New Delhi, Feb 28 (UNI) While leaving unaltered rates of personal Income Tax, Finance Minister P Chidambaram in his Budget 2007-08 today hiked the threshold limit of exemption in case of all assessees, eliminated Income Tax surcharge on smaller firms, gave sops to small scale industry and small service providers, duty reductions on host of consumer goods and substantially hiked allocations for agriculture and social sectors.
In a budget directed at 'Aam Aadmi' but lacking in substantial reform measures, Mr Chidambaram gave relief of Rs 1,000 to all assessees, including women, by hiking the exemption limit.
The threshold limit of exemption in case of all assessees has been increased by Rs 10,000 and consequently in case of women assessees this limit has been increased from Rs 1,35,000 to Rs 1,45,000, also giving the fair sex a relief of Rs 1,000.
In the case of senior citizens, the threshold limit has been hiked from Rs 1,85,000 to Rs 1,95,000, a relief of Rs 2,000.
But, Mr Chidambaram disappointed the tax payers by levying an additional one per cent cess to fund secondary and higher education.
The excise duty exemption for small scale industry has been increased from Rs 1 crore to Rs 1.5 crore and service tax exemption to small service providers increased from Rs 4,00,000 to Rs 8,00,000. However, service tax has been extended to new areas.
The defence outlay has been increased to Rs 96,000 crore, which would include Rs 41,922 crore for the capital expenditure.
Mr Chidambaram gave an assurance that he would not hesitate to give any additional requirement for meeting the security of the nation.
In another relief to the small tax payer, the Finance Minister enhanced deduction in respect of medical insurance premium under section 80D to a maximum of Rs 15,000 and in the case of senior citizen, a maximum of Rs 20,000.
Cigarettes will now be costlier, but edible oils, pan masala without tobacco content or mouth freshners will become cheaper as also cement, plastic goods, chemicals and cut diamonds.
The other items which will now cost less include drip irrigation equipment, polyester fibre yarn, agricultural fountains and food processing machinery.
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In a budget directed at 'Aam Aadmi' but lacking in substantial reform measures, Mr Chidambaram gave relief of Rs 1,000 to all assessees, including women, by hiking the exemption limit.
The threshold limit of exemption in case of all assessees has been increased by Rs 10,000 and consequently in case of women assessees this limit has been increased from Rs 1,35,000 to Rs 1,45,000, also giving the fair sex a relief of Rs 1,000.
In the case of senior citizens, the threshold limit has been hiked from Rs 1,85,000 to Rs 1,95,000, a relief of Rs 2,000.
But, Mr Chidambaram disappointed the tax payers by levying an additional one per cent cess to fund secondary and higher education.
The excise duty exemption for small scale industry has been increased from Rs 1 crore to Rs 1.5 crore and service tax exemption to small service providers increased from Rs 4,00,000 to Rs 8,00,000. However, service tax has been extended to new areas.
The defence outlay has been increased to Rs 96,000 crore, which would include Rs 41,922 crore for the capital expenditure.
Mr Chidambaram gave an assurance that he would not hesitate to give any additional requirement for meeting the security of the nation.
In another relief to the small tax payer, the Finance Minister enhanced deduction in respect of medical insurance premium under section 80D to a maximum of Rs 15,000 and in the case of senior citizen, a maximum of Rs 20,000.
Cigarettes will now be costlier, but edible oils, pan masala without tobacco content or mouth freshners will become cheaper as also cement, plastic goods, chemicals and cut diamonds.
The other items which will now cost less include drip irrigation equipment, polyester fibre yarn, agricultural fountains and food processing machinery.
MORE UNI
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