As filed with the Securities and Exchange Commission on April 9, 2008
                                     Investment Company Act File number 811-4265

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM N-CSR
                         CERTIFIED SHAREHOLDER REPORT OF
                   REGISTERED MANAGEMENT INVESTMENT COMPANIES

                  CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
               (Exact name of registrant as specified in charter)

                                600 FIFTH AVENUE
                               NEW YORK, NY 10020
               (Address of principal executive offices) (Zip code)

                                 CHRISTINE MANNA
                     C/O REICH & TANG ASSET MANAGEMENT, LLC
                                600 FIFTH AVENUE
                            NEW YORK, NEW YORK 10020
                     (Name and address of agent for service)

Registrant's telephone number, including area code: 212-830-5200

Date of fiscal year end:   January 31

Date of reporting period:  January 31, 2008
<PAGE>
ITEM 1: REPORT TO STOCKHOLDERS

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                                         600 FIFTH AVENUE, NEW YORK, N.Y. 10020
                                                                 (212) 830-5200
CONNECTICUT
DAILY TAX FREE
INCOME FUND, INC.
===============================================================================

Dear Shareholder:


We are pleased to present the annual report of Connecticut Daily Tax Free Income
Fund, Inc. (the "Fund") for the year ended January 31, 2008.

As of January 31, 2008, the Fund had net assets of $85,823,718.

We thank you for your  support and we look forward to  continuing  to serve your
cash management needs.



Sincerely,


/S/ Michael P. Lydon


Michael P. Lydon
President





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<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
EXPENSE CHART
FOR THE SIX MONTHS ENDED JANUARY 31, 2008
(UNAUDITED)
===============================================================================

As a shareholder of the Fund, you incur the following ongoing costs:  management
fees and other Fund  expenses.  You may also incur  distribution  and/or service
(12b-1) fees. This example is intended to help you understand your ongoing costs
(in  dollars)  of  investing  in the Fund and to  compare  these  costs with the
ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period August 1, 2007 through January 31, 2008.

ACTUAL EXPENSES

The first line of the table below  provides  information  about  actual  account
values and actual expenses.  You may use information in this line, together with
the amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6),  then  multiply  the result by the number in the first
line under the heading  entitled  "Expenses  Paid During the Period" to estimate
the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second  line of the table  below  provides  information  about  hypothetical
account  values and  hypothetical  expenses  based on the Fund's actual  expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return.  The hypothetical  account values and expenses may not
be used to estimate the actual ending  account  balance or expenses you paid for
the  period.  You may use this  information  to  compare  the  ongoing  costs of
investing in the Fund and other funds.  To do so,  compare this 5%  hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.

Please note that the  expenses  shown in the table are meant to  highlight  your
ongoing  costs only and do not reflect any  transactional  costs,  such as sales
charges  (loads),  redemption fees, or exchange fees that you may incur in other
mutual  funds.  Therefore,  the second line of the table is useful in  comparing
ongoing costs only,  and will not help you determine the relative total costs of
owning different funds.

<TABLE>

---------------------------------------------------------------------------------------------------------------------
                                      Beginning Account  Ending Account Value Expenses Paid            Annualized
               Class A                 Value 08/01/07          01/31/08         During the period*   Expense Ratio*
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                  <C>                    <C>                <C>
  Actual                                  $1,000.00            $1,012.70              $5.07              1.00%
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
  Hypothetical (5% return before          $1,000.00            $1,020.16              $5.09              1.00%
  expenses)
---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
               Class B                Beginning Account  Ending Account Value     Expenses Paid        Annualized
                                       Value 08/01/07          01/31/08         During the Period*   Expense Ratio*
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
  Actual                                  $1,000.00            $1,013.70              $4.06              0.80%
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
  Hypothetical (5% return before          $1,000.00            $1,021.17              $4.08              0.80%
  expenses)
---------------------------------------------------------------------------------------------------------------------

</TABLE>

*    Expenses are equal to the Fund's  annualized  expense ratios  multiplied by
     the average  account value over the period (August 1, 2007 through  January
     31, 2008), multiplied by 184/365 (to reflect the six month period).

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<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
JANUARY 31, 2008
===============================================================================

<TABLE>

                                                                                                                      Ratings (a)
                                                                                                                  -----------------
    Face                                                                        Maturity    Current     Value              Standard
  Amount                                                                          Date     Coupon(b)   (Note 1)   Moody's  & Poor's
---------                                                                         ----     ---------   --------   -------  --------
Put Bonds (c) (7.67%)
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                               <C>          <C>      <C>          <C>       <C>
$ 2,580,000   Puttable floating Option Tax-Exempt Receipts, Series PT-905
              Connecticut State HEFA RB (Saint Francis Hospital and
              Medical Center Issue, Series C) (d)
              Insured by FGIC                                                   03/06/08     3.73%  $  2,580,000
  4,000,000   Puerto Rico Industrial Medical & Environmental
              Pollution Control Facilitities Financing Authority
              (Abbott Laboratories Project) - Series 1983A                      03/01/08     3.95      4,000,154    P-1       A-1+
-----------                                                                                         ------------
  6,580,000   Total Put Bond                                                                           6,580,154
-----------                                                                                         ------------
Tax Exempt Commercial Paper (4.66%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000   New Haven, CT - Series 2002A
              LOC Landesbank Hessen                                             03/12/08     2.82%  $  2,000,000    P-1       A-1+
  2,000,000   New Haven, CT - Series 2002A
              LOC Landesbank Hessen                                             06/10/08     2.05      2,000,000    P-1       A-1+
-----------                                                                                         ------------
  4,000,000   Total Tax Exempt Commercial Paper                                                        4,000,000
-----------                                                                                         ------------
Tax Exempt General Obligation Notes & Bonds (17.16%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 4,000,000   Brookfield, CT BAN (d)                                            09/15/08     2.75%  $  4,017,254
  2,000,000   Danbury, CT BAN                                                   08/01/08     3.67      2,005,560    MIG-1     SP-1+
  2,745,000   East Lyme, CT BAN                                                 07/17/08     3.70      2,751,637    MIG-1
  2,000,000   Manchester, CT GO Temporary Notes (d)                             07/02/08     3.72      2,002,242
  2,000,000   Neshaminy, PA TRAN (d)                                            06/30/08     3.90      2,001,966
  1,950,000   Windsor, CT BAN                                                   06/26/08     3.70      1,952,245    MIG-1     SP-1+
-----------                                                                                         ------------
 14,695,000   Total Tax Exempt General Obligation Notes & Bonds                                       14,730,904
-----------                                                                                         ------------
Variable Rate Demand Instruments (e) (71.25%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 1,500,000   BB & T Municipal Trust Floater - Series 1002
              LOC Branch Banking & Trust Company                                11/06/23     2.38%  $  1,500,000    VMIG-1
  1,600,000   BB & T Municipal Trust Floater - Series 1004
              LOC Branch Banking & Trust Company                                01/01/25     2.38      1,600,000    VMIG-1
  2,000,000   Citigroup Global Markets ROC Trust II-R - Series 185 Commonwealth
              of Puerto Rico Public Improvement Bond of 2003-Series A
              Insured by FGIC                                                   07/01/16     4.75      2,000,000    VMIG-1
  2,545,000   Citigroup Global Markets ROC Trust II-R - Series 402
              Connecticut State HFA (Housing Mortgage Finance Program)
              Series E-2                                                        11/15/33     2.35      2,545,000    VMIG-1


</TABLE>

-------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008
===============================================================================

