Is New Income Tax Budget for 2008-09 Approved?

When I tried to declare my Income Tax for year 2008-09, our company Finance Team said that the new Income Tax budget for year 2008-09 has not been approved yet in the parliament. Is that true? Do I need to wait till it get approved? Can’t I declare my Income based on the new Income tax deductions?

3 Replies to “Is New Income Tax Budget for 2008-09 Approved?”

  1. I think you have some misconceptions. The budget announcements apply for the next financial year, i.e 2008-09 and assessment year is one year in advance, i.e. 2009-10.
    In your case, you’ve to file return for financial year 2007-08, i.e. assessment year 2008-09. Waiting would not benefit you, instead you’ll have to pay interest and penalties.
    Hope it clarifies your doubts.

  2. That is right – the proposals in the budget have to be approved before it is taken in for TDS calculations. This should happen sometime in May. Once so, your tax will be adjusted for the remaining months.
    All said and done, there should be no problem in you “declarating” your savings and .or investments in lieu of tax exemption – the rate at which and the investment limits will remain the same as the last FY07-08 until the budget provisions are passed in Parliament.

    To Kundu_ :
    Only the ‘budget’ has been presented; this is a proposal so to say; this needs to be passed – this always is, especially such a populist one 🙂

  3. It has already declared & decided in the Parliament. I think the new Income Tax budget is quite better than previous. An individual gets 40% rebater as per net income tax slab.

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