As filed with the Securities and Exchange Commission on July 9, 2008
                                    Investment Company Act File Number 811-3955




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

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


                    NEW YORK 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:  April 30

Date of reporting period: April 30, 2008
<PAGE>
ITEM 1: REPORT TO STOCKHOLDERS

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

Dear Shareholder:

We are  pleased to present  the annual  report of New York Daily Tax Free Income
Fund,  Inc.  (the "Fund") for the year ended April 30, 2008.

As of April 30, 2008 the Fund had net assets of $400,366,335.

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

Sincerely,


[GRAPHIC OMITTED]


Michael P. Lydon
President


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NEW YORK DAILY TAX FREE INCOME FUND, INC.
EXPENSE CHART
FOR THE SIX MONTHS ENDED APRIL 30, 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 November 1, 2007 through April 30, 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.


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<PAGE>
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===============================================================================

<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------------------------

                                        Beginning Account   Ending Account Value    Expenses Paid       Annualized
           Class A Shares                 Value 11/1/07            4/30/08        During the Period  Expense Ratio (a)
-----------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                     <C>                   <C>                <C>
  Actual                                    $1,000.00              $1,010.40            $4.30              0.86%
-----------------------------------------------------------------------------------------------------------------------
  Hypothetical (5% return before            $1,000.00              $1,020.59            $4.32              0.86%
  expenses)
-----------------------------------------------------------------------------------------------------------------------

                                        Beginning Account   Ending Account Value    Expenses Paid    Annualized
           Class B Shares                 Value 11/1/07            4/30/08        During the Period  Expense Ratio (a)
-----------------------------------------------------------------------------------------------------------------------
  Actual                                    $1,000.00             $1,011.40             $3.30              0.66%
-----------------------------------------------------------------------------------------------------------------------
  Hypothetical (5% return before            $1,000.00             $1,021.58             $3.32              0.66%
  expenses)
-----------------------------------------------------------------------------------------------------------------------

                                        Beginning Account   Ending Account Value    Expenses Paid       Annualized
          Advantage Shares                Value 11/1/07            4/30/08        During the Period  Expense Ratio (a)
-----------------------------------------------------------------------------------------------------------------------
  Actual                                    $1,000.00              $1,009.60            $5.10              1.02%
-----------------------------------------------------------------------------------------------------------------------
  Hypothetical (5% return before            $1,000.00              $1,019.79            $5.12              1.02%
  expenses)
-----------------------------------------------------------------------------------------------------------------------

</TABLE>

(a)  Expenses are equal to the Fund's  annualized  expense ratios  multiplied by
     the average  account value over the period  (November 1, 2007 through April
     30,  2008),  multiplied  by 182/366  (to  reflect  the most  recent  fiscal
     half-year).

<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
APRIL 30, 2008
===============================================================================

<TABLE>


                                                                                                                     Ratings (a)
                                                                                                                   ----------------
   Face                                                                         Maturity   Current      Value              Standard
  Amount                                                                          Date    Coupon (b)  (Note 1)     Moody's & Poor's
---------                                                                         ----    ----------  --------     ------- --------
Tax Exempt Commercial Paper (2.00%)
-----------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                                <C>        <C>     <C>               <C>      <C>
$ 5,000,000  New York Metropolitan Transportation Authority
             LOC ABN AMRO Bank N. A.                                            08/12/08    3.05%  $  5,000,000       P-1      A-1+
  3,000,000  New York State Environmental Quality
             LOC Bayerische Landesbank / Landesbank Hessen                      07/03/08    1.85      3,000,000       P-1      A-1+
-----------                                                                                        ------------
  8,000,000  Total Tax Exempt Commercial Paper                                                        8,000,000
-----------                                                                                        ------------
Tax Exempt General Obligation Notes & Bonds (c) (25.02%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000  Altmar-Parish-Williamstown CSD Oswego County, NY BAN               07/18/08    3.70%  $  3,001,845
  1,134,423  Bethlehem CSD Albany County, NY CSD BAN                            07/31/08    3.72      1,135,182
  7,000,000  Board of Cooperative Education Services Sole Supervisory District
             Counties of Cattaraugus, Allehany, Erie & Wyoming, NY RAN          06/30/08    2.95      7,003,394
  8,000,000  Clarence CSD Erie County, NY TAN - Series 2007                     06/26/08    3.71      8,003,480
  2,720,500  Clarence CSD Erie County, NY BAN - Series 2007                     07/24/08    3.71      2,722,270
 10,000,000  Commack Union Free School District Suffolk County, NY TAN          06/30/08    3.66     10,005,398
  5,500,000  Copiague Union Free School District Suffolk County, NY TAN         06/27/08    3.75      5,502,946
  4,500,000  East Ramapo CSD Rockland County, NY CSD RAN - Series 2007          06/19/08    3.70      4,501,741
  2,400,000  Eastchester Union Free School District Westchester County, NY BAN  07/11/08    3.71      2,402,421
 13,750,000  Elmira City School District Chemung County, NY BAN                 03/19/09    2.08     13,829,574
  2,850,000  Hornell City School District Steuben County, NY RAN - Series 2007  06/19/08    3.70      2,852,022
  5,000,000  Hudson Falls CSD Washington County, NY BAN - Series 2007           06/27/08    3.74      5,003,823
  1,983,647  Lakeland CSD of Shrub Oak Westchester County, NY BAN               12/19/08    2.25      1,992,924
  2,500,000  Livingston County, NY BAN                                          02/13/09    1.82      2,517,951
 10,000,000  Middle Country CSD Suffolk County, NY TAN                          06/30/08    3.63     10,005,885
  2,572,537  North Syracuse CSD Onondaga County, NY BAN - Series 2007           08/22/08    3.65      2.577,129
  2,500,000  Oneonta, NY CSD BAN                                                07/09/08    2.99      2,504,874
  1,600,000  Pawling, NY CSD BAN                                                12/12/08    3.00      1,607,150
  4,500,000  Pearl River Union Free School District Rockland County, NY         06/26/08    3.71      4,503,579
  1,490,000  Plainedge Union Free School District Nassau County, NY TAN         07/30/08    3.72      1,491,004
  6,000,000  Tompkins-Seneca-Tioga, NY (Board of Cooperative Educational
             Services Sole Supervisory District) RAN                            06/30/08    3.88      6,003,539
  1,018,719  Victor CSD Ontario, Monroe & Wayne Counties, NY  - Series 2007     06/15/08    3.65      1,019,266
-----------                                                                                        ------------
100,019,826  Total Tax Exempt General Obligation Notes & Bonds                                      100,187,397
-----------                                                                                        ------------