 <TABLE>

                                                                                                                      Ratings (a)
                                                                                                                  -----------------
    Face                                                                        Maturity    Current     Value              Standard
  Amount                                                                          Date     Coupon(b)   (Note 1)   Moody's  & Poor's
---------                                                                         ----     ---------   --------   -------  --------
Variable Rate Demand Instruments (e) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                               <C>          <C>      <C>          <C>       <C>
$ 1,825,000   Citigroup Global Markets ROC Trust II-R - Series 6501
              Weston, CT                                                        07/15/22     2.26%  $  1,825,000    VMIG-1
  2,000,000   Commonwealth of Puerto Rico Public Improvement Refunding
              Bonds Series 2007 A
              Insured by FSA                                                    07/01/29     1.80      2,000,000    VMIG-1    A-1+
  2,300,000   Connecticut State Development Authority Solid Waste Disposal
              Facilities RB (Rand - Whitney Containerboard Limited)
              Partnership Project) - Series 1993
              LOC Bank of Montreal                                              08/01/23     2.19      2,300,000    VMIG-1    A-1+
  1,250,000   Connecticut State Development Authority IDRB
              (Acucut Inc. Project) - Series 1998
              LOC Wachovia Bank, N.A.                                           06/01/18     2.27      1,250,000    P-1       A-1+
    500,000   Connecticut State Development Authority IDRB
              (Gerber Scientific Incorporated) - Series 1984
              LOC Royal Bank of Scotland                                        12/01/14     2.17        500,000              A-1+
    630,000   Connecticut State HEFA RB (Bradley Health Care Issue) - Series B
              LOC Bank of America, N. A.                                        07/01/29     2.09        630,000    VMIG-1
  2,770,000   Connecticut State HEFA RB (Eastern Connecticut Health Network)
              - Series B
              LOC Comerica Bank                                                 07/01/34     2.22      2,770,000    VMIG-1    A-1+
  1,000,000   Connecticut State HEFA RB (Gaylord Hospital Issue) - Series B
              LOC Bank of America, N. A.                                        07/01/37     2.13      1,000,000              A-1+
  1,500,000   Connecticut State HEFA RB (Greenwich Family YMCA Issue) - Series A
              LOC Bank of New York                                              07/01/35     2.17      1,500,000    VMIG-1
  3,000,000   Connecticut State HEFA RB (Hospital of Saint Raphael) - Series M
              LOC KBC Bank, N. A.                                               07/01/24     2.29      3,000,000    VMIG-1    A-1
  2,000,000   Connecticut State HEFA RB (The Hotchkiss School) - Series A       07/01/30     1.82      2,000,000    VMIG-1    A-1+
  2,910,000   Connecticut State HEFA RB (Kingswood-Oxford School Issue)-Series B
              LOC Allied Irish Bank                                             07/01/30     2.10      2,910,000    VMIG-1
  1,160,000   Connecticut State HEFA RB
              (Mansfield Center for Nursing and Rehabilitation) - Series B
              LOC Bank of America, N.A.                                         07/01/22     2.13      1,160,000              A-1+
  1,400,000   Connecticut State HEFA RB (University of New Haven) - Series 2005E
              LOC Wachovia Bank, N.A.                                           07/01/35     2.12      1,400,000              A-1+
  4,000,000   Connecticut State HEFA RB (Yale University) - Series T-2          07/01/29     1.69      4,000,000    VMIG-1    A-1+
  1,000,000   Connecticut State HEFA RB (Yale University) - Series U-2          07/01/33     2.09      1,000,000    VMIG-1    A-1+
    105,000   Connecticut State HEFA RB (Yale University) - Series V-2          07/01/36     1.60        105,000    VMIG-1    A-1+


</TABLE>

-------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
<PAGE>
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<TABLE>

                                                                                                                      Ratings (a)
                                                                                                                  -----------------
    Face                                                                        Maturity    Current     Value              Standard
  Amount                                                                          Date     Coupon(b)   (Note 1)   Moody's  & Poor's
---------                                                                         ----     ---------   --------   -------  --------
Variable Rate Demand Instruments (e) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                               <C>          <C>      <C>          <C>       <C>
$ 2,500,000   Connecticut State HFA (Housing Mortgage Finance Program)
              - Series 2000B-3
              Insured by AMBAC Assurance Corporation                            11/15/31     2.80%  $  2,500,000    VMIG-1    A-1+
  2,000,000   Connecticut State HFA(Housing Mortgage Finance Program)-Series D-1
              Insured by AMBAC Assurance Corporation                            11/15/23     3.90      2,000,000    VMIG-1    A-1+
  2,700,000   Connecticut State Second Lien Special Tax Obligation Refunding
              Bonds - Series 2003-1 (Transportation Infrastructure Purposes)
              Insured by AMBAC Assurance Corporation                            02/01/22     3.80      2,700,000    VMIG-1    A-1+
    250,000   Connecticut State Second Lien Special Tax Obligation Refunding
              Bonds - Series 2003-2 (Transportation Infrastructure Purposes)
              Insured by AMBAC Assurance Corporation                            02/01/22     3.80        250,000    VMIG-1    A-1+
  1,980,000   J.P. Morgan Securities, Inc. Puttable Tax-Exempt Receipts
              Series 291
              State of Connecticut GO 2002 Series D
              Insured by FSA                                                    11/15/13     2.25      1,980,000              A-1+
  4,000,000   Lehman Municipal Trust Receipts Floater Trust Receipts 2007 P108W
              (Connecticut State HEFA RB (Yale University Issue) - Series Z-3   07/01/42     1.96      4,000,000              A-1
  4,895,000   Merrill Lynch Capital Services, Inc. Puttable Floating Option
              Tax-Exempt Receipts Series PA 783 (Puerto Rico Infrastructure
              Financing Authority Special Obligation Bonds, 2000 Series A)      04/01/09     2.38      4,895,000              A-1+
  1,000,000   Nashville & Davidson County, TN HEFA Board of the Metropolitan
              Government MHRB (Wedgewood Towers Project) - Series 2004A
              LOC Amsouth Bank, N.A.                                            06/01/34     2.94      1,000,000    P-1       A-1
    395,000   New Britain, CT GO -  Series 2000B
              Insured by AMBAC Assurance Corporation                            04/01/20     4.25        395,000              A-1+
    860,000   New Canaan, CT Housing Authority RB (The Village
              at Waveny Care Center Project)- Series 2002
              LOC Bank of America, N.A.                                         01/01/22     2.09        860,000              A-1+
  3,070,000   TOCs (TICs/TOCs Trust - Series 2000-1) Relating to Puerto Rico
              Infrastructure Financing Authority - Series 2000A
              LOC U.S. Government                                               04/01/27     2.23      3,070,000              A-1+
    500,000   TOCs (TICs/TOCs Trust - Series 2001-1) Relating to Puerto Rico
              Public Improvement Refunding Bonds - Series 2001
              Insured by FSA                                                    07/01/27     2.23        500,000              A-1+
-----------                                                                                          -----------
 61,145,000   Total Variable Rate Demand Instruments                                                  61,145,000
-----------                                                                                          -----------
              Total Investments (100.74%) (Cost $86,456,058+)                                        $86,456,058
              Liabilities in excess of cash and other assets (-0.74%)                                   (632,340)
                                                                                                     -----------
              Net Assets (100.00%)                                                                   $85,823,718
                                                                                                     ===========
              +   Aggregate cost for federal income tax purposes is identical.

</TABLE>

-------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JANUARY 31, 2008
===============================================================================

FOOTNOTES:

(a)  Unless the securities are assigned their own ratings, the ratings are those
     of the bank whose letter of credit  guarantees  the issue or the  insurance
     company  who insures the issue.  All  letters of credit and  insurance  are
     irrevocable  and direct pay covering both  principal and interest.  Ratings
     are unaudited.

     In addition, certain issuers have  either  a line of  credit,  a  liquidity
     facility, a standby purchase agreement or some other financing mechanism to
     ensure the remarketing of the securities.  This is not a guarantee and does
     not serve to insure or collateralize the issue.

(b)  The interest rate shown  reflects the  security's  current  coupon,  unless
     yield is available.

(c)  The maturity date indicated for the put bonds is the next put date.

(d)  Securities that are not rated which the Fund's adviser has determined to be
     of comparable quality to those rated securities in which the fund invests.

(e)  Securities  payable on demand at par including  accrued  interest  (usually
     with seven days' notice) and, where indicated,  are unconditionally secured
     as to principal and interest by a bank letter of credit. The interest rates
     are  adjustable  and are based on bank prime rates or other  interest  rate
     adjustment  indices.  The rate  shown is the rate in  effect at the date of
     this statement.

<TABLE>

KEY:
<S>         <C> <C>                                                 <C>    <C> <C>
     BAN     =  Bond Anticipation Note                               LOC    =   Letter of Credit
     FSA     =  Financial Security Assurance                         MHRB   =   Multi-Family Housing Revenue Bond
     FGIC    =  Financial Guaranty Insurance Company                 RB     =   Revenue Bond
     GO      =  General Obligation                                   ROC    =   Reset Option Certificates
     HEFA    =  Health and Education Facilities Authority            TICs   =   Trust Inverse Certificates
     HFA     =  Housing Finance Authority                            TOCs   =   Tender Option Certificates
     IDRB    =  Industrial Development Revenue Bond                  TRAN   =   Tax and Revenue Anticipation Notes

<CAPTION>

Breakdown of Portfolio Holdings by State:

----------------------------------------------------------------------
         State                   Value             % of Portfolio
----------------------------------------------------------------------
----------------------------------------------------------------------
<S>                            <C>                     <C>
  Connecticut                  $63,888,938              73.90%
  Pennsylvania                   2,001,966               2.31
  Puerto Rico                   16,465,154              19.04
  Tennessee                      1,000,000               1.16
  Other                          3,100,000               3.59
----------------------------------------------------------------------
  Total                        $86,456,058             100.00%
----------------------------------------------------------------------

</TABLE>

-------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 2008
===============================================================================

<TABLE>

ASSETS:
<S>                                                                                           <C>
   Investments in securities, at amortized cost (Note 1)..................................    $    86,456,058
   Accrued interest receivable............................................................            598,484
   Prepaid expenses.......................................................................              3,496
   Other receivables......................................................................              4,609
                                                                                              ---------------
         Total assets.....................................................................         87,062,647
                                                                                              ---------------
LIABILITIES:

   Payable to affiliates*.................................................................             51,699
   Due to Custodian ......................................................................          1,035,983
   Accrued expenses.......................................................................             84,676
   Dividends payable......................................................................             63,062
   Capital gain payable...................................................................              3,509
                                                                                              ---------------
         Total liabilities................................................................          1,238,929
                                                                                              ---------------
   Net assets.............................................................................    $    85,823,718
                                                                                              ===============
SOURCE OF NET ASSETS:

   Net capital paid in on shares of capital stock (Note 4)................................    $    85,816,268
   Accumulated undistributed net realized gain............................................              7,450
                                                                                              ---------------
   Net assets.............................................................................    $    85,823,718
                                                                                              ===============

<CAPTION>

Net asset value, per share (Note 4):
<S>                                                 <C>                 <C>                        <C>
Class Name                                          Net Assets          Shares Outstanding         Net Asset Value
Class A Shares..............................        $65,087,851             65,096,088                 $1.00
Class B Shares..............................        $20,735,867             20,738,491                 $1.00

</TABLE>

*    Includes fees payable to Reich & Tang Asset  Management,  LLC, Reich & Tang
     Distributors, Inc. and Reich & Tang Services, Inc.

