Budget 2008 - Great Expectations

Incentives for mass housing; Home-loanlrelated benefits; Clarity on taxation of REITs

NA

Export duty hikes for iron-ore; Changes to duties for the steel sector

Extension of STP tax holiday

Rationalisation of tax regime; Annual licence fee reduction; Tax holiday for start-ups

Removal of service tax on construction of residential units; Increase in tax relief on repayment of housing loans; Restoring exemption under 80IB

Tax exemption on infrastructure financing (Reintroduce Section 10 (23G); Farm loans write-offs & interest subsidy on farm loans

Excise duty cut on steel from 16% currently; Cut in customs duty on coke from 5% currently; Ad valorem export taxes on iron-ore

NA

Reduction in licence fee to a uniform 6% of adjusted revenues across all telecom services and circles

Exempt rental income from houses below 150 sq metres from income and service tax; Rationalise dividend distribution tax which impacts real estate funds; Introduction of value added stamp duty (VAS)

Hike in FDI/FII limit for PSU banks from 20% to 26%; Reintroduction of tax concession on interest earned on infrastructure loans u/s 10(23G); Sops to enable infra finance cos to raise funds at cheaper rates, eg tax-exempt bonds

Reduction in excise duty on steel products; Govt expected to hike customs duty on stainless steel products;
Govt expected to reduce customs duty on stainless steel raw materials like nickel

Continued focus on e-governance through strong allocation; Selective extension of the STPI scheme beyond March 31, 2009; No change in FBT on ESOPs

Consolidating levy structure faced by the industry into a single levy at a reduced rate ; Abolition of service tax on lease or rentals of immovable property used for commercial purposes

More clarity on taxation of REITs; Taxation benefits to be extended for units set up under Software Technology Parks scheme beyond current sunset clause (end FY09)

Subvention to banks for lending to agriculture may continue; I-T benefits for write-offs may be made in line with RBI���s asset recognition rules; Exemption u/s 36(I)(vii) may be abolished

Increase in export tax on iron-ore; Excise duty cut on finished steel to 12% from 16% currently; Increase in royalty on iron-ore from current low rate RS 27 per ton to a higher ad valorem level

Extension of tax benefits for units set up under Software Technology Parks Scheme beyond the current expiry date under the sunset clause (end FY09)

Simplification of the taxation/levy structure and reduction in some of the levies (licence fee, spectrum charges)