</TABLE>
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The accompanying notes are an integral part of these 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 (d) (72.85%)
-----------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                                <C>        <C>     <C>               <C>      <C>
$ 7,670,000  ABN AMRO MuniTops Certificates Trust - Series 2002-33 (Port Authority
             of New York and New Jersey Consolidated Bonds - 128th Series)
             Insured by FSA                                                     11/01/10    2.43%  $  7,670,000     VMIG-1
  6,000,000  BB & T Municipal Trust Floater Certificates - Series 1007
             LOC Branch Banking And Trust Company                               12/18/27    2.55      6,000,000     VMIG-1
  1,370,000  BB & T Municipal Trust Floater Certificates - Series 4000
             (Relating to Louisiana Public Facilities Authority Equipment and
             Capital Facilities Pooled Loan Program RB - Series 2003A)
             LOC Branch Banking And Trust Company                               07/01/18    2.53      1,370,000     VMIG-1
  5,000,000  Clinton County, NY IDA Civic Facility RB (Champlain Valley
             Physician's Hospital Medical Center Project) - Series 2006 A
             LOC KeyBank, N.A.                                                  07/01/17    2.35      5,000,000     VMIG-1
  5,000,000  Clinton County, NY IDA Civic Facility RB (Champlain Valley
             Physician's Hospital Medical Center Project) - Series 2007 A
             LOC KeyBank, N.A.                                                  07/01/42    2.40      5,000,000                A-1
  1,900,000  Dutchess County, NY IDA Civic Facility RB (Marist College
             Civic Facility Project) - Series 2005 A
             LOC Bank of New York Mellon                                        07/01/35    2.20      1,900,000                A-1+
 12,155,000  Eagle Tax-Exempt Trust - Series 963206
             (New York State Urban Development Corporation Project)
             Collateralized by U.S. Government Securities                       07/01/16    2.43     12,155,000                A-1+
  5,800,000  Eagle Tax - Exempt Trust - Series 20070157 Class A Certificates
             (New York City Municipal Water Finance Authority
             Water and Sewer System RB - Fiscal 2006 Series A)                  06/15/39    2.41      5,800,000                A-1
  2,050,000  Erie County, NY IDA (Hauptman-Woodward Project) - Series 2004
             LOC KeyBank, N.A.                                                  03/01/24    2.49      2,050,000       P-1      A-1
  2,890,000  Erie County, NY IDA Civic Facility RB
             (Aspire of Western New York,  Inc. Project) - Series 2008 (c)
             LOC KeyBank, N.A.                                                  01/01/18    2.49      2,890,000
  5,000,000  Floating Rate Trust Receipts - Series 2006-K1 (New York State
             Dormitory Authority, Columbia University RB - Series 2006A)        07/01/26    2.82      5,000,000     VMIG-1
    900,000  Forest City New Rochelle, NY RB Certificate Trust - Series 2003
             LOC Wachovia Bank, N.A.                                            06/01/11    2.50        900,000     VMIG-1

</TABLE>
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The accompanying notes are an integral part of these financial statements.
<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008
===============================================================================

<TABLE>

                                                                                                                     Ratings (a)
                                                                                                                   ----------------
   Face                                                                         Maturity   Current      Value              Standard
  Amount                                                                          Date    Coupon (b)  (Note 1)     Moody's & Poor's
---------                                                                         ----    ----------  --------     ------- --------

Variable Rate Demand Instruments (d) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                                <C>        <C>     <C>               <C>      <C>
$ 3,665,000  Lehman Municipal Trust Receipts
             Floating Rate Trust Receipts - Series 2005 M-2
             (Dormitory Authority of the State of New York Hospital Insured
             Mortgage RB 2004 Series A)
             Insured by FSA                                                     02/15/13    5.45%  $  3,665,000     VMIG-1
  3,300,000  Lehman Municipal Trust Receipts Series 2007 Floating Rate
             Trust Receipts - Series P69W (New Hampshire State Housing
             Finance Authority Single Family Mortgage Acquistion RB)            07/01/39    3.18      3,300,000     VMIG-1
  3,575,000  Long Island Power Authority, NY Electric System
             Subordinated RB Subseries 2
             LOC State Street Bank & Trust Company/Westdeutsche Landesbank      05/01/33    2.70      3,575,000     VMIG-1     A-1+
  1,900,000  Metropolitan Transportation Authority, NY
             Transportation RB - Series 2005E-1
             LOC Fortis Bank                                                    11/01/35    2.20      1,900,000     VMIG-1     A-1+
 13,000,000  Metropolitan Transportation Authority, NY
             Transportation RB - Series 2005E-2
             LOC Fortis Bank                                                    11/01/35    2.35     13,000,000     VMIG-1     A-1+
  3,000,000  Monroe County, NY IDA Civic Facilities RB
             (Depaul Properties, Inc. Project) - Series 2006
             LOC KeyBank, N.A.                                                  06/01/26    2.35      3,000,000     VMIG-1
  2,000,000  Morgan Stanley Floating Rate Trust Certificates - Series 2006-1492
             (Dormitory Authority of the State of New York RB
             Cabrini of Westchester Project, Series 2006A)
             Collateralized by GNMA Securities                                  02/15/41    2.46      2,000,000                A-1
  5,095,000  Nassau County, NY IDA IDRB
             (The Jade Corporation Project) - Series 2007
             LOC Wilmington Trust Company                                       08/01/32    2.53      5,095,000     VMIG-1
  3,400,000  Newburgh, NY IDA Civil Facility RB (Community Development
             Properties Dubois St. II Inc. Project) - Series 2005A
             LOC KeyBank, N.A.                                                  10/01/30    2.45      3,400,000     VMIG-1
  1,000,000  New York City, NY Capital Resource Corporation RB
             (Loan Enhanced Assistance Program) - Sereis 2006A
             LOC Bank of America                                                01/01/26    2.39      1,000,000     VMIG-1
  1,400,000  New York City, NY GO - Fiscal 1994, Series A-5
             LOC KBC Bank                                                       08/01/15    2.29      1,400,000     VMIG-1     A-1+
    400,000  New York City, NY GO - Fiscal 1994, Series A-5
             LOC KBC Bank                                                       08/01/16    2.29        400,000     VMIG-1     A-1