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The accompanying notes are an integral part of the financial statements.
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF OPERATIONS
YEAR ENDED JANUARY 31, 2008
===============================================================================

<TABLE>

INVESTMENT INCOME
<S>                                                                                           <C>
Income:
  Interest...................................................................................$       2,989,230
                                                                                             -----------------
Expenses: (Note 2)
   Investment management fee.................................................................          251,882
   Administration fee........................................................................          176,317
   Shareholder servicing fee (Class A shares)................................................          122,652
   Shareholder servicing fee (JPMorgan Select shares)........................................              161
   Custodian expenses........................................................................            8,597
   Shareholder servicing and related shareholder expenses+...................................           67,203
   Legal, compliance and filing fees.........................................................           57,526
   Audit and accounting......................................................................           95,408
   Directors' fees and expenses..............................................................           10,703
   Miscellaneous.............................................................................            5,645
                                                                                             -----------------
       Total expenses........................................................................          796,094
       Less: Expenses paid indirectly........................................................           (1,596)
                                                                                             -----------------
       Net expenses..........................................................................          794,498
                                                                                             -----------------
   Net investment income.....................................................................        2,194,732

REALIZED GAIN (LOSS) ON INVESTMENTS

Net realized gain (loss) on investments......................................................           29,325
                                                                                             -----------------
Increase in net assets from operations.......................................................$       2,224,057
                                                                                             =================

</TABLE>

+    Includes class specific  transfer agency  expenses of $30,663,  $11,277 and
     $41 for Class A, Class B, and JPMorgan Select shares, respectively.

-------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED JANUARY 31, 2008 AND 2007
===============================================================================

<TABLE>

                                                                                2008                       2007
INCREASE (DECREASE) IN NET ASSETS                                       ----------------           -----------------
<S>                                                                     <C>                        <C>
Operations:
     Net investment income......................................        $      2,194,732           $       2,314,805
     Net realized gain/(loss) on investments....................                  29,325                      (1,598)
                                                                        ----------------           -----------------
     Increase in net assets from operations.....................               2,224,057                   2,313,207

Dividends to shareholders from net investment income*:
     Class A shares.............................................              (1,564,296)                 (1,380,161)
     Class B shares.............................................                (628,295)                   (622,319)
     JPMorgan Select shares.....................................                  (2,141)                   (312,325)
                                                                        ----------------           -----------------
     Total dividend to shareholders.............................              (2,194,732)                 (2,314,805)

Distributions to shareholders from realized gains on investments:
     Class A shares.............................................                  (2,658)                    (11,885)
     Class B shares.............................................                    (851)                     (4,823)
     JPMorgan Select shares.....................................                     -0-                         (60)
                                                                        ----------------           -----------------
     Total distribution to shareholders.........................                  (3,509)                    (16,768)

Capital share transactions (Note 3):
     Class A shares.............................................               8,466,929                  (4,372,290)
     Class B shares.............................................                (700,868)                 (3,756,552)
     JPMorgan Select shares.....................................                (261,863)                (33,909,624)
                                                                        ----------------           -----------------
     Total capital share transactions...........................               7,504,198                 (42,038,466)
                                                                        ----------------           -----------------
Total increase(decrease)........................................               7,530,014                 (42,056,832)
Net assets:
     Beginning of year..........................................              78,293,704                 120,350,536
                                                                        ----------------           -----------------
     End of year................................................        $     85,823,718           $      78,293,704
                                                                        ================           =================
     Undistributed net investment income........................        $            -0-           $             -0-
                                                                        ================           =================

</TABLE>

* Designated as exempt-interest dividends for federal income tax purposes.

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The accompanying notes are an integral part of the financial statements.
<PAGE>
-------------------------------------------------------------------------------
CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS

===============================================================================

1. Summary of Accounting Policies

Connecticut  Daily  Tax Free  Income  Fund,  Inc.  (the  "Fund")  is a  no-load,
non-diversified,  open-end  management  investment  company registered under the
Investment  Company  Act of 1940.  The Fund is a short  term,  tax-exempt  money
market fund.  The Fund had three classes of stock  authorized,  Class A, Class B
and JPMorgan  Select shares.  The JPMorgan  Select shares were liquidated on May
24, 2007.  The Class A and JPMorgan  Select  shares are subject to a service fee
pursuant to the Fund's  Distribution  and Service Plans.  The Class B shares are
not subject to a service  fee.  Additionally,  the Fund may  allocate  among its
classes certain expenses, to the extent allowable to specific classes, including
transfer agent fees, government  registration fees, certain printing and postage
costs, and  administrative  and legal expenses.  Class specific  expenses of the
Fund were limited to shareholder  servicing  fees and transfer  agent  expenses.
Income,  expenses (other than expenses  attributable to a specific  class),  and
realized and  unrealized  gains or losses on  investments  are allocated to each
class of shares  based on its relative net assets.  In all other  respects,  all
share classes represent the same interest in the income and assets of the Fund.

The Fund's  financial  statements  are prepared in  accordance  with  accounting
principles  generally  accepted in the United  States of America for  investment
companies as follows:

    a) Valuation of Securities -

     Investments are valued at amortized cost, which approximates  market value.
     Under this valuation  method, a portfolio  instrument is valued at cost and
     any discount or premium is amortized on a constant basis to the maturity of
     the instrument. If fluctuating interest rates cause the market value of the
     Fund's  portfolio to deviate more than 1/2 of 1% from the value  determined
     on the basis of  amortized  cost,  the  Board of  Directors  will  consider
     whether any action  should be  initiated.  The  maturity  of variable  rate
     demand instruments is deemed to be the longer of the period required before
     the Fund is  entitled  to receive  payment of the  principal  amount or the
     period remaining until the next interest rate adjustment.

    b) Federal Income Taxes -

     It is the Fund's  policy to comply with the  requirements  of the  Internal
     Revenue Code applicable to regulated investment companies and to distribute
     all of its tax exempt and taxable income to its shareholders. Therefore, no
     provision for federal income tax is required.

    c) Dividends and Distributions -

     Dividends from investment  income  (excluding  capital gains and losses, if
     any, and  amortization  of market  discount)  are  declared  daily and paid
     monthly.  Net realized  long-term capital gains, if any, are distributed at
     least  annually  and in no event  later  than 60 days  after the end of the
     Fund's fiscal year.

    d) Use of Estimates -

     The  preparation  of financial  statements  in conformity  with  accounting
     principles  generally  accepted  in the United  States of America  requires
     management  to make  estimates  and  assumptions  that affect the  reported
     amounts of assets and liabilities  and disclosure of contingent  assets and
     liabilities  at the  date of the  financial  statements  and  the  reported
     amounts of increases and decreases in net assets from operations during the
     reporting period. Actual results could differ from those estimates.

    e) Representations and Indemnifications -

     In the normal  course of  business  the Fund  enters  into  contracts  that
     contain a variety of  representations  and warranties which provide general
     indemnifications.  The Fund's maximum exposure under these  arrangements is
     unknown,  as this would involve  future claims that may be made against the
     Fund that have not yet occurred.  However,  based on  experience,  the Fund
     expects the risk of loss to be remote.

-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------



===============================================================================

1. Summary of Accounting Policies (continued)

    f) General -

     Securities transactions are recorded on a trade date basis. Interest income
     including  accretion of discount and amortization of premium, is accrued as
     earned. Realized gains and losses from securities transactions are recorded
     on the identified cost basis.

2. Investment Management Fees and Other Transactions with Affiliates

Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management,  LLC (the "Manager") at the annual rate of
0.30% of the Fund's average daily net assets.

Pursuant to an Administrative  Services Contract the Fund pays to the Manager an
annual fee of 0.21% of the Fund's average daily net assets.

Pursuant to Distribution and Service Plans adopted under Securities and Exchange
Commission  Rule  12b-1,  the  Fund and  Reich & Tang  Distributors,  Inc.  (the
"Distributor"),  an  affiliate of the  Manager,  have entered into  Distribution
Agreements  (with respect to all classes) and Shareholder  Servicing  Agreements
(with  respect to Class A and JPMorgan  Select  shares  only).  For its services
under the Shareholder  Servicing  Agreements,  the Distributor receives from the
Fund a fee equal to 0.20% of the Fund's  average  daily net assets with  respect
only  to the  Class A and  JPMorgan  Select  shares.  There  were no  additional
expenses borne by the Fund pursuant to the Distribution and Service Plans.

