Bonanza for Salaried Class

In a major bonanza to the salaried class, the government on Friday proposed to increase the income tax exemption limits from Rs 1.10 lakh to Rs 1.50 lakh, in addition to restructuring the tax slabs.
The proposals may result in a benefit of over Rs 50,000 to a taxpayer having an income of Rs 5 lakh annually.
The minimum benefit to a person with an annual income of Rs 1.5 lakh at the threshold will be around Rs 4,000, Finance Minister P Chidambaram said, while presenting the Budget 2008-09 in Lok Sabha.
According to the proposed slabs, income between Rs 1.5 lakh and Rs 3 lakh will be taxed at 10 per cent, between Rs 3 lakh and Rs 5 lakh at 20 per cent, while for Rs 5 lakh and above the rate would be 30 per cent in addition to 3 per cent education cess.
The tax exemption limit for women assessees has been raised from Rs 1.45 lakh to Rs 1.80 lakh, while in case of senior citizens it has been increased from Rs 1.95 lakh to Rs 2.25 lakh

RAILWAY BUDGET 2008-09

Railway budget 2008-2009
Railway Minister Lalu Prasad on Tuesday announced a reduction in fares in various classes and provided concessions in some categories of freight charges. Presenting his fifth consecutive Railway Budget, Mr. Prasad focused on improving passenger amenities and implementing mega investment plans for building railway infrastructure, besides announcing 53 new trains, including 10 ‘Garib Raths.’
Living up to the expectations of rail travellers, Mr. Prasad announced a five per cent reduction on second class fares beyond Rs. 50 on all categories of trains, while a Re.1 discount will be given on fares up to Rs. 50. Similarly, the fares for AC-I will be reduced by seven per cent and AC-II fares by four per cent. However, for popular trains and during peak period, the reduction will only be half as in previous years.
Keeping in mind the increased capacity of the newly designed AC-III tier and AC chair car coaches, Mr. Prasad reduced its fares by two per cent. However, the reduction will only be half for fares of popular trains.