</TABLE>

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The accompanying notes are an integral part of these 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 (d) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                                <C>        <C>     <C>               <C>      <C>
$ 4,575,000  New York City, NY GO - Fiscal 1994, Series A-6
             LOC Landesbank Hessen - Thuringen Girozentrale                     08/01/19    2.70%  $  4,575,000     VMIG-1     A-1+
  8,770,000  New York City, NY GO - Fiscal 1994 Series A-9
             LOC JPMorgan Chase Bank, N.A.                                      08/01/18    2.65      8,770,000     VMIG-1     A-1+
  1,900,000  New York City, NY GO - Fiscal 1994, Series B-9
             LOC JPMorgan Chase Bank, N.A.                                      08/15/23    3.00      1,900,000     VMIG-1     A-1+
    700,000  New York City, NY GO - Fiscal 1995 , Series F-2
             LOC Depfa Bank PLC                                                 02/15/12    2.35        700,000     VMIG-1     A-1+
  4,000,000  New York City, NY GO - Fiscal 1995, Series F-3
             LOC Morgan Guaranty Trust Company                                  02/15/13    2.42      4,000,000     VMIG-1     A-1+
  5,650,000  New York City, NY GO - Fiscal 2003 Series C-5
             LOC Bank of New York Mellon                                        08/01/20    2.45      5,650,000     VMIG-1     A-1+
  6,060,000  New York City, NY GO - Fiscal 2004, Series A-3
             LOC BNP Paribas                                                    08/01/31    2.60      6,060,000     VMIG-1     A-1+
  1,770,000  New York City, NY GO - Fiscal 2004 Series A-6
             LOC Landesbank Baden - Wurttemberg                                 08/01/31    2.45      1,770,000     VMIG-1     A-1+
  2,505,000  New York City, NY GO - Fiscal 2004 Series H-2
             LOC Bank of New York Mellon                                        03/01/34    2.46      2,505,000     VMIG-1     A-1+
  1,075,000  New York City, NY GO - Fiscal 2006 Series E-3
             LOC Bank of America                                                08/01/34    2.37      1,075,000     VMIG-1     A-1+
  5,000,000  New York City, NY GO - Fiscal 2006 Series F-3
             LOC Royal Bank of Scotland PLC                                     09/01/35    2.20      5,000,000     VMIG-1     A-1+
    700,000  New York City, NY GO - Fiscal 2006 Series I-3                      04/01/36    2.53        700,000     VMIG-1     A-1+
  3,000,000  New York City, NY GO - Fiscal 2006 Series I-8
             LOC Bank of America                                                04/01/36    2.55      3,000,000     VMIG-1     A-1+
  2,400,000  New York City, NY HDC Multi-Family Mortgage RB
             (Manhattan Court Development) - 2004 Series A
             LOC Citibank, N.A.                                                 06/01/36    2.63      2,400,000                A-1+
  6,300,000  New York City, NY HDC Multi-Family Mortgage RB
             (Urban Horizons II-A) - 2005 Series A
             LOC Citibank, N.A.                                                 01/01/38    2.55      6,300,000                A-1+
  1,000,000  New York City, NY HDC Multi-Family Mortgage RB
             (West 48th Street Development) - 2001 Series A
             Guaranteed by Federal National Mortgage Association                01/15/34    2.52      1,000,000                A-1+

</TABLE>

-------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
-------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008
===============================================================================

<TABLE>


                                                                                                                     Ratings (a)
                                                                                                                   ----------------
   Face                                                                         Maturity   Current      Value              Standard
  Amount                                                                          Date    Coupon (b)  (Note 1)     Moody's & Poor's
---------                                                                         ----    ----------  --------     ------- --------

Variable Rate Demand Instruments (d) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                                <C>        <C>     <C>               <C>      <C>
$ 4,000,000  New York City, NY HDC Multi-Family Rental Housing RB
             (90 West St) - 2006 Series A
             Guaranteed by Federal National Mortgage Association                03/15/36    2.60%  $  4,000,000                A-1+
    980,000  New York City, NY IDA Civic Facility RB
             (Epiphany Community Nursery School Project) - Series 1997
             LOC Bank of New York Mellon                                        05/01/11    2.58        980,000     VMIG-1
  4,285,000  New York City, NY IDA Civic Facility RB
             (Jamaica First Parking, LLC Project) - Series 2001
             LOC JPMorgan Chase Bank, N.A.                                      03/01/31    2.20      4,285,000                A-1+
  7,995,000  New York City, NY IDA Civic Facility RB
             (Jamaica First Parking, LLC Project) - Series 2004
             LOC JPMorgan Chase Bank, N.A.                                      03/01/34    2.20      7,995,000                A-1+
  3,865,000  New York City, NY IDA Civic Facility RB (The Convent of the
             Sacred Heart School of New York Project) - Series 2002
             LOC Wachovia Bank, N.A.                                            11/01/32    2.37      3,865,000     VMIG-1
  1,246,400  New York City, NY IDA IDRB (Abigal Press, Inc. Project)-Series 2002
             LOC JPMorgan Chase Bank, N.A.                                      12/01/18    3.50      1,246,400                A-1+
  8,300,000  New York City, NY IDA Liberty RB
             (FC Hanson Office Associates, LLC Project) - Series 2004
             LOC Lloyds PLC                                                     12/01/39    2.20      8,300,000     VMIG-1
  1,150,000  New York City, NY Transitional Finance Authority
             New York City Recovery Bonds Fiscal 2003 Series 1, Subseries 1B    11/01/22    2.65      1,150,000     VMIG-1     A-1+
  2,250,000  New York City, NY Transitional Finance Authority
             New York City Recovery Bonds Fiscal 2003 Series 3, Subseries 3B    11/01/22    2.66      2,250,000     VMIG-1     A-1+
    490,000  New York City, NY Trust for Cultural Resources RB
             (The Museum of Broadcasting) - Series 1989
             LOC KBC Bank                                                       05/01/14    2.35        490,000     VMIG-1     A-1+
  4,900,000  New York State Dormitory Authority RB
             (Catholic Health System Obligated Group) - Series 2006C
             LOC HSBC Bank US                                                   07/01/22    2.38      4,900,000     VMIG-1
  5,000,000  New York Dormitory Authority RB (Cornell Univeristy)-Series 2008B  07/01/37    2.48      5,000,000     VMIG-1     A-1+
  6,700,000  New York State Dormitory Authority RB
             (St Luke's Roosevelt Hospital Center) - Series 2005
             Insured by FHA                                                     08/15/25    2.85      6,700,000                A-1

</TABLE>

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The accompanying notes are an integral part of these 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 (d) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                                <C>        <C>     <C>               <C>      <C>
$ 1,000,000  New York State Energy Research & Development Authority
             Electric Facilities RB
             (Long Island Lighting Company Project) - Series 1997A
             LOC Royal Bank of Scotland PLC                                     12/01/27    2.75%  $  1,000,000     VMIG-1
  1,850,000  New York State Energy Research & Development Authority
             Facilities RB (Consolidated Edison Company of New York, Inc.
             Project) - Series 2004 C-2
             LOC Citibank, N.A.                                                 11/01/39    2.50      1,850,000     VMIG-1     A-1+
  1,500,000  New York State Energy Research & Development Authority
             Facilities RB (Consolidated Edison Company of New York, Inc.
             Project) - Series 2004 C-3
             LOC Citibank, N.A.                                                 11/01/39    2.75      1,500,000     VMIG-1     A-1+
  2,400,000  New York State Housing Finance Agency RB
             (101 West End Avenue Project) - Series 2000A
             Guaranteed by Federal National Mortgage Association                05/15/31    2.55      2,400,000     VMIG-1
  2,000,000  New York State Housing Finance Agency RB
             (125 West 31st Project) - Series 2005A
             Guaranteed by Federal National Mortgage Association                05/15/38    2.70      2,000,000     VMIG-1
  5,000,000  New York State Housing Finance Agency RB
             (350 West 43rd Street Project) - Series 2004A
             LOC Landesbank Hessen -Thuringen Girozentrale                      11/01/34    2.52      5,000,000     VMIG-1
  7,800,000  New York State Housing Finance Agency RB
             (Archstone Westbury Apartments Project) - Series 2004A
             LOC Bank of America                                                11/01/36    2.75      7,800,000     VMIG-1
  3,900,000  New York State Housing Finance Agency RB
             (Capitol Green Apartments Housing) - 2006 Series A
             Guaranteed by Federal National Mortgage Association                05/15/36    2.62      3,900,000     VMIG-1
  3,750,000  New York State Housing Finance Agency RB
             (Kew Gardens Hills Housing Project) - 2006 Series A
             Guaranteed by Federal National Mortgage Association                05/15/36    2.60      3,750,000     VMIG-1
  4,000,000  New York State Housing Finance Agency RB
             (Taconic West 17th Street Project) - 2006 Series A
             LOC Landesbank Baden - Wurttemberg                                 11/01/39    2.54      4,000,000     VMIG-1
  5,000,000  New York State Housing Finance Agency RB
             (The Victory Housing Project) - 2001 Series A
             Guaranteed by Federal Home Loan Mortgage Corporation               11/01/33    2.70      5,000,000     VMIG-1

