Union Budget 2008-09 at glance

• Increase in Income Tax exemption limit. The finance ministry raised the income-tax exemption limit from Rs 1,10,000 to Rs 1,50,000. Exemption limit for women was raised from Rs 1,45,000 to Rs 1,80,000 and exemption for senior citizens was raised from Rs 1,95,000 to Rs 2,25,000.

• New tax slabs will be: 10 % for 150,000 to 300,000, 20 % for 300,000 to 500,000 and 30 % above 500,000.

• Every income tax assesses to get relief of minimum of Rs 4,000.

• 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.

• Five year tax holiday for promoting cultural tourism.

• Banking cash transaction tax withdrawn from April 1, 2009.

• Tax to GDP ratio increased to 12.5 per cent.

• PAN requirement extended to all financial transactions.

• 3 IITs to be set up in Bihar, AP and Rajasthan. 16 new Central Universities to be built. Science scholarships for young learners.

• Farmers' debt to be waived.

• Duty on non filter cigarettes to be raised.

• Rs 50 crore for National Tiger Conservation Programme.

• Excise duty on small cars reduced to 12 per cent from 16 per cent and hybrid cars to 14 per cent.

• Rs 624 crore allocated for Commonwealth Games.

• Education & health to get 20% more from Rs 28,674 crore to Rs 34,4000 crore.

• Excise duty reduced from 16 to 8 per cent on water purification items.

• Anti-Aids drug exempted from excise duty.

• Small cars to cost less by Rs 10,000 to 15,000. Two wheelers to cost less,excise duty reduced by 10%.

Income Tax for people

A great news for the working class from the Budget presented for this year. Its the income tax that has been restructured towards the benefit of common population. The income tax exemption limit has been raised and also there are new tax slabs introduced for income tax payers.

The Finance ministry raised the income-tax exemption limit from Rs 1,10,000 to Rs 1,50,000. That for women incresed from Rs 1,45,000 to Rs 1,80,000 and for senior citizens is raised from Rs 1,95,000 to Rs 2,25,000.

New tax slabs is divided into 3 salary zones. They are:

For income upto Rs 1,50,000 tax liability will be nil.
10 % for 150,000 to 300,000.
20 % for 300,000 to 500,000.
30 % above 500,000.