Main Gainers - Budget 2008

Main Gainers of the Budget :

Farmers  :   THE Indian Government does not have any reliable delivery system for providing the resources to the desired section of the Society . The Government desperation to provide benefits  to the Farmers results in unprecedented  move and the Government has proposed the Complete waiver of loan provided to Marginal Farmers.

The expected relief is expected to be Rs. 60,000 crore.

Middle Class  :

1. This Budget will help to increase the disposable Income of Middle Class including Salaried employee as Government has liberalized Tax Structure.

Proposed Tax Structure Includes  :

Particulars                                            Proposed Tax Slabs                Earlier Tax slabs

Income upto  Rs 100000/-                   Nil                                            Nil       

Income upto Rs 150000                       10%                                         Nil                   

Income upto Rs 250000                        20%                                        10%

Income upto Rs 300000                          30%                                      10%

Income above than 300000                    30%                                       20%

It will help reducing the tax liability of salaried employee and small businessman substantial. At the very same time Small Business Entrepreneurs will be encouraged to comply more with tax laws.

2. The Indian government has proposed to open more education school and Technical institutions like IIT in Bihar, Andhra and Rajasthan must help in improving the education
3. The Budget also propose reduction in duties in life saving Funds also helps the Indian Public at large

4. The Governmet has also decided to increase the Service Tax Limit , although with a view to streamline and introduction of unified GST Act, to Rs. 10 Lacs

5. Tax Holidays for setiing up the Hospitals will provide more hospitals to the public at large

Losers

The Indian government proposed to increase the capital gain from 10% to 15% and market has reacted negatively. We strongly feel that this is a positive step as it encourage the public at large to hold shares for more than 12 months as Long term capital gain on Equity is tax Free

Our Comments  :

We feel that this is the budget which has delivered to the main stakeholders to the Indian Government ie Farmers, Middle Class, Salaried Class and Students and with no main penalties to other stakeholder like Corporate is one of the most populist budget in last ten year time