The Hindu Business Line News Update Service

Fiscal deficit is estimated at 5.6 per cent of GDP at Rs 1,53,637 crore for the next fiscal.
Customs duty on diesel locomotive parts and conversion from AC to DC to be reduced from 25 per cent to 15 per cent.
Customs duty on imported spirits has been reduced to 156 per cent in line with WTO requirements.
Customs duty on personal baggage reduced from 60 to 50 per cent.
Peak customs duty rates reduced from 30 per cent to 25 per cent xcept on agriculture and dairy products.
Service tax raised from five per cent to 8 per cent and ten more items would be covered under it.
Rs 1.50 additional excise duty per litre to be imposed on light speed diesel.
Eight per cent excise duty to be introduced for a variety of articles including packaged refined edible oil.
Excise duty on electric vehicles has been reduced from 16 per cent to eight per cent.
Excise duty on pressure cooker and biscuits would be reduced from 16 per cent to eight per cent.
Items like mosaic tiles, utensils, cycle parts, spectacles, walking sticks, knives, kitchenwares would attract eight per cent CENVAT instead of 12 per cent.
Items attracting four per cent CENVAT at present to be totally exempted from excise duty.
A three-tier excise duty structure of 8, 16 and 24 per cent would be introduced. This would not cover petroleum, tobacco and pan masala products. Excise duty on motor cars has been reduced from 32 per cent to 24 per cent.
Simple one page income tax return form is being introduced.
Additional deduction for dividend earnings has been raised from Rs 9,000 to Rs 12,000. Total deduction under section 80-l would be Rs 15,000 including Rs 3,000 for investment in government securities.
Ten per cent surcharge to be levied on income over Rs 8.5 lakh per annum.
Income Tax exemption limit has been retained at the present level of Rs 50,000 but five per cent surcharge on personal income tax has been abolished.
Constitution amendment would be carried out to arm state governments to appropriate and collect service tax by states.
To give impetus to industry and exports the reduction of customs duty is being maintained.
Losses on account of introduction of VAT from April one for states will be compensated in phases.
Service tax to be integrated with other tax during 2003-04 to boost revenue of states.
There will be greater application of IT in tax administration.
Excise duties to be rationalised, fiscal consolidation will be continued.
Reprioritisation of expenditure to be undertaken.
Department of Economic Affairs is being restructured.
Six aspects of tax reforms to be addressed.
Government proposes to continue credit line for developing countries in Africa and Asia.
Repayment of External Commercial Borrowing upto 100 million dollars put under automatic route.
Interest rate on small savings schemes and public provident fund has been reduced by one per cent.
Foreign Direct Investment ceiling of 49 per cent for subsidiaries of foreign banks as well as private banks has been raised to 74 per cent.
Seventy five more items have been dereserved from Small Scale industries including leather and chemical.
Standard deduction for salaried class will be upto 40 per cent of the salary or Rs 30,000 whichever is lower for Income upto Rs five lakh. Above Rs five lakh, the standard deduction will be Rs 20,000.
Senior citizens with an income of Rs 1,53,000 exempt from income tax. With the standard deduction of Rs 30,000 the real exemption will go up to Rs 1,83,000.
For senior citizens. self declaration of tax returns will be accepted.
Varisht Bima Yojana for senior citizens above the age of 55 years to be introduced. The yojana will carry nine per cent interest rate.
New pension scheme with equal contribution from employers and the government.
Income Tax exemptions will be given for corporations set up by central and state governments for exservicemen.
Antoyadya yojana of providing subsidised wheat and rice to the poorest of the poor will be expanded to cover additional 50 lakh families, Singh said. At present the scheme covers one crore families.
The income tax interest deduction on housing loans upto Rs 1,50,000 for self-occupied houses will continue.
Education expenses upto Rs 12,000 per two children per family will be entitled to Sec 88 benefit under Income Tax act
Cut in excise duty of tobacco product from 16 per cent to 8 per cent.
Equal opportunities for disabled.
Disabled to get a deduction of Rs 50,000 and an enhanced deduction of Rs 75000 for permanently disabled
Hearing aids, Wheelchairs will attract only 5 per cent customs duty
Basic customs duty on glucometer and strips will be reduced from 10 to five per cent
It is proposed to reduce customs duty on life-saving equipment from 25 per cent to five per cent.
life saving drigs exempt from excise duty
In a move to encourage research and development in medical sector and the need to upgrade facilities, it has been decided to increase rate of depreciation of life saving equipment from existing 25 per cent to 40 per cent.