</TABLE>
-------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
-------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008
===============================================================================

<TABLE>


                                                                                                                     Ratings (a)
                                                                                                                   ----------------
   Face                                                                         Maturity   Current      Value              Standard
  Amount                                                                          Date    Coupon (b)  (Note 1)     Moody's & Poor's
---------                                                                         ----    ----------  --------     ------- --------
Variable Rate Demand Instruments (d) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                                <C>        <C>     <C>               <C>      <C>
$ 7,700,000  New York State Housing Finance Agency Service Contract RB
             - Series 2003B
             LOC BNP Paribas                                                    03/15/26    2.60%  $  7,700,000                A-1+
  5,100,000  New York State Local Government Assistance Corporation
             - Series 1995D
             LOC Societe Generale                                               04/01/25    2.35      5,100,000     VMIG-1     A-1+
  7,495,000  New York State Local Government Assistance Corporation
             - Series 1995F
             LOC Societe Generale                                               04/01/25    2.45      7,495,000     VMIG-1     A-1+
  1,240,000  Onondaga County, NY IDA Civic Facility RB
             (YMCA of Greater Syracuse, Inc. Project) - Series 2003A
             LOC Citizens Bank, N.A.                                            11/01/25    2.49      1,240,000       P-1      A-1+
  3,730,000  Onondaga County, NY IDA Civic Facility RB
             (Ononadaga Community College Housing Development
             Corporation Project) - Series 2005A
             LOC Citizens Bank, N.A.                                            12/01/30    2.39      3,730,000                A-1+
  3,375,000  Ostego County, NY IDA Civic Facility RB
             (Templeton Foundation Project) - Series 2007A (c)
             LOC Key Bank, N.A                                                  06/01/27    2.49      3,375,000
  3,500,000  Palm Beach County, FL RB (Raymond F. Kravis Center for
             Performing Arts, Inc Project) - Series 2002
             LOC Northern Trust Company                                         07/01/32    2.50      3,500,000     VMIG-1
  1,900,000  St. Lawrence County, NY IDA Civic Facility Revenue Refunding RB
             (Claxton-Hepburn Medical Center Project) - Series 2006
             LOC KeyBank, N.A.                                                  12/01/31    2.45      1,900,000     VMIG-1     A-1
  4,000,000  Suffolk County, NY IDA Civic Facility RB Series 2006
             (St. Anthony's High School Civic Facility)
             LOC KBC Bank                                                       12/01/36    2.42      4,000,000                A-1+
  2,200,000  TOCs -Series 2000-1 (Puerto Rico Infrastructure Financing Authority
             Special Obligation Bonds 2000) - Series A
             Collateralized by State & Local Government Securities              04/01/27    2.41      2,200,000                A-1+
  3,000,000  TOCs - Series 2001-2 (Puerto Rico Public Improvement
             GO Bonds of 2001)
             Insured by FSA                                                     07/01/19    2.44      3,000,000                A-1+
  1,500,000  Town of Riverhead, NY IDA RB
             (Altaire Pharmaceuticals, Inc. Facility) - Series 1998 (c)
             LOC Bank of New York Mellon                                        10/01/13    2.65      1,500,000


</TABLE>

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



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

 <TABLE>


                                                                                                                     Ratings (a)
                                                                                                                   ----------------
   Face                                                                         Maturity   Current      Value              Standard
  Amount                                                                          Date    Coupon (b)  (Note 1)     Moody's & Poor's
---------                                                                         ----    ----------  --------     ------- --------
Variable Rate Demand Instruments (d) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                                <C>        <C>     <C>               <C>      <C>
$ 4,700,000  Triborough Bridge & Tunnel Authority, NY Subordinate Revenue
             Refunding Bonds (MTA Bridges & Tunnels) - Series 2000AB
             Insured by FSA                                                     01/01/19    2.60%  $  4,700,000     VMIG-1     A-1
-----------                                                                                        ------------
291,676,400  Total Variable Rate Demand Instruments                                                 291,676,400
-----------                                                                                        ------------
Variable Rate Demand Instrument - Private Placement (d) (0.75%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000  Orange County, NY IDA IDRB (1986 Blaser Real Estate Inc. Project)
             LOC Union Bank of Switzerland AG                                   09/01/21    3.41%  $  3,000,000       P-1      A-1+
-----------                                                                                        ------------
  3,000,000  Total Variable Rate Demand Instrument - Private Placement                                3,000,000
-----------                                                                                        ------------
             Total Investments (100.62%) (Amortized cost $402,863,797+)                            $402,863,797
             Liabilities in excess of cash and other assets (-0.62%)                                 (2,497,462)
                                                                                                   ------------
             Net Assets (100.00%)                                                                  $400,366,335
                                                                                                   ============
         +   Aggregate cost for federal income tax purposes is identical.
</TABLE>

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 may have 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)  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.

(d)  Securities  payable on demand at par including  accrued  interest  (usually
     with seven days' notice) and, if indicated,  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.

