Tag Archives: budget_2008

Budget 2008 gives 44000 Tax releif a year for retailers

Coming year there is a tax releif of 44000 – which can be invested or spent
Any male earning up to Rs 5 lakh a year will save Rs 44,000 as the tax percentage on a total as come down by 11 percent.
>For women, the difference is Rs 43,500 per annum.
>For senior citizens it is up to Rs 39,500 per annum.
>If you are buying medical insurance for your parents you get additional deduction upto 15000 added to the 100000 deduction that you have.(Section 80D )

Income

Old Tax

New Tax

Rs 2,50,000 (14,000) Rs 24,000 Rs 10,000
Rs 5,00,000 (45,000) Rs 1,00,000 Rs 55,000
Rs 7,50,000 (44,000) Rs 1,74,000 Rs 1,30,000
Rs 10,00,000 (45,000) Rs 2,49,000 Rs 2,05,000

Budget 2008 Highlights

Budget 2008 Highlights updated every 30 minutes. (Source BSEINDIA)

  • Budget Speech ends.
  • Central sales tax cut to 2% from 3%. FM’s Direct Tax (personal income tax) proposals to be revenue neutral. Indirect tax proposals to result in loss of Rs 5,000 crore.
  • Banking cash transaction tax withdrawn from April 1, 2009.
  • Commodities Transaction Tax to be introduced on the lines of Securities Transaction Tax.
  • Five year tax holiday for promoting cultural tourism.
  • Five year tax holiday for setting up hospitals in tier II and tier III regions for providing healthcare in rural areas from April 1, 2008.
  • Fresh facilities, encouragement to sports and guest houses exempted from Fringe Benefit Tax.
  • COMMODITIES TRANSACTION TAX IMPOSED AT THE SAME RATE AT THE STT
  • For women, the income tax limit goes up from Rs 1.45 lakh to Rs 1.80 lakh. In case of senior women citizens, it increases from Rs 1.95 lakh to Rs 2.25 lakh.
  • Securities Transaction Tax is a deductible expenditure from now on
  • New tax slabs will be: 10 per cent for Rs 1,50,000 to Rs 3,00,000, 20 per cent for Rs 3,00,000 to Rs 5,00,000 and 30 per cent above Rs 5,00,000.
  • Short term capital gains tax increased to 15%
  • Asset management service under mutual funds, services by stock exchanges to be brought under Services Tax net.
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