Budget 2008

Income tax payers are likely to get a major relief in the Budget as the government prepares itself to please the middle class in the election year.
Finance Minister P Chidambaram can give a marginal but visible relief to personal income tax assessees this year, as tax collections have improved substantially over the past three years, sources said.


With buoyant tax collections in 2007-08, there is significant pressure on Chidambaram to reduce the effective rates. The minister has acknowledged that with better tax compliance, there could be a case for cut in rates.

The income threshold limit for an income tax payer could be raised from Rs 1,10,000 to Rs 1,25,000 or Rs 1,30,000, sources said.