Small Cars cheaper, two wheelers & three wheelers cheaper but cigarettes got dearer

Finance Minister P Chidambaram has given lots of cheers on faces of normal indian citizen, by cutting excise duties on hybrid cars, on bus chassis, two- and three-wheelers from 16 percent to 12 percent.

Also in the case of hybrid cars, excise duty has been brought down to 14 percent from the current 24 percent, a drastic cut of 10 per cent.

Companies like TVS Motor, Bajaj Auto, Hero Honda, Kinetic, Yamaha and Piaggio would be the gainers.

Tata motors has got the benefit on its small wonder car Nano as it may become more cheaper and easily affordable to anyone.

But some things have been made more costlier such as :

Excise on packaged software to go up from 8% to 12%, no excise duty on refrigerating equipments and duty on non filter cigarettes to be raised, so guys your smoking habits going to cost you more.

Major Highlights on Indian Budget 2008, One click to know the latest benefits of Budget 2008

The major highlights of the Union Budget 2008 are as follows:

The growth rate of the economy has been 8.8%
• Service sector is the key player and expected to grow at 10.7 %
• Total food grain output has been 219.32 tonnes; all time high
• Education at the center of the social sector reforms
• Rs. 34,400 crores to be allocated for education
• Rs, 13,100 crores to be allocated for Sarva Shiksha Abhiyaan
• Rs. 8,000 crores allocated for Mid-Day Meal Program
• 6,000 model high schools to come up
• 16 central universities to be established
• 3 IITs to be set up in Bihar, Rajasthan and Andhra Pradesh
• Rs. 85 crores allocated for the development of a knowledge society
• All knowledge bodies to be linked through broadband
• Scholarships to encourage science and research
• 3 IIScs to be set up in Trivandrum and Bhopal
• Rs. 4,554 crores to be allocated for Secondary Education Scheme
• Allocation for National Rural Health Mission increased by 15%
• LIC coverage for all women regulated Self-help Groups attached to banks
• Rs. 12,050 crores to strengthen health services in rural area
• Direct tax proposal is going to be revenue neutral by nature
• Excise duty on small cars to be 14%
• Excised duty reduced to 8% on water purification devices
• General CENVAT rate on the common products to be reduced from 16% to 14%
• Excise duty on paper and paper goods to be reduced
• Excise duty on the pharma products to be reduced to 14%
• Duties on aluminum scrap and steel melting scarp to be reduced
• Taxes on convergence products to be lowered
• Duty on non filtered cigarettes to be increased
• The excise duties on anti-AIDS drugs to be lowered
• Allocation for defence to be increased by 10%
• Rs. 32,676 crores to be allocated for PDS subsidy
• Risk Capital Fund to be formed in SIDBI
• Rs. 12,966 crores to be allocated for the National Highway Development Program
• Rs. 800 crores to be allocated for power sector reforms
• Rashtriya Krishi Vikas Yojana to receive Rs. 2,80,000 crores
• Rs. 7,200 crores to be allocated for the Ministry of Women and Child Development
• Loan waiver for marginal and small farmers
• Rs. 1,042 crores to be allocated for anti-Polio drive
• Rs. 540 crores to be allocated for the development of minority districts
• Rs. 31,280 crores to be allocated for Bharat Nirman Program

Individual Tax Exemptions from Budget 2008 India

Normal person or citizen has a reason to cheer as the tax exemption has been extended from Rs. 1,10,000 to 1,50,000. So now a normal person(called aam adami) can save Rs. 40,000 more cash in his pocket. And women you don't have worry neither senior citizen needs to worry because budget 2008 has got exemption for you as well.

Further Details
• Tax exemption limit increased from Rs. 1,10,000 to Rs. 1,50,000
• Tax exemption limit for women increased from Rs. 1,45,000 to 1,80,000
• Tax rate for the income bracket Rs. 1,50,000 to 3,00,000 to be 10%
• Tax rate for the income bracket Rs. 3,00,000 to Rs. 5,00,000 to be 20%
• Income above Rs. 5,00,000 to be taxed at 30%
• Exemption limit for the senior citizens to be increased from Rs. 1,95,000 to 2,25,000