Union Budget 2008 and tax slab highlights

February 29, 2008 by financeminister

Finance minister P. Chidambaram has presented the union budget for year 2008-09 today. Major highlights of the budget. The changes include modified income tax slab.

Main attraction - Income tax slabs has been changed drastically in this budget.

• Income tax slab base for 2008-2009 raised to 1,50,000 rupees. View latest income tax slabs
• Corporate tax slabs remain unchanged
• Excise duty on 2/3 wheelers cut to 12 pct from 16 pct
• Major focus on farm and inflation
• Waiving of loans held by small farmers. Applicable to loans on farms of up to 2 hectares (5 acres). Rs 60,000 crore earmarked for this purpose.
• 20 percent rise in education spending.
• 15 percent rise in health spending
• 160 billion rupees earmarked for National Rural Employment Guarantee Scheme
• Excise duty on 2/3 wheelers cut to 12 pct from 16 pct
• Small and hybrid cars to enjoy reduced excise duties
• Excise duty on water purification items. reduced from 16 to 8 per cent.
• One per cent excise duty proposed on mobile phones.
• Duty on non filter cigarettes will be increased.
• Excise duty structure on petrol, diesel changed. More details here

Check Modified Income tax slab for the modified income tax slabs for financial year 2008-2009. You may also want to use the free quick Income tax calculator for finding out your tax based on the latest income tax slab.

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