-------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
-------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008
===============================================================================

<TABLE>

   KEY:
<S>         <C>  <C>                                              <C>     <C>   <C>
   BAN       =   Bond Anticipation Note                           IDA       =    Industrial Development Agency
   CSD       =   Central School District                          IDRB      =    Industrial Development Revenue Bond
   FHA       =   Federal Housing Administration                   LOC       =    Letter of Credit
   FSA       =   Financial Security Assurance                     RAN       =    Revenue Anticipation Note
   GNMA      =   Government National Mortgage Association         RB        =    Revenue Bond
   GO        =   General Obligation                               TAN       =    Tax Anticipation Notes
   HDC       =   Housing Development Corporation                  TOCs      =    Tender Option Certificates

</TABLE>

   Breakdown of Portfolio Holdings by State:

   -------------------------------------------------------------------------
             State                    Value             % of Portfolio
   -------------------------------------------------------------------------
     Florida                         $3,500,000               0.87%
     Louisiana                        1,370,000               0.34
     New Hampshire                    3,300,000               0.82
     New York                       383,493,797              95.19
     Puerto Rico                      5,200,000               1.29
     Multiple-State securities        6,000,000               1.49
   -------------------------------------------------------------------------
     Total                         $402,863,797             100.00%
   -------------------------------------------------------------------------


-------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
-------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2008
===============================================================================

<TABLE>

ASSETS
<S>                                                                                           <C>
   Investments in securities, at amortized cost (Note 1)................................      $   402,863,797
   Due from Transfer Agent..............................................................              586,643
   Accrued interest receivable..........................................................            3,304,916
   Prepaid expenses.....................................................................               13,595
                                                                                              ---------------
         Total assets...................................................................          406,768,951
                                                                                              ---------------

LIABILITIES
   Payable to affiliates*...............................................................              211,587
   Due to Custodian.....................................................................            5,837,135
   Accrued expenses.....................................................................              156,161
   Dividends payable....................................................................              196,584
   Other payable........................................................................                1,149
                                                                                              ---------------
         Total liabilities..............................................................            6,402,616
                                                                                              ---------------
   Net assets...........................................................................      $   400,366,335
                                                                                              ===============

SOURCE OF NET ASSETS
   Net capital paid in on shares of capital stock (Note 4)..............................      $   400,372,663
   Accumulated net realized loss........................................................               (6,328)
                                                                                              ---------------
   Net assets...........................................................................      $   400,366,335
                                                                                              ===============

<CAPTION>

Net asset value, per share (Note 4):
Class Name                                          Net Assets          Shares Outstanding         Net Asset Value
<S>                                                <C>                     <C>                        <C>
Class A Shares..............................       $273,457,567            273,463,043                 $1.00
Class B Shares..............................        $15,849,501             15,849,818                 $1.00
Advantage Shares............................       $111,059,267            111,061,491                 $1.00

</TABLE>

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

The accompanying notes are an integral part of these financial statements.

<PAGE>
-------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 2008
===============================================================================

<TABLE>

INVESTMENT INCOME

Income:
<S>                                                                             <C>
   Interest..................................................................   $      12,776,401
                                                                                -----------------
Expenses: (Note 2)

   Investment management fee.................................................           1,153,453

   Administration fee........................................................             807,417

   Distribution fee (Advantage Shares).......................................             408,849

   Shareholder servicing fee (Class A).......................................             427,951

   Shareholder servicing fee (Victory Shares)................................             109,479

   Shareholder servicing fee (Advantage Shares)..............................             227,138

   Custodian expenses........................................................              19,555

   Shareholder servicing and related shareholder expenses+...................             213,079

   Legal, compliance and filing fees.........................................             101,801

   Audit and accounting......................................................             121,023

   Directors' fees and expenses..............................................              45,038

   Other expenses............................................................              14,729
                                                                                -----------------
       Total expenses........................................................           3,649,512

       Less:  Expenses paid indirectly ......................................              (5,162)

              Fees Waived ...................................................            (256,908)
                                                                                -----------------
   Net expenses .............................................................           3,387,442
                                                                                -----------------
Net investment income........................................................           9,388,959


REALIZED GAIN (LOSS) ON INVESTMENTS


Net realized gain on investments.............................................               1,281
                                                                                -----------------
Increase in net assets from operations.......................................   $       9,390,240
                                                                                =================

</TABLE>

+    Includes class specific  transfer agency expenses of $117,722,  $12,763 and
     $27,335 for Class A, Class B and Victory Shares, respectively.

-------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
-------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED APRIL 30, 2008 AND 2007
===============================================================================

<TABLE>

                                                                           2008                    2007
INCREASE (DECREASE) IN NET ASSETS                                    ----------------       ----------------
<S>                                                                  <C>                    <C>
Operations:
    Net investment income.........................................   $      9,388,959       $     11,535,996
    Net realized gain (loss) on investments.......................              1,281                  4,432
                                                                     ----------------       ----------------
    Increase in net assets from operations........................          9,390,240             11,540,428

Dividends to shareholders from net investment income*:
    Class A.......................................................         (5,227,876)            (7,502,067)
    Class B.......................................................           (698,412)              (960,061)
    Victory Shares................................................         (1,411,155)            (1,313,346)
    Advantage Shares..............................................         (2,051,516)            (1,760,522)
                                                                     ----------------       ----------------
      Total dividends to shareholders.............................         (9,388,959)           (11,535,996)

Capital share transactions (Note 4):
    Class A.......................................................         54,607,659            (66,400,934)
    Class B.......................................................        (16,748,346)              (732,412)
    Victory Shares................................................        (60,515,130)            21,001,609
    Advantage Shares..............................................         38,641,078              5,737,883
                                                                     ----------------       ----------------
      Total capital share transactions............................         15,985,261            (40,393,854)
                                                                     ----------------       ----------------
        Total increase (decrease).................................         15,986,542            (40,389,422)
Net assets:
    Beginning of year.............................................        384,379,793            424,769,215
                                                                     ----------------       ----------------
    End of year...................................................   $    400,366,335       $    384,379,793
                                                                     ================       ================
Undistributed net investment income...............................   $       -0-            $       -0-
                                                                     ================       ================

</TABLE>

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


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

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


1. Summary of Accounting Policies

New  York  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 four classes of stock  authorized,  Class A, Class B,
Victory and  Advantage  New York Tax Exempt  Liquidity  Fund Shares  ("Advantage
Shares").  The Victory  shares were  liquidated  on April 1, 2008.  The Class A,
Victory and Advantage Shares are subject to a service fee pursuant to the Fund's
Shareholder  Servicing  Agreement.  The Advantage  Shares are also subject to an
additional  distribution fee pursuant to a Distribution  Agreement.  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 certain administrative and legal expenses. Class specific
expenses of the Fund are limited to  shareholder  servicing  fees,  distribution
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  will be  calculated  based on the longer of the period
     remaining  until the next  readjustment  of the interest rate or the period
     remaining until the principal amount can be recovered through demand.

    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  (if any)  income to its  shareholders.
     Therefore, no provision for federal income tax is required.

    c) Dividends and Distributions -

     Dividends from net investment income (excluding long-term capital gains and
     losses, if any, and amortization of market discount) are declared daily and
     paid monthly.  Net realized 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.

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



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

1. Summary of Accounting Policies (continued)

    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.

    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"),  equal to an annual
rate of 0.30% of the Fund's average daily net assets.

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

Pursuant to the Fund's  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  a
Distribution  Agreement and a Shareholder  Servicing Agreement,  with respect to
the Class A, Victory and Advantage  Shares of the Fund.  For its services  under
the Shareholder  Servicing  Agreement,  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 Victory  Shares and a service  fee of 0.25% with  respect to the
Advantage  Shares.  In  addition,   for  its  services  under  the  Distribution
Agreement,  the Distributor receives 0.45% per annum in distribution fees of the
Advantage  Shares' average daily net assets.  There were no additional  expenses
borne by the Fund pursuant to the Distribution Plan.

