Union Budget Highlights - 2008.

1. Dividend Distribution Tax unchanged at 15%.
2. Central Sales Tax cut to 2% from 3% - Positive for Food Processing companies.
3. India to start GST from April 1, 2010.
4. No Change in STT Rates.
5. To withdraw banking cash transaction tax from April 1, 2009.
6. To give 5 Year Tax Holiday for Hotels in some areas.
7. Increase in short term capital gain tax from 10% to 15%.
8. On an income of Rs5 lakhs - savings amount to Rs45,000.
9. To grant 5 year tax holiday for new hospitals to be setup in specified areas - +ve for Apollo Hospital, Fortis etc.
10. Weighted deduction of 125% for R&D – Buy on Ranbaxy Labs and Dr Reddy Labs.
11. Major Income tax Changes - to boost consumer spending Buy Marico and GSK Consumer.
12. No change in corporate tax rate and no change even in surcharge.
13. In case of Women, Exemption limit increased to Rs1,80,000.
14. Senior citizen exemption raised from 1,95,000 to 2,25,000.
15. Proposes to increase personal income tax exemption limit to Rs1,50,000.
16. Minimum relief Rs4000 for every assesse.
17. Excise duty on bulk cement imposed at Rs400/tonne or 14% Ad valorem whichever is higher - Neutral for Cement companies .
18. Customised software under service tax net.
19. Higher excise on packaged software (8% to 12%) - Negative for Software sector.
20. To tax Filter and Non Filter Cigarettes on Par - Marginally negative for ITC.
21. Fall in duty on wireless data cords from 16% to Nil - Positive for Telecom Sector.
22. No change in excise duty structure on Retail Cement.
23. To cut excise duty on all goods in Pharma from 16% to 8% - Positive for Pharma Sector.
24. To cut excise on some papers, paper products.
25. To reduce excise duty on two wheelers from 16% to 12% Buy Bajaj Auto.
26. To reduce excise duty on small cars from 16% to 12% Buy Maruti and Tata Motors.
27. To reduce General CENVAT rate from 16% to 14%.
28. To cut customs duty on crude, unrefined sulphur.
29. To cut project import duty to 5% from 7.5%.
30. Custom Duty reduced to Nil on Steel melting scrap from 5% - Positive for Non Integrated Steel Players .
31. India to cut duty on certan bulk drugs to 5% - Positive for Pharma Sector.
32. Proposes No Change in Peak Customs Duty.
33. Current Tax-GDP ratio at 12.5.
34. Fiscal Deficit to be 2.5% by FY09 - Need only 1 year to eliminate Revenue Deficit.
35. Revenue Deficit to be 1.4% and Fiscal Deficit to be 3.1% of GDP.
36. Planned Expenditure about 34.2% of total expenditure.
37. India to spend Rs 1.05Trn on Defense sector, up 10% - Positive for Defense Companies.
38. Allocation for TUF loan hiked about 20% - +ve for Textile Sector.
39. Thrust on Smart Cards Buy on Bartronics India.
40. Accelerating bidding process for 5 UMPPs - +ve for PFC.
41. Likelky Subvention of agri loans waivers to neutralise impact on banks.
42. Government allocates RS16.8bn for IT Sector Buy on 3i Infotech and TCS.
43. India to spend more on Textile Sector - Buy on Bombay Dyeing and Alok Ind.
44. India to get as much as $8bn from latest Gas, Oil.
45. India to allocate Rs129 bn for highways Buy on HCC,IVRCL.
46. National Fund for Power Transmission and Distribution.
47. To award 4th UMPP shortly - +ve for Power.
48. India to achive power expansion target in 11th plan - +ve for Companies like BHEL.
49. Waiver of previous loans and fresh loans - Positive for Agriculture/ Fertiliser companies .
50. India to spend more on Rural Development and Roads - Positive for Infrastructure sector.
51. Manufacturing slowdown due to rising rates and rupee.
52. Growth in capital goods still high at 20.2%.
53. Savings Rate at 35.6% and Investment Rate at 36.3% by end of 2008.
54. Total value of overdue loans including OTS at Rs60,000cr.
55. Debt Waiver to be completed by June 30 2008 - Farmers to be eligible for fresh loans post waiver.
56. Clarity awaited on details of scheme regarding reimbursement to banks of waiver amounts
    Waiver Amounts to 4% of Total Bank.
57. Scheme of debt waiver of all agri loans upto March 2007 - Negative for Banking Sector.
58. FM eyeing Elections - Slew of populist measures announced.
59. Complete waiver of loans for marginal and small farmers.
60. Government introduces scheme for debt waivers for.
61. FM says fertiliser subsidy to continue.
62. 5 lac hectare increased irrigation potential.
63. India to spend Rs200bn on irrigation-Positive for Finolex Ind and Jain Irrigation.
64. Government to spend additional Rs120bn on 5-Yr plan programs.
65. Government increases thrust on santitation - s Buy Electrosteel Castings.
66. Increase in sanitation allocation positive for DI pipe makers such as Electrosteel castings.
67. Increased allocation to Rajiv Gandhi Drinking water scheme to Rs7300cr from Rs6500cr, beneficial to companies like IVRCL.
68. Increased spending on polio to benefit Panacea Biotech.
69. India to spend Rs120bn on National Rural Health Plan.
70. Education and Health Sector to be twin pillars of growth.
71. 16,534cr allocated for Health Sector an increase of about 15%.
72. Additional allocation for education beneficial for Everonn, Educomp, Core Projects, NIIT etc.
73. India to increase spending on Bharat Nirman plan.
74. Allocation for education to be raised to Rs34,400cr from Rs28,674cr.
75. Allocation for education to be increased by 20%.
76. India to increase Gross Budgetary support in FY09.
77. Agriculture estimates to grow at 2.6% for FY08.
78. FM confident of maintaining 8.8% GDP growth average.
79. FM says agri growth disappointing.