« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  Govt may scale down tax sops for renewable energy... 'No urgency to revise income tax rates now’... » No tax cuts likely in Budget '08 January, 14th 2008 With the Gujarat elections having snuffed out any prospects of Congress calling for early polls, Prime Minister Manmohan Singh and Finance Minister P Chidambaram have been busy working out the focus areas of Budget 2008. The good news could be an increase in the income tax exemption limit, though a cut in rates is virtually ruled out. Singh and Chidambaram have been labouring over the Budget and have been meeting frequently they spent a good two hours together on Thursday evening and the major points of emphasis are understood to have been thrashed out. The effort will be to keep tax rates stable, check inflation and incentivise manufacturing. Sources said that with several state polls due later this year, the FM may keep political imperatives in mind. So, government is likely to raise the tax exemption limit from Rs 1.1 lakh a year to Rs 1.25 lakh but may not tinker with tax slabs. Taxable income of up to Rs 1.5 lakh will continue to attract 10% income tax. While a section in the finance ministry is pushing for redefining slabs, the overall mood, driven by political considerations, seems to favour deferring the exercise for the moment. A final decision will be taken towards the end of the month. With polls due in states like Delhi, which has a large number of salaried employees, government is keen to be seen helping them tackle the rise in food prices. The FM's efforts, said sources, are expected to be directed to maintaining the growth impetus in the economy despite a global slowdown, particularly in the US. This will see the budget rolling out measures to ensure the economy maintains its 8-9 % clip. This is felt to be essential as the UPA nears the last lap of its term. A special focus on manufacturingparticularly on segments like textiles and leatheris part of a strategy to prop up the sector which has been hit by the hike in interest rates and rise of rupee against the dollar. Both the PM and FM are not in favour of announcing tax breaks. Though revenues have gone up, the FM has been wary of reducing rates. He has been more concerned over widening the tax net and stemming revenue loss.