Tax Law Changes – Individuals (FY 2008-09):     1] Exemption and Tax Rates:     Exemption from personal income tax in the case of all assesses increased from 110,000 to Rs.150, 000.     New income slabs and tax rates are:-     Income up to Rs.150,000 -- NIL     Rs.150,001 to Rs.300,000 -- 10%     Rs.300,001 to Rs.500,000 -- 20%     Rs.500,001 and above -- 30%     In case of a woman assesses the exemption limit increased from Rs.145, 000 to Rs.180, 000; for a senior citizens, the threshold limit increased from Rs.195, 000 to Rs.225,000.     There is no change in surcharge and education cess.     2] Short-Term Capital Gains (STGC):     STGC tax rate on sale of equity shares or units in equity-oriented mutual funds is increased to 15 % from existing rate of 10%.     3] Investments under Section 80C:     0.Senior Citizen Saving Scheme 2004 and the Post Office Time Deposit Account added to the basket of saving instruments under Section 80C of the Income Tax Act.     4] Deduction for Medical Insurance Premiums:     Additional deduction of Rs.15, 000 allowed under Section 80D to an individual paying medical insurance premium for his/her parent or parents.     5] Banking Cash Transaction Tax (BCTT):     BCTT is being withdrawn with effect from April 1, 2009.     6] Reserve Mortgage:     Loan installments/amounts received by the Senior Citizen under Reserve Mortgage scheme will be exempt from tax and the property mortgaged under the scheme will not be considered as transfer and hence capital gains will not arise on such mortgage.     7] Securities Transaction Tax (STT):     STT paid in respect of taxable securities transactions is allowed as deduction as a business expense if the income from such transactions is included under the head “Profits and gains of business”. There is no change in the present STT rates.     8] Commodities Transaction Tax (CTT):     CTT to be introduced on the same lines as STT on options and futures.