For the year  ended  April  30,  2008 the  Distributor  voluntarily  waived  the
following fees:

Distribution fees - Advantage Shares                          $  249,297
Shareholder servicing fees - Advantage Shares                      7,611
                                                              ----------
    Total fees waived                                         $  256,908
                                                              ==========

The Distributor has no right to recoup prior waivers.

Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$7,000 per annum, plus a fee of $1,375 per Board of Directors meeting attended.

For  the  year  ended  April  30,  2008,  certain  Directors  and  Officers  had
investments  representing  less  than  0.01% of the Fund  which  are  considered
immaterial.

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

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

2. Investment Management Fees and Other Transactions with Affiliates (continued)

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, Class B and Victory shares of the
Fund. For the year ended April 30, 2008 these fees amounted to:

                                                   Amount                %
                                                 ---------             -----
 Class A shares.............................     $ 107,016             0.05%
 Class B Shares.............................        12,437             0.05%
 Victory Shares.............................        27,335             0.05%
                                                 ---------
 Total Transfer Agency Fees.................     $ 146,788
                                                 =========

3. Compensating Balance Agreement

The Manager and the Bank of New York Mellon (the  "Bank")  have  entered  into a
compensating  balance  arrangement,  effective  November 1, 2006, with the Fund,
which allows 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 April 30, 2008, the Fund was overdrawn by $5,837,135.

For the year ended April 30, 2008, the breakdown of expenses paid  indirectly by
the Fund were as follows:

     Custodian expenses...................................   $    5,162
                                                             ==========
4. Capital Stock

At  April  30,  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  Ended                         Year Ended
                                                 April 30, 2008                      April 30, 2007
                                                 --------------                      --------------
Class A
--------
<S>                                              <C>                                 <C>
Sold......................................         1,084,289,751                      1,460,063,703
Issued on reinvestment of dividends.......             4,402,508                          5,221,475
Redeemed..................................        (1,034,084,600)                    (1,531,686,112)
                                                  --------------                     --------------
Net increase (decrease)...................            54,607,659                        (66,400,934)
                                                  ==============                     ==============
Class B
-------
Sold......................................            81,610,499                        152,017,566
Issued on reinvestment of dividends.......               727,401                            956,167
Redeemed..................................           (99,086,246)                      (153,706,145)
                                                  --------------                     --------------
Net increase (decrease)...................           (16,748,346)                          (732,412)
                                                  ==============                     ==============

</TABLE>

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



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

<TABLE>

4. Capital Stock (continued)
                                                   Year Ended                          Year Ended
                                                 April 30, 2008                      April 30, 2007
                                                 --------------                      --------------
Victory Shares
--------------
<S>                                               <C>                                <C>
Sold......................................            95,967,144                         78,711,451
Issued on reinvestment of dividends.......             1,410,959                          1,313,682
Redeemed..................................          (157,893,233)                       (59,023,524)
                                                 ---------------                     --------------
Net increase (decrease)...................           (60,515,130)                        21,001,609
                                                 ===============                     ==============
Advantage Shares
----------------
Sold......................................           234,751,597                        173,247,949
Issued on reinvestment of dividends.......             2,046,062                          1,746,111
Redeemed..................................          (198,156,581)                      (169,256,177)
                                                 ---------------                     --------------
Net increase (decrease)...................            38,641,078                          5,737,883
                                                 ===============                     ==============
5. Tax Information

<CAPTION>

The tax  character of  distributions  paid during the years ended April 30, 2008
and 2007 were as follows:

                                                              2008                 2007
                                                          ------------        ------------
<S>                                                       <C>                 <C>
     Tax-exempt income...............................     $  9,388,959        $ 11,535,996

</TABLE>

At April 30, 2008,  the Fund had unused  capital  loss carry  forwards of $2,302
available for Federal Income Tax purposes to be applied against future gains, if
any. If not applied against future gains, $2,302 will expire in 2014.

During the year ended April 30, 2008,  the Fund  utilized  $5,307 of its carried
forward capital losses.

At April 30, 2008, as permitted under federal income tax  regulations,  the Fund
elected to defer $4,026 of post-October  net capital losses.  At April 30, 2008,
the Fund had no ordinary distributable earnings.

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  and open tax years 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.

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

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

6. Concentration of Credit Risk

The Fund invests primarily in obligations of political subdivisions of the State
of New York and, accordingly,  is subject to the credit risk associated with the
non-performance  of such issuers.  Approximately  69% 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 credit worthiness of the issuers, as well as that of the financial
institutions  issuing the credit  enhancements,  and by  limiting  the amount of
holdings with credit enhancements from one financial institution.

7. New Accounting Pronouncements

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.

<TABLE>

8. Financial Highlights

                                                                                   Year Ended April 30,
                                                                 --------------------------------------------------------------
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....................................     0.025         0.027        0.019         0.007        0.002
      Net realized and unrealized gain (loss) on investments...     0.000          --          0.000          --           --
                                                                 --------      --------     --------      --------     --------
      Total from investment operations.........................     0.025         0.027        0.019         0.007        0.002
Less distributions from:
      Dividends from net investment income.....................    (0.025)       (0.027)      (0.019)       (0.007)      (0.002)
      Net realized gain (loss) on investments..................      --            --         (0.000)         --           --
                                                                 --------      --------     --------      --------     --------
      Total distributions......................................    (0.025)       (0.027)      (0.019)       (0.007)      (0.002)
                                                                 --------      --------     --------      --------     --------
Net asset value, end of year...................................  $  1.00       $  1.00      $  1.00       $  1.00      $  1.00
                                                                 ========      ========     ========      ========     ========
Total Return...................................................     2.50%         2.73%        1.93%         0.70%        0.21%
Ratios/Supplemental Data
Net assets, end of year (000's)................................  $273,458      $218,850     $285,247      $283,134     $296,871
Ratios to average net assets:
      Expenses (a).............................................     0.86%         0.87%        0.86%         0.86%        0.83%
      Net investment income....................................     2.44%         2.69%        1.91%         0.70%        0.21%
      Expenses paid indirectly.................................     0.00%         0.00%        0.00%         0.00%        0.00%

