Here's what you can expect from Budget '08-'09

Mumbai: The following measures are under consideration for 2008-‘09 Union Budget, according to newspaper reports.

Finance Minister P Chidambaram will present the budget for 2008/09 on Feb 29.

* The standard tax deduction limit for individual tax payers may be raised 20 percent to Rs 120,000, allowing a taxpayer to save up to Rs 2,000 in taxes every year.

* Personal income tax exemption limit is likely to be raised to Rs 1.25 lakh a year from Rs 1.1 lakh. Taxable income of up to Rs 1.5 lakh may continue to attract 10 per cent income tax.

* Duties on life-saving medicines used in the treatment of cancer, AIDS and diabetes may be exempted.

* The union civil aviation minister has demanded rationalisation of aviation tax structure, a cut in sales tax on aviation turbine fuel and scrapping of service tax on business and first-class tickets for Indian international carriers.

* Indirect taxes on consumer goods may be moderated to boost consumption.

* Imported set top boxes may attract a customs duty of 5 per cent, in a move to encourage domestic goods.

* Public sector banks may be exempt from fringe benefit tax on their contribution to statutory pension funds.

* Duties on consumer electronics goods may be cut to 12 per cent from 16 per cent.

* Pass-through status for venture capital funds investing in food processing industry and infrastructure facilities such as warehouses may be restored. The status allows tax exemption for earnings of VC funds.

* The government is considering a proposal to waive taxes on the provisioning of non-performing (NPA) assets by banks, especially on farm sector lending. NPA provisioning is taxed at the rate of 30 per cent now.

* The 5 per cent customs duty for liquefied natural gas used as fuel in power generation projects is likely to be withdrawn.

Reuters has not verified the stories, collated from The Economic Times, Financial Express, Mint, Times of India and Business Standard, and does not vouch for their accuracy.