Directors of the Fund not affiliated  with the Manager are paid a fee that is to
be allocated among multiple funds, as defined below.  Each Independent  Director
receives  an annual  retainer  of $50,000  and a fee of $3,000 for each Board of
Directors meeting attended.  Each Independent Director also receives a fee up to
$1,500 at the discretion of the Lead Director for telephonic  Board meetings and
committee  meetings  that are not held on the  same day as a Board  Meeting.  In
addition,  the Lead Independent  Director  receives an additional  annual fee of
$12,000,  payable  quarterly  and the Audit  Committee  Chairman and  Compliance
Oversight  Committee  Chairman  will each  receive an  additional  annual fee of
$8,000, payable quarterly. Each Independent Director will also be reimbursed for
all  out-of-pocket  expenses  relating to attendance at such meetings.  The fees
noted above are to be allocated at the discretion of the Manager among the Fund,
the California  Daily Tax Free Income Fund,  Inc.,  the Florida Daily  Municipal
Income Fund,  the New Jersey Daily  Municipal  Income Fund,  Inc., and the Daily
Income  Fund.  Effective  January 1, 2008 the  annual  retainer  was  changed to
$60,000 and the annual fees payable to the Lead Independent Director,  the Audit
Committee Chairman and the Compliance  Oversight Committee Chairman were changed
to $13,800, $9,200 and $9,200, respectively.

Included in the Statement of Operations under the caption "Shareholder servicing
and related  shareholder  expenses"  are fees  pursuant to the  Transfer  Agency
Agreement  between  Reich  & Tang  Services,  Inc.  and the  Fund.  Reich & Tang
Services,  Inc.,  an affiliate of the  Manager,  as transfer  agent and dividend
agent,  receives a fee of $17.40 per  account  per year or a minimum of 0.05% of
the  monthly  average  net assets of the Class A and Class B Shares of the Fund.
For the year ended January 31, 2008 these fees amounted to:

                                                   Amount                %
                                                 ---------             -----
 Class A shares.............................     $  30,674             0.05%
 Class B Shares.............................        11,279             0.05%
 JPMorgan Select Shares.....................            41             0.05%
                                                 ---------
 Total Transfer Agency Fees.................     $  41,994
                                                 =========

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<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

===============================================================================

3. Compensating Balance arrangement and Other Transactions

Reich & Tang Asset  Management  LLC and the Bank of New York Mellon (the "Bank")
have entered into a  compensating  balance  arrangement,  effective  November 1,
2006, with the Connecticut  Daily Tax Free Income Fund,  Inc., which would allow
the Fund to compensate  the Bank for any  overdrafts  by  maintaining a positive
cash balance the next day. Conversely,  on any day the Fund maintains a positive
balance it will be allowed to  overdraw  the  account as  compensation.  In both
cases the Federal Reserve  requirements,  currently 10%, will be assessed on the
end of day balances.  Therefore,  all overdrafts  must be compensated at 100% of
the total and all  positive  balances  will allow for an overdraft of 90% of the
total. On January 31, 2008, the Fund was overdrawn $1,078,040.

For the year ended January 31, 2008,  the breakdown of expenses paid  indirectly
by the Fund were as follows:

   Custodian expenses.....................................   $    1,596
                                                             ==========
4. Capital Stock

At  January  31,  2008,  20,000,000,000  shares of $.001 par  value  stock  were
authorized.  Transactions  in capital  stock,  all at $1.00 per  share,  were as
follows:

<TABLE>
                                                     Year                               Year
                                                     Ended                              Ended
Class A shares                                 January 31, 2008                   January 31, 2007
--------------                                 ----------------                   ----------------
<S>                                            <C>                                <C>
Sold......................................         447,943,984                        261,598,786
Issued on reinvestment of dividends.......           1,203,246                          1,065,508
Redeemed..................................        (440,680,301)                      (267,036,584)
                                               ----------------                   ----------------
Net increase (decrease)...................           8,466,929                         (4,372,290)
                                               ================                   ================
Class B shares
--------------
Sold......................................          51,899,044                         89,428,573
Issued on reinvestment of dividends.......             636,364                            624,566
Redeemed..................................         (53,236,276)                       (93,809,691)
                                               ----------------                   ----------------
Net increase (decrease)...................            (700,868)                        (3,756,552)
                                               ================                   ================
JPMorgan Select shares
----------------------
Sold......................................              11,439                         44,752,599
Issued on reinvestment of dividends.......               2,444                            342,331
Redeemed..................................            (275,746)                       (79,004,554)
                                               ----------------                   ----------------
Net increase (decrease)...................            (261,863)                       (33,909,624)
                                               ================                   ================

</TABLE>

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<PAGE>
-------------------------------------------------------------------------------

5. Concentration of Credit Risk

The Fund invests primarily in obligations of political subdivisions of the State
of Connecticut and,  accordingly,  is subject to the credit risk associated with
the non-performance of such issuers.  Approximately 55% of these investments are
further secured,  as to principal and interest,  by credit  enhancements such as
letters of credit,  municipal bond insurance, and guarantees issued by financial
institutions.  The Fund  maintains  a  policy  of  monitoring  its  exposure  by
reviewing the  creditworthiness of the issuers, as well as that of the financial
institutions  issuing  the  letters of  credit,  and by  limiting  the amount of
holdings with letters of credit from one financial institution.

6. Tax Information

The tax character of all  distributions  paid during the years ended January 31,
2008 and 2007 were as follows:

<TABLE>
                                                               2008                            2007
                                                           -----------                     -----------
<S>                                                        <C>                             <C>
     Tax-exempt income...............................      $ 2,194,732                     $ 2,314,805
     Ordinary income.................................              504                             -0-
     Long-term capital gain..........................            3,005                          16,768

</TABLE>

During the year ended January 31, 2008, the Fund utilized $18,366 of its carried
forward capital losses.

At January  31,  2008,  undistributed  capital  gains for  income  tax  purposes
amounted to $7,450.

The  Fund  has   adopted   Financial   Accounting   Standards   Board   ("FASB")
Interpretation   No.  48,   Accounting  for  Uncertainty  in  Income  Taxes,  an
interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 requires  Management
to  determine  whether a tax  position of the Fund is more likely than not to be
sustained  upon  examination  by  the  applicable  taxing  authority,  including
resolution  of  any  related  appeals  or  litigation  processes,  based  on the
technical  merits of the position.  The tax benefit to be recognized is measured
as the largest  amount of benefit that is greater than fifty  percent  likely of
being realized upon ultimate settlement which could result in the Fund recording
a tax  liability  that would  reduce net  assets.  FIN 48 must be applied to all
existing tax positions upon initial adoption and the cumulative  effect, if any,
is to be reported as an adjustment to net assets.

Based on its analysis, Management has determined that the adoption of FIN 48 did
not have an impact to the Fund's  financial  statements upon adoption.  However,
Management's  conclusions  regarding  FIN  48  may  be  subject  to  review  and
adjustment  at a later date  based on factors  including,  but not  limited  to,
further implementation guidance expected from the FASB, and on-going analyses of
tax laws, regulations and interpretations thereof.

7. New Accounting Pronouncement

In September 2006, FASB issued Statement of Financial  Accounting  Standards No.
157,  Fair  Value  Measurements  ("SFAS157").   SFAS  157  defines  fair  value,
establishes a framework for measuring fair value, and expands  disclosures about
fair value  measurements.  SFAS 157 applies to reporting periods beginning after
November 15, 2007. Management is currently evaluating the impact the adoption of
SFAS 157 will have on the Fund's financial statements.

-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

===============================================================================

<TABLE>

8. Financial Highlights


                                                                                       Years Ended January 31,
                                                                   ------------------------------------------------------------
Class A shares                                                       2008          2007         2006        2005         2004
--------------                                                     --------       -------      ------      ------       -------
<S>                                                                 <C>          <C>          <C>          <C>          <C>
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year...............................  $   1.00      $  1.00      $  1.00      $  1.00      $  1.00
                                                                   ---------     --------     --------     --------     --------
Income from investment operations:
    Net investment income........................................      0.026        0.025        0.015        0.003        0.001
    Net realized and unrealized gain (loss)
      on investments.............................................      0.000        0.000        0.000         --          0.000
                                                                   ---------     --------     --------     --------     --------
    Total from investment operations.............................      0.026        0.025        0.015        0.003        0.001
Less distributions from:
    Dividends from net investment income.........................     (0.026)      (0.025)      (0.015)      (0.003)      (0.001)
    Net realized gains on investments............................      0.000        0.000        0.000         --          0.000
                                                                   ---------     --------     --------     --------     --------
Total Distributions..............................................     (0.026)      (0.025)      (0.015)      (0.003)      (0.001)
                                                                   ---------     --------     --------     --------     --------
Net asset value, end of year.....................................  $   1.00      $  1.00      $  1.00      $  1.00      $  1.00
                                                                   =========     ========     ========     ========     ========
Total Return.....................................................      2.61%        2.48%        1.54%        0.33%        0.15%
Ratios/Supplemental Data
Net assets, end of year (000's)..................................  $  65,088     $ 56,603     $ 60,992     $  70,077    $  74,910
Ratios to average net assets:
  Expenses (net of fees waived) (a) .............................      1.00%        0.98%        0.93%        0.93%        0.93%
  Net investment income..........................................      2.55%        2.42%        1.51%        0.32%        0.15%
  Management & Administration fees waived........................       --          0.15%         --           --           --
  Shareholder servicing fees waived..............................       --           --           --          0.01%        0.02%
  Expenses paid indirectly.......................................      0.00%        0.00%        0.00%        0.00%        0.00%

</TABLE>

(a)      Includes expenses paid directly, if applicable.

