Taxation - Budget Expectations- 2008

Taxation

Budget Expect: Tax exemption limit may be raised

New Delhi: Now that the budget is around the corner, there is some good news for all tax payees.

This budget may just bring about some changes in the existing income tax structure. CNN-IBN sources say the Finance Minister is set to juggle the Tax Slabs so that those with lower income pay less tax.

The current exemption limit of Rs 1 lakh, ten thousand for men is expected to increase up to Rs 1 lakh 25 thousand rupees.

However, it would be better to not expect any reduction in tax rates.

The lowest tax rate of 10 per cent is now likely to extend from Rs 1.25 lakhs to Rs 2 lakhs, instead of Rs 1.10 lakhs to Rs 1.50 lakhs as it is, at present.

Categories: Budget 2008, Markets