(a)   Includes expenses paid indirectly

</TABLE>

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



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

<TABLE>

8. Financial Highlights (continued)

                                                                                  Year Ended April 30,
                                                                 --------------------------------------------------------------
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....................................     0.027         0.029        0.021         0.009        0.004
      Net realized and unrealized gain (loss) on investments...     0.000          --          0.000          --           --
                                                                 --------      --------     --------      --------     --------
      Total from investment operations.........................     0.027         0.029        0.021         0.009        0.004
Less distributions from:
      Dividends from net investment income.....................    (0.027)       (0.029)      (0.021)       (0.009)      (0.004)
      Net realized gain (loss) on investments..................      --            --         (0.000)         --           --
                                                                 --------      --------     --------      --------     --------
      Total distributions......................................    (0.027)       (0.029)      (0.021)       (0.009)      (0.004)
                                                                 --------      --------     --------      --------     --------
Net asset value, end of year...................................  $  1.00       $  1.00      $  1.00       $  1.00      $  1.00
                                                                 ========      ========     ========      ========     ========
Total Return...................................................     2.71%         2.93%        2.14%         0.90%        0.41%
Ratios/Supplemental Data
Net assets, end of year (000's)................................  $ 15,849      $ 32,597     $ 33,330      $ 39,831     $ 51,411
Ratios to average net assets:
      Expenses (a).............................................     0.65%         0.68%        0.67%         0.66%        0.63%
      Net investment income....................................     2.80%         2.90%        2.14%         0.88%        0.40%
      Expenses paid indirectly.................................     0.00%         0.00%        0.00%         0.00%        0.00%


(a)           Includes expenses paid indirectly

</TABLE>

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

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

<TABLE>

8. Financial Highlights (continued)


                                                                                   Year Ended April 30,
                                                                 --------------------------------------------------------------
Advantage 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....................................     0.023         0.025        0.018         0.006        0.001
      Net realized and unrealized gain (loss) on investments...     0.000          --          0.000          --           --
                                                                 --------      --------     --------      --------     --------
      Total from investment operations.........................     0.023         0.025        0.018         0.006        0.001
Less distributions from:
      Dividends from net investment income.....................    (0.023)       (0.025)      (0.018)       (0.006)      (0.001)
      Net realized gain (loss) on investments..................      --            --         (0.000)         --           --
                                                                 --------      --------     --------      --------     --------
      Total distributions......................................    (0.023)       (0.025)      (0.018)       (0.006)      (0.001)
                                                                 --------      --------     --------      --------     --------
Net asset value, end of year...................................  $  1.00       $  1.00      $  1.00       $  1.00      $  1.00
                                                                 ========      ========     ========      ========     ========
Total Return...................................................     2.34%         2.58%        1.79%         0.61%        0.15%
Ratios/Supplemental Data
Net assets, end of year (000's)................................  $111,059      $ 72,419     $ 66,680      $ 71,563     $ 36,685
Ratios to average net assets:
      Expenses (a).............................................     1.02%         1.02%        1.01%         0.95%        0.89%
      Net investment income....................................     2.26%         2.55%        1.77%         0.63%        0.14%
      Expenses paid indirectly.................................     0.00%         0.00%        0.00%         0.00%        0.00%
      Distribution and Shareholder servicing fees waived.......     0.28%         0.30%        0.31%         0.36%        0.39%

</TABLE>

(a)           Includes expenses paid indirectly

<PAGE>
-------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
===============================================================================






To the Board of Directors and Shareholders of
New York 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 New York Daily Tax Free Income
Fund, Inc. (the "Fund") at April 30, 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  April  30,  2008 by  correspondence  with  the
custodian, provide a reasonable basis for our opinion.




PricewaterhouseCoopers LLP
New York, New York
June 25, 2008



<PAGE>
-------------------------------------------------------------------------------
NEW YORK 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://www.sec.gov).  The Fund does not presently  invest in voting  securities
and has therefore not adopted proxy voting policies and procedures.

DISTRIBUTIONS

The tax  character  of all  distributions  paid during the years ended April 30,
2008 and 2007 were tax-exempt income.





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



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

INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT

New York Daily Tax Free Income Fund, Inc.

On March 4,  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 Fund'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 Fund'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 Fund's portfolio,  and the money market industry and the economy in general;
and the  compensation  of all officers,  directors and employees of the Fund who
are officers of the Manager or its affiliates.  The Board also observed that the
Manager  provides  various  administrative  services to the Fund 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. 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 Fund 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
Fund and the  industry  in  general.  The Board also  focused  on the  Manager's
reputation and long-standing  relationship with the Fund 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.

2)   The performance of the Fund and the Manager.

The Board reviewed the investment  performance of the Fund,  both on an absolute
basis and as compared to various  Lipper peer group  categories on a gross basis
for the one-month,  one-, three-,  five- and ten-year periods ended December 31,
2007. The peer group categories  included:  (i) an asset-based peer group of New
York tax-exempt money market funds, as classified by Lipper  ("performance group
1"); (ii) a competitors class peer group, representing other New York tax-exempt
money  market  funds  that are  considered  to be  competitors  of the Fund with
similar distribution channels ("performance group 2"); and (iii) a peer group of
all retail and  institutional  New York  tax-exempt  money  market  funds in the
Lipper  universe  regardless  of asset size or primary  channel of  distribution
("performance universe").  These peer groups are collectively referred to as the
"Peer  Groups."  The  Manager  advised  the  Board  that it does not  advise  or
subadvise:  (i) other funds with a similar  investment  policy to the Fund's; or
(ii) other types of accounts, such as institutional and pension accounts, with a
similar  investment policy to the Fund's.  The Board used the Fund's performance
against  the Peer Groups to provide  objective  comparative  benchmarks  against
which they  could  assess the Fund's  performance.  The Board  considered  those
comparisons  as  helpful  in their  assessment  as to whether  the  Manager  was
obtaining for the Fund's  shareholders the performance that was available in the
marketplace given the Fund's investment objectives, strategies,


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

INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT, continued

2)  The performance of the Fund and the Manager., continued

limitations  and  restrictions.  In  particular,  the Board noted that the gross
performance  of the Fund against all the Peer Groups was  satisfactory  and that
the Fund's ranking against the Lipper  performance  universe (which includes all
funds in the expense  universe)  was in the 1st quintile for the  one-month  and
one-year periods, 3rd quintile for the three-year and five-year periods, and the
2nd 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  Fund  ("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 Fund to date.

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

In connection with the Directors'  consideration  of the level of the management
fee, the Directors  considered a number of factors. The Board compared the level
of the management fee for the Fund against the advisory fees charged to funds in
the Peer Groups and the Fund's combined  management-administrative  fees against
fees covering both advisory and administrative  services charged to the funds in
the Peer Groups.  The Board also considered  comparative  total fund expenses of
the Class A shares of the Fund and the Peer Groups. The Board used this combined
fee  information  and  total  expense  data  as  a  guide  to  help  assess  the
reasonableness  of the Fund'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 Peer Group fund  agreements is often not
apparent.  The Board also  viewed the Peer Group fee  information  as a whole as
useful in assessing  whether the Manager was  providing  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 Fund's  management fee and combined fees  (management  and
administrative) were reasonable,  but at the higher end of the comparison range,
when  compared  to the  Peer  Groups.  The  Board  also  acknowledged  that  the
differences  in expense ratios as between the various shares classes of the Fund
was  primarily  due to the  differences  in 12b-1 fees payable by the classes in
connection with the distribution channels through which each class was sold. The
Board  also  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 a similar  investment  policies to the
Fund. 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 Fund.  In this  regard  the Board
reviewed  profitability data that was distributed at the meeting 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 Fund to the
Manager and its affiliates was reasonable.