-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------



===============================================================================

<TABLE>

8. Financial Highlights (continued)


                                                                                       Years Ended January 31,
                                                                   ------------------------------------------------------------
Class B shares                                                       2008          2007         2006        2005         2004
--------------                                                     --------       -------      ------      ------       -------
<S>                                                                 <C>          <C>          <C>          <C>          <C>
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year...............................   $   1.00      $  1.00      $  1.00      $  1.00      $  1.00
                                                                   ---------     --------     --------     --------     --------
Income from investment operations:
    Net investment income........................................      0.028        0.027        0.017        0.005        0.003
    Net realized and unrealized gain (loss)
      on investments.............................................      0.000        0.000        0.000         --          0.000
                                                                   ---------     --------     --------     --------     --------
    Total from investment operations.............................      0.028        0.027        0.017        0.005        0.003
Less distributions from:
    Dividends from net investment income.........................     (0.028)      (0.027)      (0.017)      (0.005)      (0.003)
    Net realized gains on investments............................      0.000        0.000        0.000         --          0.000
                                                                   ---------     --------     --------     --------     --------
Total Distributions..............................................     (0.028)      (0.027)      (0.017)      (0.005)      (0.003)
                                                                   ---------     --------     --------     --------     --------
Net asset value, end of year.....................................  $   1.00      $  1.00      $  1.00      $  1.00      $  1.00
                                                                   =========     ========     ========     ========     ========
Total Return.....................................................      2.81%        2.69%        1.75%        0.52%        0.33%
Ratios/Supplemental Data
Net assets, end of year (000's)..................................  $  20,736     $ 21,429     $ 25,192     $  25,482    $  22,735
Ratios to average net assets:
  Expenses (net of fees waived) (a) .............................      0.80%        0.78%        0.73%        0.74%        0.76%
  Net investment income..........................................      2.78%        2.62%        1.73%        0.54%        0.32%
  Management & Administration fees waived........................       --          0.15%         --           --           --
  Expenses paid indirectly.......................................      0.00%        0.00%        0.00%        0.00%        0.00%

</TABLE>

(a)      Includes expenses paid directly, if applicable.


-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
 CONNECTICUT DAILY TAX FREE INCOME FUND, INC
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

===============================================================================


To the Board of Directors and Shareholders of
Connecticut Daily Tax Free Income Fund, Inc.


In our opinion, the accompanying statement of assets and liabilities,  including
the schedule of  investments,  and the related  statements of operations  and of
changes  in net assets  and the  financial  highlights  present  fairly,  in all
material  respects,  the financial position of Connecticut Daily Tax Free Income
Fund,  Inc. (the "Fund") at January 31, 2008,  the results of its operations for
the year then ended,  the changes in its net assets for each of the two years in
the period then ended and the financial highlights for each of the five years in
the period  then ended,  in  conformity  with  accounting  principles  generally
accepted  in the  United  States of  America.  These  financial  statements  and
financial highlights  (hereafter referred to as "financial  statements") are the
responsibility  of the Fund's  management;  our  responsibility is to express an
opinion on these  financial  statements  based on our audits.  We conducted  our
audits of these  financial  statements in  accordance  with the standards of the
Public Company  Accounting  Oversight  Board (United  States).  Those  standards
require that we plan and perform the audit to obtain reasonable  assurance about
whether the financial  statements  are free of material  misstatement.  An audit
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements,  assessing the  accounting  principles
used and  significant  estimates made by management,  and evaluating the overall
financial  statement  presentation.  We believe that our audits,  which included
confirmation  of  securities  at January  31,  2008 by  correspondence  with the
custodian, provide a reasonable basis for our opinion.



PricewaterhouseCoopers LLP
New York, New York
March 28, 2008


-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION
(UNAUDITED)
===============================================================================

ADDITIONAL INFORMATION ABOUT PORTFOLIO HOLDINGS

The Fund is required to file its complete  schedule of portfolio  holdings  with
the  Securities  and Exchange  Commission  ("SEC") on Form N-Q for its first and
third fiscal  quarters.  The Fund's Form N-Q is available  without charge on the
SEC's  website  (http://www.sec.gov)  or by calling  the Fund toll free at (800)
433-1918.  You can also obtain  copies of the Fund's  Form N-Q by  visiting  the
SEC's  Public  Reference  Room in  Washington,  DC (please call the SEC at (800)
732-0330 for information on the operation of the Public Reference Room).

INFORMATION ABOUT PROXY VOTING

Information  regarding  the Fund's proxy  voting  record for the 12 month period
ending  June 30 of each year is filed  with the SEC on Form  N-PX no later  than
August 31 of each year. The Fund's Form N-PX is available  without charge,  upon
request,  by  calling  the  Fund at  (800)  433-1918  and on the  SEC's  website
(http//ww.sec.gov).  The Fund does not presently invest in voting securities and
has therefore not adopted proxy voting policies and procedures.

LONG TERM CAPITAL GAIN/TAX-EXEMPT INCOME DISTRIBUTION

On January 31,  2008,  the Fund paid a long-term  capital gain  distribution  of
$0.000040872 per share. The Fund paid tax-exempt  distributions in the amount of
$2,194,732 during the year ended January 31, 2008.

INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT

On March 11,  2008,  the Board of  Directors  approved  the  continuance  of the
Investment   Management   Contract.   In  determining  whether  to  approve  the
continuance of the Investment Management Contract,  the Directors considered the
following information:

     1)  The nature, extent and quality of services provided by the Manager.

The Board  reviewed in detail the nature and extent of the services  provided by
the Manager under the terms of the Corporation's  Investment Management Contract
and the quality of those  services over the past year.  The Board noted that the
services include  managing the investment and reinvestment of the  Corporation's
assets;  the  provision of reports to the Board  regarding  changes in portfolio
holdings,  important  developments  affecting the entities whose  securities are
included in the Corporation's  portfolio,  and the money market industry and the
economy  in  general;  and  the  compensation  of all  officers,  directors  and
employees of the  Corporation who are officers of the Manager or its affiliates.
The  Board  also  observed  that the  Manager  provides  various  administrative
services to the Corporation  pursuant to the terms of a separate  Administrative
Services  Contract  and  considered  the nature,  extent and quality of services
provided under that agreement as well. The Board  evaluated  these factors based
on their direct  experience with the Manager and in consultation with counsel to
the independent  directors and Corporation counsel. The Board concluded that the
nature and  extent of the  services  provided  under the  Investment  Management
Contract were reasonable and appropriate in relation to the management fee, that
the level of services  provided by the Manager had not diminished  over the past
year and that the quality of services  continues to be high.  The Board reviewed
the personnel responsible for providing advisory services to the Corporation and
concluded,  based on their experience and interaction with the Manager, that (i)
the Manager was able to retain quality  portfolio  managers and other personnel;
(ii) the Manager  exhibited a high level of diligence and attention to detail in
carrying  out its  advisory  responsibilities  under the  Investment  Management
Contract;  (iii) the Manager was  responsive to requests of the Board;  and (iv)
the  Manager  had  kept the  Board  apprised  of  developments  relating  to the
Corporation and the industry in general. The Board also focused on the Manager's
reputation  and   long-standing   relationship  with  the  Corporation  and,  in
particular,  the experience of the Manager in advising  money market funds.  The
Board also noted the high quality of services  provided by the Manager under the
Administrative Services Contract.

-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
===============================================================================

INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT, (continued)

     2)  The performance of the Corporation and the Manager.

The Board reviewed the investment  performance  of the  Corporation,  both on an
absolute  basis  and  as  compared  to  various  Lipper  peer  group  categories
("Performance Peer Groups") for the one-month,  one-, three-, five- and ten-year
periods ended September 30, 2007. The Performance Peer Groups were comprised of:
(i) an  asset-based  peer group of four retail  no-load  Connecticut  tax-exempt
money market  funds,  as classified  by Lipper;  (ii) a  competitors  class peer
group,  representing two other Connecticut tax free funds that are considered by
the Manager to be  competitors  of the  Corporation  with  similar  distribution
channels;  and (iii) a peer group of all funds in the Lipper  universe of retail
and institutional  Connecticut tax-exempt money market funds regardless of asset
size or primary channel of  distribution.  The Manager advised the Board that it
does not advise or subadvise:  (i) other funds with a similar  investment policy
to the Corporation's; or (ii) other types of accounts, such as institutional and
pension accounts,  with a similar  investment policy to the  Corporation's.  The
Board used the Corporation's  performance against its Performance Peer Groups to
provide  objective  comparative  benchmarks  against which they could assess the
Corporation's performance.  The Board considered those comparisons as helpful in
their  assessment as to whether the Manager was obtaining for the  Corporation's
shareholders  the performance  that was available in the  marketplace  given the
Corporation's investment objectives,  strategies,  limitations and restrictions.
In reviewing the Corporation's performance,  the Board and the Manager discussed
the  Manager's   conservative   style  and  its  impact  on  the   Corporation's
performance. The Board noted that the Corporation's performance was satisfactory
and, in particular,  the Board noted that the Corporation's  ranking against the
Lipper gross  performance  universe  was in the 2nd  quintile for the  one-month
period, 3rd quintile for the one-, three- and five-year periods and 4th quintile
for the ten-year period (lst quintile being the highest).

