Union Budget 2008 Expectation India

Mumbai: Following is a snapshot of analysts' expectations from the union budget compiled from brokerage reports.

Automobiles
• Uniform excise duty rates of 16 per cent for all cars, large and small.
• Reduction in excise duty on two wheelers to 12 or 8 per cent from 16 per cent.
• Reduction in the excise duty on buses to 16 per cent from 24 per cent.
Banking
• Raising FII/FDI limit in state-run banks to 49 per cent from 20 per cent.
• Relaxation in the lock-in period to three years from five years for bank deposits to qualify for tax benefits.
• Interest earned on long-term lending to infrastructure industries to be exempted from income tax.
Capital goods
• Reduction in excise duty on air conditioners meeting energy efficiency guidelines to 8 per cent from 16 per cent.
• Reduction in excise duty on power equipment to 8 per cent from 16 per cent.
• Rationalisation of tax structures with respect to dividend paid by subsidiaries and special purpose vehicles.
Cement
• Abolish the 5 per cent import duty on coal and pet coke.
Fertiliser
• Removal or reduction of customs duties on inputs like liquefied natural gas.
• Reduction in customs duty on sulphuric acid to 5 per cent from 7.5 per cent.
• General sales tax exemption for basic raw materials like natural gas, naphtha, etc.
Healthcare
• Infrastructure status for hospitals with certain eligibility norms.
• Relaxation of income tax for mergers and acquisitions with conditions.
Hotels
• Raising depreciation on hotel buildings to 20 per cent from 10 per cent.
Information technology
• Extension of Software Technology Park scheme, which is set to end by 2008/09.
• Reduction in excise duty on personal computers to 8 per cent from 12 per cent.