To promote India as a major health destination, Singh announced to extend tax benefits to private hospitals.
38 new road projects worth Rs 40,000 crore.
Two more major aiports in private sector in Delhi and Mumbai will be set up. Already two airports in Bangalore and Hyderabad are coming up.
Modernisation of JNPT and Kochi Ports at a cost of Rs 7,500 crore including dredging.
Additional cess of 50 paise per litre of fuel for funding North-South and East-West corridors to mop up Rs 2,600 crore.
Under a new health insurance scheme, an individual would have to pay one rupee per day as premium for 365 days, Rs 1.50 per day for a family of five and Rs two per day for a family of seven including dependents and will be eligible for a benefit of Rs 30,000 in case of hospitalisation. In the event of death, the family would get Rs 25,000.
Liberalised Government policy for mega power projects. Ceiling of 14 mega projects lifted and concessions will be available for all mega power projects which qualify.
Provision of safe drinking water would be given priority by further incentives to water treatment and supply projects.
Modernisation of taxation regime and expenditure rationalisation will be undertaken.
Interest commitment is Rs 1,15,653 core during 2002-03 which constitute 48.8 per cent of the revenue earnings.
Government intends to continue prepayment of high cost World Bank and ADB loans in the face of burgeoning foreign exchange reserves and low domestic interest rates. About three billion dollars have already been repaid in the current year.
For high voltage power transmission equipment, customs duty has been reduced to five per cent from the existing 25 per cent.
12th Finance Commission to address the high-debt burden of states. Government has decided to allow debt-swap scheme to avail of the lower interest rate benefits.
Debt of States towards Centre is Rs 2.44 lakh crore besides Rs 100,000 crore as coupon rate securities.
It is Government's resolve to encourage diversification of Horticulture and Floriculture, Singh said.
A new central sector scheme to promote hi-tech horticulture and precision farming.
Ministries of Food and Finance would jointly address the problem of sugar industry.
RBI has given instructions to enhance repayment period of medium term loan to nine years
Price stabilisation fund of Rs 500 crore will be created for tea and coffee.
Excise of Re one per kilo for tea has been replaced by cess of one per cent for modernisation of tea plantation.
To promote marine products, it has been decided to reduce excise duties on shrimp from 15 to five per cent.
Private banks will encouraged to open branches in rural sector to provide credit for farm equipment including tractors.
A number of initiatives proposed to conserve water by promoting drip irrigation and the like.
Bank credit for 50,000 self-help groups to be provided. Rs 598 crore already spent on 25,000 self-help groups as on January 3 this year.
Women empowerment to be given additional stress.
Andhra Pradesh Chief Minister Chandrababu Naidu will head a bipartisan task force with agriculture ministers from other states to expand and quicken drip irrigation projects.
Adequate outlay is being provided for the Task Force on inter-linking of rivers.
Special programmes for desert districts of Rajasthan for developing pastures. Rs 100 crore for setting up a Task Force for the purpose.
It is proposed to exempt equity based schemes from dividend and distribution tax for one year.
Tax holiday provided for companies for R and D.
Excise duty on all garments reduced from 12 to 10 per cent.
Garment and fabrics made by non-profit organisations exempt from excise duty.
Customs duty on a large number of textile machinery reduced from 25 per cent to five per cent to encourage modernisation.
All powerloom workers to be provided with speical insurance scheme for accidents.
Concession extended to IT under section 10 a and 12 b will be continued.
Income Tax exemption for pharmaceuticals and biotechnology to be at par with Information Technology.
Customs duty on specified electronics IT industry is being reduced in keeping with WTO requirement.
Customs duty on optical fibre has been reduced from 25 per cent to 20 per cent.
Customs duty on number of capital goods has been reduced from 25 per cent to 15 per cent.
Biotechnology and pharmaceutical R and D companies need not comply with export obligation of Rs 20 crore per annum to avail customs duty exemptions.
Reduced customs duty on rough and cut diamonds from 15 per cent to five per cent.
Government has decided to increase share capital to Rs 80 crore under EPCG schemes.
An India Development initiative to be set up in the Finance Ministry to attract investment.

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