In connection with its assessment of the  performance of the Manager,  the Board
considered  the Manager's  financial  condition and whether it has the resources
necessary  to  continue  to  carry  out its  obligations  under  the  Investment
Management  Contract.  The Board took into account, in this regard, the payments
made by the Manager from its own  resources  to  securities  brokers,  banks and
financial  institutions or other industry  professionals or organizations  whose
customers are shareholders of the Corporation ("Participating Organizations") in
connection with distribution  assistance and shareholder  servicing  provided by
the  Participating  Organizations.  The Board concluded that the Manager had the
financial  resources  necessary to continue to perform its obligations under the
Investment  Management  Contract  and to continue  to provide  the high  quality
services that it had provided to the Corporation to date.


   3)  The  cost of the  advisory  services  and  the profits to the Manager and
      its affiliates from the relationship with the Corporation.

In connection with the Board's consideration of the level of the management fee,
the Board  considered a number of factors.  The Board  compared the level of the
management fee for the Corporation against the advisory fees charged to funds in
the Lipper  expense peer groups  ("Expense  Peer Groups") and the  Corporation's
combined  management-administrative fees against fees covering both advisory and
administrative  services  charged to the funds in the Expense Peer  Groups.  The
Expense Peer Groups were  comprised  of: (i) an  asset-based  peer group of four
retail  no-load  Connecticut  tax-exempt  money market  funds,  as classified by
Lipper; (ii) a competitors class peer group,  representing two other Connecticut
tax free funds that are  considered  by the  Manager  to be  competitors  of the
Corporation with similar  distribution  channels;  and (iii) a peer group of all
retail no-load Connecticut  tax-exempt money market funds in the Lipper universe
(excluding outliers).  The Board also considered comparative total fund expenses
of each class of the  Corporation  and the Expense Peer  Groups.  The Board used
this combined fee  information  and total expense data as a guide to help assess
the   reasonableness  of  the   Corporation's   management  fee,  although  they
acknowledged that it was difficult to make precise  comparisons with other funds
since the exact  nature of services  provided  under the Expense Peer Group fund
agreements is often not  apparent.  The Board also viewed the Expense Peer Group
fee  information  as a whole as useful in  assessing  whether  the  Manager  was
providing

-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------

INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT, (continued)


    3)   The cost of the  advisory  services  and the profits to the Manager and
         its affiliates from the relationship with the Corporation. (continued)

services at a cost that was competitive with other,  similar funds. In assessing
this  information,  the Board considered both the comparative  contract rates as
well as the level of the management  fees after waivers  and/or  reimbursements.
The Board noted that the contract rates of the  Corporations  management fee and
combined fees (management and  administrative)  were reasonable when compared to
the combined  fees of the Expense Peer Groups.  The Board noted that the Manager
did not advise or sub-advise any other registered  investment companies or other
types of  accounts,  such as  institutional  or pension  accounts,  with similar
investment  policies to the  Corporation.  The Board concluded that the level of
the management fee was reasonable in light of these factors.

The Board also  considered the  profitability  to the Manager and its affiliates
arising  out of their  relationships  with the  Corporation.  In this regard the
Board reviewed profitability data relating to the Manager and its affiliates for
the year ended December 31, 2006. The Board considered  revenues received by the
Manager under the Investment  Management  Contract and  Administrative  Services
Contract.  In reviewing the Manager's  profitability  reports, the Board and the
Manager discussed the Manager's associated costs and the impact of such costs on
the Manager's net  profitability.  The Board concluded that the profitability of
the Corporation to the Manager and its affiliates was not excessive.


     4)  The  extent  to  which  economies  of  scale  will  be  realized as the
         Corporation grows and whether fee levels reflect those economies of
         scale.

With  respect to the Boards'  consideration  of  economies  of scale,  the Board
discussed with the Manager whether economies of scale would be realized by it in
its  management  of the  Corporation  at higher  asset  levels.  The Board  also
discussed with the Manager whether certain of the Manager's costs would increase
if asset  levels  rise and  observed  that as assets  rise,  the Manager and its
affiliates may be required to pay increased fees to Participating Organizations.
The Board also  reviewed  the Peer Group data to assess  whether  the Peer Group
funds had advisory or  administrative  fee breakpoints and, if so, at what asset
levels. The Board concluded that they were unable to assess at this time whether
economies  of scale  would be  realized if the  Corporation  were to  experience
significant  asset growth.  In the event there were significant  asset growth in
the  future,  the Board  determined  to  reassess  whether  the  management  fee
appropriately took into account any economies of scale that had been realized as
a result of that growth.

     5)  Other Factors.

In addition to the above factors,  the Board  acknowledged the importance of the
ability of the Manager's affiliate,  the distributor,  to market the Corporation
through  its   distribution   networks,   including  its  customer  service  and
administration system with banks and bank customers.

Based on a  consideration  of all these  factors in their  totality,  the Board,
including all of the disinterested Directors,  determined that the Corporation's
management fee was fair and  reasonable  with respect to the quality of services
that the Manager provides and in light of the other factors described above that
the Board deemed  relevant.  The Board based their  decision on an evaluation of
all  these  factors  as  a  whole  and  did  not  consider  any  one  factor  as
all-important or controlling.  The disinterested Directors were also assisted by
the advice of independent counsel in making this determination.

-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
===============================================================================

<TABLE>

                                                  Directors and Officers Information
                                                          January 31, 2008(1)
---------------------- ----------- -------------- ------------------------------------ ---------------- ------------------

---------------------  Position(s)    Term of           Principal Occupation(s)           Number of            Other
  Name, Address(2),    Held with    Office and                During Past               Portfolios in      Directorships
       and Age            Fund       Length of                  5 Years                 Fund Complex          held by
                                       Time                                              Overseen by         Director
                                     Served(3)                                            Director
---------------------- ----------- -------------- ------------------------------------ ---------------- ------------------
------------------------- -------- -------------- ------------------------------------ ---------------- ------------------
Disinterested Directors:
------------------------- -------- -------------- ------------------------------------ ---------------- ------------------
---------------------- ------------ ------------- ------------------------------------ ---------------- ------------------
<S>                      <C>         <C>          <C>                                  <C>              <C>
 Albert R. Dowden,       Director    Since 2006   Corporate Director/Trustee for       Director/Trustee Director/Trustee
 Age 66                                           Annuity & Life Re (Holdings) Ltd.,   of seven           for Annuity &
                                                  Boss Group, Ltd., Homeowners of      portfolios            Life Re
                                                  American Holding Corporation, AIM                     (Holdings) Ltd.,
                                                  Funds and CompuDyne Corporation.                         Boss Group,
                                                                                                        Ltd., Homeowners
                                                                                                           of America
                                                                                                             Holding
                                                                                                        Corporation, AIM
                                                                                                            Funds and
                                                                                                            CompuDyne
                                                                                                          Corporation.
---------------------- ------------ ------------- ------------------------------------ ---------------- ------------------
---------------------- ------------ ------------- ------------------------------------ ---------------- ------------------
 Carl Frischling,        Director    Since 2006   Partner of Kramer Levin Naftalis &   Director/Trustee  Director of AIM
 Esq.,                                            Frankel LLP (a law firm) with        of seven              Funds.
 Age 70                                           which he has been associated with    portfolios
                                                  since 1994.
---------------------- ------------ ------------- ------------------------------------ ---------------- ------------------
---------------------- ------------ ------------- ------------------------------------ ---------------- ------------------
 Edward A. Kuczmarski,   Director    Since 2006   Certified Public Accountant and      Director/Trustee  Trustee of the
 Age 58                                           Partner of Hays & Company LLP        of eleven         Empire Builder
                                                  since 1980.                          portfolios         Tax Free Bond
                                                                                                              Fund
                                                                                                         and Director of
                                                                                                           ISI Funds.
---------------------- ------------ ------------- ------------------------------------ ---------------- ------------------
---------------------- ------------ ------------- ------------------------------------ ---------------- ------------------
 William Lerner, Esq.,   Director    Since 2006   Self-employed consultant to          Director/Trustee   Director of MTM
 Age 71                                           business entities and                of seven         Technologies, Inc.
                                                  entrepreneurs for corporate          portfolios            and Coach
                                                  governance and corporate                               Industries Group,
                                                  secretarial services.                                        Inc.
---------------------- ------------ ------------- ------------------------------------ ---------------- ------------------
---------------------- ------------ ------------- ------------------------------------ ---------------- ------------------
 Dr. W. Giles Mellon,    Director    Since 1987   Professor Emeritus of Business       Director/Trustee        N/A
 Age 76                                           Administration in the Graduate       of ten portfolios
                                                  School of Management, Rutgers
                                                  University with which he has been
                                                  associated with since 1966.
---------------------- ------------ ------------- ------------------------------------ ---------------- ------------------
---------------------- ------------ ------------- ------------------------------------ ---------------- ------------------
 James L. Schultz,       Director    Since 2006   Self-employed as a consultant.       Director/Trustee    Director of
 Age 71                                                                                of seven             Computer
                                                                                       portfolios        Research, Inc.
---------------------- ------------ ------------- ------------------------------------ ---------------- ------------------

