BUDGET DISCUSSION

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CA. GOPAL SONIKA (Querist)
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29 February 2008 Dear all
Should we not have a discussion on the budget 2008-2009.
How was the budget 2008-2009. Give justifications to your answer.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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29 February 2008 Certaily.

An antcipated populst budget (write off of farm loans and raising of basic non-taxble limit) before elections next year. Therefore no surprises.

The FM is banking on tax collection improvement to realise his proposals to succeed.

The excise duty reductions may give a fillip to otherwise slowing down economy.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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29 February 2008 AS FAR AS SHARE MARKET IS CONCERNED SLIGHTLY A NEGATIVE IMPACT BY RAISING STCG TO 15%. AS IT WAS EARLIER PREDICTED THAT DUE TO UPCOMING ELECTIONS THERE MAY BE SOME CHANGE IN TAX SLABS AND IT HAPPENED.POLITICAL BUDGET BY WAIVING FARMERS LOANS. TO INCREASE COLLECTIONS BY CHARGING COMMODITY TRANSACTION TAX IN COMMODITIES

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R.V.RAO

R.V.RAO (Expert)
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29 February 2008 THREE CHEERS TO MR. P. CHIDAMBARAM, FOR THE MERCY SHOWN ON NON CORP. IT ASSESSEES.
VERY INTERESTING AND HELPFUL ARE MEASURES LIKE SENIOR CITIZEN IT EXEMPTION LIMIT UP TO RS. 2.25 LAKHS AND WOMEN UP TO RS. 1.8 LAKHS.
UPPING OF PERSONAL IT EXEMPTION SLAB UPTO RS. 1.5 LAKHS AND 10% TAX FOR UP TO RS. 3 LAKHS AND 20 % TAX UP TO RS. 5 LAKHS AND 30 % TAX BEYOND RS. 5 LAKHS ARE REALLY AWAITED FOR LONG AND THANKS TO NEXT GEN .ELECTIONS.
80 D DEDUCTION UP BY RS. 15OOO FOR DEPENDENT PARENTS ETC..very useful.
SHOTRT TERM CAPITAL GAINS TAX UP BY 5% ,.THIS IS A SETBACK TO OUR FRIENDS WHO PLAY SHARE MARKER .
SERVICE TAX EXEMPTION LIMIT UP BY RS. 2 LAKHS FROM PRESENT RS 8 TO NOW RS. 10 LAKHS. GOOD. FOR SMALL SERV. PROVIDERS.
a few more areas added under serv. tax .

CST CUT FROM 3 TO 2% .THIS WAS EXPECTED.

CENVAT AND CUSTOMS DUTY REDUCTION AS ALSO CENTRAL EXCISE DUTY REDUCTION GO LONG WAY FOR BOOST TO INDUSTRY .
SMALL CAR EXCISE CUT BY 4 % IS GOOD FOR MIDDLE CLASS.
REVERSE MORTGAGE NOT BEING TREATED AS TRANSFER AND THE INCOME NOT TAXED SHOW OUR CONCERN FOR THE AGED.
DEBT WAIVER FOR AGRI. LOANS HAS MIXED REACTIONS. BANKS AND BANK SHARES REACTED NEGATIVELY. BUT FARMERS ARE HAPPY.
8.8% GDP EXPECTATION IS GOOD.
IMPROVED SPENDING ON INFRASTRUCTURE AUGURS WELL FOR ECONOMY AND RURAL EMPLOYMENT.
STT AND DDT UNCHANGED IS WELL TAKEN BY ALL .
WITHDRAWAL OF BANKING CASH TRAN. TAX IS EXCEELENT MEASURE. BUT WE NEED TO WATCH HOW TO UNEARTH BLACK MONEY.
OVERALL THOUGH APPERS AS PROELECTION AND POPULIST, THE BUDGET ANSWERS LONG AWAITED PRAYERS OF NON- CORP. ASSESSEES TO A GREAT EXTENT.
A BIT OF DISAPPOINTMENT IS SOME COMPLICATED TAX AND LEGAL ISSUES LIKE TRANSFER PRICING, HAVE NOT BEEN ADDRESSED.
INFLATION CHECK , I DONT KNOW HOW THE GOVT. PLANS TO TACKLE, AS ALU,ONOIN,TOMATOS ETC.. AND GRAINS AND PULSES ARE COSTING A LOT MORE NOW A DAYS.BUT THEN WHO CARES FOR THE POOREST OF THE POOR.
"COMETS ARE SEEN WHEN PRINCES' DIE AND NOT EVEN STARS ARE SEEN WHEN BEGGARS DIE".
R.V.RAO

Amarjeet Singh

Amarjeet Singh (Expert)
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29 February 2008 It is really a good budget for common man.But increase in the tax rate of short term capital gain can create problem for the capital markets as seen from today's movement of the market. By waiveing the agricultural loan liability Finance Minister really showed his kind heart.To allow the STT as a business expenditure will also help to encourage the capital markets .It would be better if govt. would also ensure the effective and proper utilisation of collection of all taxes.Overall UPA Govt is doing well.