Monday, February 28 2005 14:14 Hrs (IST) - World Time -

New Delhi: Tax on withdrawal of 10,000 in cash from a bank

Along with 2005-06 General Budget, Chidambaram tabled Medium Term Fiscal Policy, Fiscal Policy Strategy and Macro Economic statements as mandated under Fiscal Responsibility on Budget Management Act.

13:18 PM

Ten rupees has to be paid as tax for withdrawal of 10,000 rupees.

Tax on withdrawal of 10,000 in cash from a bank on a single day.

12:57 PM

General tax limit changed to one lakh. For Women 1.25 lakh, for Senior citizens 1.5 lakh

Standard deductions to be changed. One lakh rupees of savings will be deducted before calculating the taxes.

Income tax limits changed.

Direct tax: Tax brackets changed

Proposed rates :

Rs 100000 NIL tax

Rs 1 to Rs 1.5 lakh 10% tax

Rs 1.5 to Rs 2.5 lakh 20%

Above Rs 2.5 lakh 30%

Plus surcharge of 10% will remain.

Medical insurance premium, Interest of loans for higher studies.

16% excise on iron and steel

Service tax rate has been retained.

12:48 PM

Petrol price to be increased. 50 paise for each litre. This is to fund the high way improvement fund.

Specific excise duty on cigarettes has been raised by 10 %.

Another 10 % ad valorem will be levied on tobacco products including gutka and chewing tobacco.

Vanaspati: 1% surcharge abolished.

Tax for SSI: Sealing SSI increased from Rs 3 crore to Rs 4 crore.

Tea: 1% surcharge abolished.

12:43 PM

Two percent duty for high priced imported jewellery.

Imitation jewellery duty reduced from 15 percent to eight percent.

Duty for Polyester filament yarn, tyre, and air conditioners reduced from 24 to 15 percent.

IT software will be exempt from CVD.

Specific duty on Molasses.

Cut flower duty from 30 to 20 percent

Duty on 217 Information Technology items redefined.

Coking coal duty reduced from 15 to 5 percent.

Printing press import duty reduced from 20 pc to 10 percent

New banking bill to be introduced in Budget session

12:38 PM

Refrigerators to cost less - duty reduced from 20 to 15%

Customs duty rates to be reduced to 15 percent and to 5 percent for selected articles.

Restructuring the subsidy in a cautious manner. Indian Institute of Science to be made a world class University - Will get 100 crore as financial assistance.

Committee to be set up to study making Mumbai a Regional financial centre.

70 lakh extra jobs in IT by 2009.

Revenue deficit put at 2.7 per cent of GDP and fiscal deficit at 4.5 per cent of GDP for 2004/05.

Revenue deficit estimated at Rs 95,312 crore and fiscal deficit at Rs 1,51,144 crore.

12:29 PM

Rs 1100 crore for rural electricification.

Allocation for Indira Awaas Yojana increased from Rs 2200 crore to Rs 2750 crore to build an additional 15 lakh houses.

12:27 PM

Rs 1400 crore for high way development. This is to develop 4000 kilometre four-line highway.

5.2 lakh village telephones installed so far. BSNL will install more village telephones during this fiscal.

Loans for rural areas to increase by 30 percent.

12:16 PM

Knowledge centres would be set up following recommendations of the National Commission for Farmers under the Mission 2007.

12:14 PM

Government to provide full support to IRDA for encouraging micro-insurance which is proposed to be carried out by NGO, Self-Finance Groups and Micro-Finance Institutions.

Task force's recommendations on reforming cooperative banks have been accepted.

The main features of the recommendations are restructuring of the accumulated debt and changes in legal framewoork to enable RBI to enforce prudential norms and strengthen the capital base of these cooperative banks.

RBI asked to open window for qualified NGOs to tap ECB route for micro finance.

The National Agriculture Insurance Scheme will be extended for Kharif and Rabi season of 2005/06.

12:12 PM

Rs 180 crore fund for flood control and erosion in Eastern parts of UP, Bihar, West Bengal, Orissa and North-East on account of floods in Bramaputra and Ganga.

Rs 52 crore will be allocated for Farakka Barage.

Pilot project to improve water bodies at a cost of Rs 100 crore.

12:08 PM

Credit policy will be liberalised to help the exporters.

Lower interest rates for sugar industry.

10 per cent capital subsidy scheme for textile sector.

Food-for-work programme in 150 districts.

Price stabilisation fund for communities not effective.

Services sector to get stable tax policy.

Micro finance finance will be changed to micro finance Equity fund.

12:03 PM

Equity support of Rs 14040 crore and Rs 3554 crore for Central PSUs including Railways.

Special grant for health and education for Bihar.

Rs 450 crore for Highway Development in North East.

12:00 PM

Alloation of Rs 5000 crore for backward regions grant fund.

Udhampur-Baramulla rail section to be completed on a priority basis.

Rs 3300 crore allocation for Rajiv Gandhi drinking water mission.

11:57 AM

Special plan assistance to Jammu and Kashmir. State Plan hiked from Rs 3,008 crore to Rs 4,200 crore.

Baglihar Hydel Project would be given adequate funds: FM.

11:53 AM

Farmer friendly National agricultural insurance scheme will be in place soon

68,822 villages to be connected with telephone facility.

400 crore for Rural micro irrigation system in rural India. More focus on irrigation to benefit farmers.

20,000 hectares will be brought under irrigation.

National Horticulture mission will be inaugurated on April 1. Funds will be allocated for this.

Private and public participation for Agriculture development.

60 lakh additional houses for rural poor.

Increase in drinking water supply system.

11:48 AM

Fertiliser subsidy pegged at Rs 16,254 crore.

Allocation for rural development is put at Rs 18,334 crore.

Allocation for Sarvashikha Abhiyan raised to Rs 7156 crore.

11:47 AM

Six AIIMS-type medical institutions will start in different parts of the country.

National rural health mission will be launched.

2000 fellowships under Rajiv Gandhi National Scholarship scheme for Scheduled Castes and Scheduled Tribes for pursuing courses like M. Phil and Ph. D.

Gross budgetary support for plan during 2005/06 has been fixed at Rs 1,72,500 crore.

11:45 AM

Allocation for the health sector increased to Rs 10,280 crore for 2005-06 as against Rs 8420 crore in the current year.

Antodya Anna Yojana Scheme coverage increased from two crores families to 2.5 crore families below poverty line.

11:38 AM

2.26 lakh self-help groups as part of efforts to tackle poverty and unemployment.

11:36 AM

Greater credit flow to urban poor.

Rs 6253 cr for SC, ST development.

Sector getting jobs will be given highest priority.

Gross budgetary support Rs 172,000 crore, up 16.9%.

Growth rate to be 6.9%, industry up 8.9%.

Crude duty import cut to 5%.

18,334 cr for rural development.

Non-food credit up 21.2%.

Food for work programme successful: FM

Non-food credit up 21.2%.

Food for work programme successful: FM

11:25

Finance Minister P Chidambaram today (Feb 28, 2005) presented the second budget of the UPA (United Progressive Alliance) Government in the Lok Sabha.

11:13 AM