</TABLE>
-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------



===============================================================================

<TABLE>

                                                Directors and Officers Information
                                                       January 31, 2008(1)
---------------------- ----------- -------------- ----------------------------------- ---------------- -------------------

---------------------  Position(s)    Term of          Principal Occupation(s)           Number of            Other
  Name, Address(2),    Held with    Office and               During Past               Portfolios in      Directorships
       and Age            Fund       Length of                 5 Years                 Fund Complex          held by
                                       Time                                             Overseen by          Director
                                     Served(3)                                           Director
---------------------- ----------- -------------- ----------------------------------- ---------------- -------------------
------------------------------- -- -------------- ----------------------------------- ---------------- -------------------
Disinterested Directors (continued):
------------------------------- -- -------------- ----------------------------------- ---------------- -------------------
---------------------- ----------- -------------- ----------------------------------- ---------------- -------------------
<S>                      <C>         <C>          <C>                                  <C>              <C>
 Robert Straniere,      Director    Since 1987    Owner, Straniere Law Firm since     Director/Trustee Director of Sparx
 Esq., Age 66                                     1980, NYS Assemblyman from 1981 to  of ten portfolios   Japan Funds
                                                  2004. Partner, Hantor-Davidoff law
                                                  firm since May, 2006. Partner,
                                                  Gotham Global Group since June,
                                                  2005. President, NYC Hot Dog Co.,
                                                  since November, 2005. Counsel at
                                                  Fisher & Fisher from 1995 to 2006.
---------------------- ----------- -------------- ----------------------------------- ---------------- -------------------
---------------------- ----------- -------------- ----------------------------------- ---------------- -------------------
 Dr. Yung Wong,         Director    Since 1987    Managing Director of Abacus         Director/Trustee        N/A
 Age 69                                           Associates, an investment firm,     of ten
                                                  since 1996.                         portfolios
---------------------- ----------- -------------- ----------------------------------- ---------------- -------------------


</TABLE>







-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
===============================================================================

<TABLE>

                                            Directors and Officers Information (continued)
                                                          January 31, 2008(1)
-------------------- ------------- -------------- ---------------------------------------- ---------------- --------------

-------------------  Position(s)      Term of             Principal Occupation(s)             Number of          Other
 Name, Address(2),    Held with     Office and                  During Past                 Portfolios in    Directorships
      and Age            Fund        Length of                    5 Years                   Fund Complex        held by
                                       Time                                                  Overseen by       Director
                                     Served(3)                                                Director
-------------------- ------------- -------------- ---------------------------------------- ---------------- --------------
-------------------------------------- --------------- ------------ ---------------------- ----------- -------------------
Interested Directors/Officers:
-------------------------------------- --------------- ------------ ---------------------- ----------- -------------------
--------------------- ------------ -------------- ---------------------------------------- ---------------- --------------
<S>                      <C>         <C>            <C>                                    <C>                <C>
Steven W. Duff,       Director(4)   Since 1994    President and Chief Executive Officer    Director/Trustee     None
Age 54                                            of Reich & Tang Asset Management, LLC    of ten
                      President    1994 to 2007   ("RTAM, LLC"), a registered Investment   portfolios
                      and                         Advisor and Chief Investment Officer of
                      Director                    the Mutual Funds Division of RTAM,
                                                  LLC.  Associated with RTAM, LLC since
                                                  1994.  Mr. Duff is also
                                                  Director/Trustee of six other funds in
                                                  the Reich & Tang Fund Complex. Prior to
                                                  December 2007 Mr. Duff was President of
                                                  the Fund and President and
                                                  Director/Trustee of eight other funds
                                                  in the Reich & Tang Fund Complex,
                                                  Principal Executive Officer of
                                                  Delafield Fund, Inc., and President and
                                                  Chief Executive Officer of Tax Exempt
                                                  Proceeds Fund, Inc. Mr. Duff also
                                                  serves as a Director of Reich & Tang
                                                  Services, Inc. and Director, Chief
                                                  Executive Officer and President of
                                                  Reich & Tang Distributors, Inc.
--------------------- ------------ -------------- ---------------------------------------- ---------------- --------------
--------------------- ------------ -------------- ---------------------------------------- ---------------- --------------
Michael P. Lydon,     Director      Since 2007    President and Chief Executive Officer    Director/Trustee      N/A
Age 44                                            of the Mutual Funds division of RTAM,        of nine
                                                  LLC and Executive Vice President of        portfolios
                                                  RTAM, LLC.  Associated with RTAM, LLC
                                                  since January 2005.  Mr. Lydon was
                                                  Vice President at Automatic Data
                                                  Processing from July 2000 to December
                                                  2004.  Mr. Lydon is also President and
                      Vice          2005 - 2007   Director of four other funds in the
                      President                   Reich & Tang Fund Complex, President
                                                  of New York Daily Tax Free Income
                                                  Fund, Inc., Director of PAX World
                                                  Money Market Fund, Inc., Principal
                                                  Executive Officer of Delafield Fund,
                                                  Inc., and President and Chief
                                                  Executive Officer of Tax Exempt
                                                  Proceeds Fund, Inc.  Mr. Lydon also
                                                  serves as President and Chief
                                                  Executive Officer of Reich & Tang
                                                  Services, Inc.  Prior to 2007, Mr.
                                                  Lydon was Vice President of twelve
                                                  other Funds in the Reich & Tang Fund
                                                  Complex.
--------------------- ------------ -------------- ---------------------------------------- ---------------- --------------

</TABLE>
-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------



===============================================================================

<TABLE>

                                             Directors and Officers Information (continued)
                                                           January 31, 2008(1)
--------------------- ------------ ---------------- ----------------------------------------- --------------- ------------

--------------------   Position(s)      Term of             Principal Occupation(s)             Number of         Other
 Name, Address(2),      Held with     Office and                  During Past                 Portfolios in   Directorships
      and Age             Fund         Length of                    5 Years                    Fund Complex      held by
                                    Time Served(3)                                             Overseen by      Director
                                                                                                 Director
--------------------- ------------ ---------------- ----------------------------------------- --------------- ------------
-------------------------------------- ------------ --------------- ----------------- ---------------- -------------------
Interested Directors/Officers (continued):
--------------------- ------------ ---------------- ----------------------------------------- --------------- ------------
<S>                      <C>         <C>             <C>                                          <C>              <C>
Christopher Brancazio,Chief          Since 2007      Vice President, Chief Compliance              N/A            N/A
Age 42                Compliance                     Officer and AML Officer of RTAM, LLC
                      Officer                        since September 2007. Mr. Brancazio is
                                                     also Chief Compliance Officer of eight
                                                     other funds in the Reich & Tang Fund
                                                     Complex.  From February 2007 to August
                                                     2007, Mr. Brancazio was a Compliance
                                                     Officer at Bank of New York Asset
                                                     Management.  From March 2002 to
                                                     February 2007 Mr. Brancazio served as
                                                     Vice President, Chief Compliance
                                                     Officer, and AML Officer of Trainer
                                                     Wortham & Co. Inc., and the Trainer
                                                     Wortham Mutual Funds.  Mr. Brancazio
                                                     also serves as Vice President, Chief
                                                     Compliance Officer and AML Officer of
                                                     Reich & Tang Services, Inc. and Reich
                                                     & Tang Distributors, Inc.
--------------------- ------------ ---------------- ----------------------------------------- --------------- ------------
--------------------- ------------ ---------------- ----------------------------------------- --------------- ------------
Richard De Sanctis,   Vice           Since 2005     Chief Operating Officer and Executive          N/A            N/A
Age 51                President                     Vice President of RTAM LLC and Reich &
                                                    Tang Services, Inc.  Associated with
                      Treasurer                     RTAM, LLC since 1990.  Mr. De Sanctis is
                      and           1992 to 2004    Vice President of eight other funds in
                      Assistant                     the Reich & Tang Fund Complex, and
                      Secretary                     serves as Executive Vice President and
                                                    Chief Financial Officer of Reich & Tang
                                                    Distributors, Inc.  Prior to December
                                                    2004, Mr. De Sanctis was Treasurer and
                                                    Assistant Secretary of eleven funds in
                                                    the Reich & Tang Fund Complex and Vice
                                                    President, Treasurer and Assistant
                                                    Secretary of Cortland Trust, Inc.
--------------------- ------------ ---------------- ----------------------------------------- --------------- ------------
--------------------- ------------ ---------------- ----------------------------------------- --------------- ------------
Christine Manna,      Secretary      Since 2007     Vice President and Secretary of RTAM,          N/A            N/A
Age 37                                              LLC. Ms. Manna is also Secretary of
                                                    eight other funds in the Reich & Tang
                                                    Complex. Ms. Manna has been associated
                                                    with RTAM, LLC and its predecessors
                                                    since June 1995. Ms. Manna is also a
                                                    Vice President of Reich & Tang Services,
                                                    Inc. and Reich & Tang Distributors, Inc.
--------------------- ------------ ---------------- ----------------------------------------- --------------- ------------

