fixed deposits of five years of maturity in banks. Banks are demanding that this benefit now be extended to three years of deposits as well.
Infrastructure development requires a whopping $320 billion in the next five years. The finance ministry is evaluating various options to attract funds for infrastructure.
Recently, US-based Citi Group and Blackstone have joined hands with infrastructure finance companies--IDFC and IFCL to raise long term funds for infrastructure.
So far as the slabs are concerned, currently, income up to Rs 1,00,000 does not attract any tax with Rs 1,00,000-1,50,000 drawing tax at the rate of 10 per cent.
Income from Rs 1,50,000 -2,50,000 attract 20 per cent income tax and 30 per cent above Rs 2,50,000. Besides, there is surcharge of 10 per cent on Rs 10 lakh taxable income.
For women, income up to Rs 1,35,000 does not attract income tax and Rs 1,35,000-1,50,000 draws 10 per cent tax rate. Above this level, the tax rates are same as that for men.
Senior citizens get tax exemption up to Rs 1,85,000 and do not have 10 per cent tax slab. There is also likelihood that the Budget 2007-08 would lower the age for senior citizens from 65 years to 60 years, the sources added
Subscribe to:
Posts (Atom)