Budget 2008 to be announced on Feb 29th, is going to be interesting as the Finance Minister tries to balance inflation while creating avenues for high expenditure by consumers.
So this could mean tax cuts resulting into inflation or a tax rise eating into consumption. But having thought about it I feel following is most likely -
1. Sec 80 C savings limit will be increased from Rs. 1 lac to Rs. 1.25 lac. it could be even higher.
2. The tax slabs will move upwards hence some of the lower income group people will be exempted from any personal income tax.
3. Though it doesnt seem likely but I think MAT rate will be lowered if not for everyone for IT industry atleast.
4. Relief packages for textiles, sugar etc are for sure.
Enhanced savings would mean people will save more to save taxes, which could lead to consumption but not as high as lowering of rate.
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