</TABLE>
-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
===============================================================================

<TABLE>
                                             Directors and Officers Information (continued)
                                                           January 31, 2008(1)
-------------------- ------------- --------------- ------------------------------------------ --------------- ------------

-------------------  Position(s)      Term of               Principal Occupation(s)             Number of         Other
 Name, Address(2),    Held with      Office and                   During Past                 Portfolios in   Directorships
      and Age            Fund        Length of                      5 Years                    Fund Complex      held by
                                   Time Served(3)                                              Overseen by      Director
                                                                                                 Director
-------------------- ------------- --------------- ------------------------------------------ --------------- ------------
-------------------------------------- ----------- ---------------- ----------------- ---------------- -------------------
Interested Directors/Officers (continued):
-------------------- ------------- --------------- ------------------------------------------ --------------- ------------
<S>                      <C>         <C>             <C>                                          <C>              <C>
Dana E. Messina,     Vice            Since 1989    Executive Vice President of RTAM, LLC.          N/A            N/A
Age 51               President                     Associated with RTAM, LLC since 1980.
                                                   Ms. Messina is also Vice President of
                                                   six other funds in the Reich & Tang Fund
                                                   Complex.  Ms. Messina also serves as
                                                   Executive Vice President of Reich & Tang
                                                   Distributors, Inc.
-------------------- ------------- --------------- ------------------------------------------ --------------- ------------
-------------------- ------------- --------------- ------------------------------------------ --------------- ------------
Anthony Pace,        Treasurer       Since 2004    Vice President of RTAM, LLC since               N/A            N/A
Age 42               and                           September 2004.  Mr. Pace was a Director
                     Assistant                     of a Client Service Group at GlobeOp
                     Secretary                     Financial Services, Inc. from May 2002
                                                   to August 2004 and Controller/Director
                                                   of Mutual Fund Administration for Smith
                                                   Barney Funds Management LLC and Salomon
                                                   Brothers Asset Management Inc. from 1998
                                                   to May 2002.  Mr. Pace is also Treasurer
                                                   and Assistant Secretary of eight other
                                                   funds in the Reich & Tang Fund Complex.
-------------------- ------------- --------------- ------------------------------------------ --------------- ------------
-------------------- ------------- --------------- ------------------------------------------ --------------- ------------
Robert Rickard,      Vice            Since 2007    Senior Vice President of RTAM LLC.              N/A            N/A
Age 38               President                     Associated with RTAM, LLC since December
                                                   1991. Mr. Rickard is also Vice President
                                                   of eight other funds in the Reich & Tang
                                                   Fund Complex.
-------------------- ------------- --------------- ------------------------------------------ --------------- ------------

</TABLE>

(1)  The Statement of Additional  Information  includes  additional  information
     about   Connecticut   Daily  Tax  Free  Income  Fund,   Inc.  (the  "Fund")
     directors/officers  and is  available,  without  charge,  upon  request  by
     calling the Fund's transfer agent at (800) 433-1918.

(2)  The address for each of the above directors/officers of the Fund is Reich &
     Tang Asset Management, LLC, 600 Fifth Avenue, New York, NY 10020.

(3)  Each Director will hold office for an indefinite term until the earliest of
     (i) the next  meeting of  shareholders,  if any,  called for the purpose of
     considering  the  election or  re-election  of such  Director and until the
     election and qualification of his or her successor, if any, elected at such
     meeting,  or (ii) the date a Director resigns or retires,  or a Director is
     removed by the Board of Directors or  shareholders,  in accordance with the
     Fund's  Articles of  Incorporation,  as amended,  and Amended and  Restated
     By-Laws.  Each  officer will hold office for an  indefinite  term until the
     date he or she resigns or retires or until his/her successor is elected and
     qualifies.

(4)  Steven  W.  Duff is  deemed  an  interested  person  of the Fund due to his
     affiliation with RTAM, LLC, the Fund's investment advisor.

-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------





------------------------------------------------------
This report is submitted for the general information          CONNECTICUT
of the shareholders of the Fund. It is not                    DAILY
authorized for distribution to prospective investors          TAX FREE
in the Fund unless preceded or accompanied by an              INCOME
effective prospectus, which includes information              FUND, INC.
regarding the Fund's objectives and policies,
experience of its management, marketability of
shares, and other information.
------------------------------------------------------





Connecticut Daily Tax Free Income Fund, Inc.
     600 Fifth Avenue
     New York, New York 10020


Manager
     Reich & Tang Asset Management, LLC
     600 Fifth Avenue
     New York, New York 10020


Custodian
     The Bank of New York Mellon
     2 Hanson Place, 7th Floor
     Brooklyn, New York 11217


Transfer Agent &
  Dividend Disbursing Agent                                Annual Report
     Reich & Tang Services, Inc.                          January 31, 2008
     600 Fifth Avenue
     New York, New York 10020


Distributor
     Reich & Tang Asset Distributor, Inc.
     600 Fifth Avenue
     New York, New York 10020


CT1/08A


-------------------------------------------------------------------------------
<PAGE>

ITEM 2: CODE OF ETHICS

The registrant has adopted a Code of Ethics applicable to its Principal
Executive and Senior Financial Officers.

ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT

The registrant's Board of Directors has determined that there is an audit
committee financial expert serving on its audit committee, Edward A. Kuczmarski,
who is "independent," as defined in the instructions to this Item.

ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES

<TABLE>
<CAPTION>
                                    FYE 1/31/2008                      FYE 1/31/2007

<S>                                 <C>                                <C>
4(a)     Audit Fees                 $31,000                            $29,000
4(b)     Audit Related Fees         $     0                            $     0
4(c)     Tax Fees                   $ 4,000                            $ 3,750
4(d)     All Other Fees             $     0                            $     0
</TABLE>

4(e)(1) The audit committee has adopted pre-approval policies and procedures
whereby the audit committee has pre-approved the provision of certain enumerated
tax services to the registrant by the registrant's principal accountant to the
extent the fee is less than $5,000 per occurrence.

4(e)(2) None

4(f) Not applicable.

4(g) $4,000 and $52,950, respectively, were the amount of non-audit fees
that were billed by the registrant's accountant for services rendered to (i) the
registrant, and (ii) the registrant's investment adviser and any control person
of the adviser that provides ongoing services to the registrant for the fiscal
year ended January 31, 2008. $3,750 and $49,500, respectively, were the amount
of non-audit fees that were billed by the registrant's accountant for services
rendered to (i) the registrant, and (ii) the registrant's investment adviser and
any control person of the adviser that provides ongoing services to the
registrant for the fiscal year ended January 31, 2007.

4(h) The registrant's audit committee has considered whether its principal
accountant's provision of non-audit services that were rendered to the
registrant's investment adviser, and any control persons of the investment
adviser that provides ongoing services to the registrant, that were not
pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is
compatible with maintaining the principal accountant's independence.

ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6: SCHEDULE OF INVESTMENTS

Schedule of Investments in securities of unaffiliated issuers is included under
Item 1.
<PAGE>
ITEM 7: DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
        MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8: PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
        COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 9: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors that were implemented
after the registrant last provided disclosure in response to the requirements of
Item 7(d)(2)(ii)(G) of Schedule 14A, or this Item 9.

ITEM 10: CONTROLS AND PROCEDURES

(a)  The registrant's Principal Executive Officer and Principal Financial
     Officer have evaluated the design and operation of the registrant's
     disclosure controls and procedures within 90 days of this filing and have
     concluded that the registrant's disclosure controls and procedures were
     effective in ensuring that information required to be disclosed by the
     registrant in this Form N-CSR was recorded, processed, summarized and
     reported on a timely basis.

(b)  There were no changes in the registrant's internal controls over financial
     reporting that occurred during the registrants second fiscal quarter of the
     period covered by this report that have materially affected, or are
     reasonably likely to affect, the registrant's internal controls over
     financial reporting.

ITEM 11:   EXHIBITS

     (a)(1) Code of Ethics.

     (a)(2) Certifications of Principal Executive Officer and Principal
          Financial Officer, under Rule 30a-2 of the Investment Company Act of
          1940.

     (a)(3) Not applicable.

     (b)  Certifications of Principal Executive Officer and Principal Financial
          Officer, under Section 906 of the Sarbanes-Oxley Act of 2002 and 18
          U.S.C. ss.1350.
<PAGE>
         SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized. (Registrant)
Connecticut Daily Tax Free Income Fund, Inc.

By (Signature and Title)* /s/ Christine Manna
                              Christine Manna, Secretary
Date: April 9, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By (Signature and Title)* /s/ Michael P. Lydon
                              Michael P. Lydon, President
Date: April 9, 2008

By (Signature and Title)* /s/ Anthony Pace
                              Anthony Pace, Treasurer
Date: April 9, 2008

*    Print the name and title of each signing officer under his or her
     signature.