Section 80C deduction expanded to include post office five year deposits and senior citizen savings, eligible from the financial year start.
Investments by individuals and Hindu undivided families in the Five Year Post Office Time Deposit Account and the Senior Citizens Savings Scheme are eligible for deduction under Section 80C, subject to the overall deduction ceiling of one lakh; investments on or after the start of the financial year 2007-08 and subsequent years qualify, and Drawing and Disbursing Officers may consider such investments when determining employees' TDS liability.

Exemption of disability pension: banks instructed to stop deducting income tax from armed forces disability pensions.
An inquiry found a wrongful income tax deduction from an armed forces pensioner's disability pension. The central banking authority directed all agency banks to follow para 88.3 of the Defence Pension Payment Instructions 2005 and instructed pension-disbursing branches not to deduct income tax from disability pensions paid to armed forces pensioners.

Direct tax collection growth exceeds forty percent, advancing progress toward the annual budgeted revenue target for the period.
Strong growth in direct tax receipts for 1 April-15 December 2007 raised aggregate net collections sharply year on year and advanced progress toward the budgeted direct tax target; major contributors included Corporate Tax, Personal Income Tax and transaction based levies (Securities Transaction Tax, Fringe Benefit Tax, Banking Cash Transaction Tax), with marked regional variation in growth rates across metropolitan and regional offices.

Section 153(3) time limit absence: inordinate unexplained delay and lack of revenue diligence can bar late reassessment proceedings.
The provision creates a category of assessments that are not subject to the ordinary statutory time limits, permitting completion "at any time" in specified circumstances; however, where the revenue's initiation of such proceedings followed an inordinate and unexplained delay and showed lack of due diligence after the assessee's refund representations, the court quashed the late proceedings as procedurally unfair.

Tax deduction eligibility extended to post office time deposits and senior savings; monthly income account now gets a maturity bonus.
Investments in the Five Year Post Office Time Deposit Account and the Senior Citizens Savings Scheme are made eligible for deduction under the relevant income tax deduction provision from 1 April 2007. A bonus of five per cent will be payable on Post Office Monthly Income Account deposits upon maturity for new accounts opened on or after 8 December 2007, increasing the scheme's effective yield and enhancing its competitiveness with comparable bank deposits and government securities.

Direct tax collections rise sharply, reflecting strengthened tax compliance and improved tax administration in current fiscal.
Direct tax collections recorded substantial growth in the first eight months, reaching just over half of the budgeted direct tax target. Corporate Tax and Personal Income Tax registered marked increases, and Securities Transaction Tax, Fringe Benefit Tax and Banking Cash Transaction Tax also grew. Regional variations were notable, with the highest corporate tax growth in the North-Eastern region and highest personal income tax growth in the Madhya Pradesh & Chhattisgarh region. Tax deduction at source increased by over fifty percent and self-assessment tax payments rose by over seventy percent, indicating improved tax administration and compliance.