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



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

INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT, continued

4)   The extent to which  economies  of scale will be realized as the Fund 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 Fund 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 Fund were to experience significant asset growth.
In the event  there  was  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 Fund 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  Fund'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>
-------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
===============================================================================

<TABLE>

                                           Directors and Officers Information
                                                   April 30, 2008(1)
---------------------- ------------- --------------- ------------------------------- ----------------- -----------------

---------------------  Position(s)    Term of Office    Principal Occupation(s)          Number of          Other
  Name, Address(2),     Held with     and Length of           During Past              Portfolios in    Directorships
       and Age             Fund       Time Served(3)            5 Years                Fund Complex        held by
                                                                                        Overseen by        Director
                                                                                         Director
---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
------------------------------------ --------------- ------------------------------- ----------------- -----------------
<S>                     <C>           <C>              <C>                            <C>                <C>
Disinterested Directors:
------------------------------------ --------------- ------------------------------- ----------------- -----------------
---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
Edward A. Kuczmarksi,    Director         1984       Certified Public Accountant     Director/Trustee  Trustee of the
Age 58                                               and Partner of Hays & Company   of eleven         Empire Builder
                                                     LLP since 1980.                 portfolios        Tax Free Bond
                                                                                                       Fund and
                                                                                                       Director of ISI
                                                                                                       Funds.
---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
Caroline E. Newell,      Director         1984       Director of the Park Avenue     Director of one   Trustee of the
Age 67                                               Church Day School since         portfolio         Empire Builder
                                                     2001.  Director of Le Chateau                     Tax Free Bond
                                                     des Enfants and the American                      Fund
                                                     School in Switzerland, both
                                                     since 1990.
---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
---------------------- ------------- --------------- ------------------------------- ----------------- -----------------
John P. Steines,         Director         1984       Professor of Law, New York      Director of one   Trustee of the
Age 59                                               University School of Law        portfolio         Empire Builder
                                                     since 1980.                                       Tax Free Bond
                                                                                                       Fund
---------------------- ------------- --------------- ------------------------------- ----------------- -----------------


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



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

<TABLE>

                                           Directors and Officers Information
                                             April 30, 2008(1) (continued)
------------------ ----------- -------------- --------------------------------------------- ---------------- ------------

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

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

<TABLE>

                                           Directors and Officers Information
                                             April 30, 2008(1) (continued)



------------------ ------------ ------------ ------------------------------------------------ ------------- -------------

-----------------  Position(s)     Term of               Principal Occupation(s)                Number of       Other
Name, Address(2),   Held with      Office                      During Past                    Portfolios in Directorships
     and Age           Fund     and Length of                    5 Years                       Fund Complex    held by
                                    Time                                                       Overseen by     Director
                                  Served(3)                                                      Director
------------------ ------------ ------------ ------------------------------------------------ ------------- -------------
------------------------------- ------------ ------------------------------------------------ ------------- -------------

Interested Directors/Officers:
------------------------------- ------------ ------------------------------------------------ ------------- -------------
------------------ ------------ ------------ ------------------------------------------------ -------------- ------------
<S>                     <C>           <C>              <C>                            <C>                <C>
Christopher        Chief        Since 2007    Vice President, Chief Compliance Officer, AML        N/A           N/A
Brancazio,         Compliance                 Officer and Secretary of RTAM, LLC since
Age 42             Officer                    September 2007. Mr. Brancazio is also Chief
                   and AML                    Compliance Officer and AML Officer of eight
                   Officer                    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 & o. Inc., and the Trainer
                                              Wortham Mutual Funds.Mr. Brancazio also serves
                                              as Vice President, Chief Compliance Officer, AML
                                              Officer and Secretary of Reich & Tang
                                              Services, Inc. and Reich & Tang Distributors,
                                              Inc.
------------------ ------------ ------------ ------------------------------------------------ -------------- ------------
------------------ ------------ ------------ ------------------------------------------------ -------------- ------------
Richard De         Vice         Since 2005   Executive Vice President and Chief Operating          N/A           N/A
Sanctis,           President                 Officer and of RTAM, LLC and Reich & Tang
Age 51                            1992 to    Services, Inc.  Associated with RTAM, LLC since
                   Treasurer       2004      1990.  Mr. De Sanctis is Vice President of
                   and                       eight other funds in the Reich & Tang Fund
                   Assistant                 Complex, and serves as Executive Vice President
                   Secretary                 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.
------------------ ------------ ------------ ------------------------------------------------ -------------- ------------
------------------ ------------ ------------ ------------------------------------------------ -------------- ------------
Joseph Jerkovich,  Vice         Since 2008   Senior Vice President and Chief Financial             N/A           N/A
Age 40             President                 Officer of RTAM, LLC and of Reich & Tang
                                             Services, Inc.  Associated with RTAM, LLC since
                                             September 2004. Mr. Jerkovich was Vice
                                             President and Chief Investment Officer at
                                             Winklevoss Consulting from May 2002 - July 2004.
                                             Mr. Jerkovich is Vice President of eight other
                                             funds in the Reich & Tang Fund Complex and is
                                             also Senior Vice President and Controller of
                                             Reich & Tang Distributors, Inc.
------------------ ------------ ------------ ------------------------------------------------ -------------- ------------

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

<TABLE>

                                           Directors and Officers Information
                                             April 30, 2008(1) (continued)
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
-----------------
                   Position(s)   Term of               Principal Occupation(s)                 Number of        Other
 Name, Address(2),  Held with    Office                      During Past                     Portfolios in  Directorships
      and Age         Fund    and Length of                    5 Years                       Fund Complex      held by
                                  Time                                                        Overseen by      Director
                                Served(3)                                                      Director
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
----------------------------- ------------- ---------------------------------------------- ---------------- -------------
Interested
Directors/Officers:
----------------------------- ------------- ---------------------------------------------- ---------------- -------------
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
<S>                     <C>           <C>              <C>                            <C>                <C>
Christine Manna,   Secretary   Since 2007   Vice President and Assistant Secretary of            N/A            N/A
Age 38                                      RTAM, 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 and Assistant
                                            Secretary of Reich & Tang Services, Inc. and
                                            Reich & Tang Distributors, Inc.
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
Anthony Pace,      Treasurer                Vice President of RTAM, LLC since September          N/A            N/A
Age 41             and                      2004.  Mr. Pace was a Director of a Client
                   Assistant                Service Group at GlobeOp Financial Services,
                   Secretary   Since 2004   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 eleven other funds in the Reich
                                            & Tang Fund Complex.
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------
Robert Rickard,    Vice        Since 2007   Senior Vice President of RTAM, LLC.                  N/A            N/A
Age 39             President                Associated with RTAM, LLC since December
                                            1991. Mr. Rickard is also Vice President of
                                            eight other funds in the Reich & Tang Fund
                                            Complex. Mr. Rickard is also Senior Vice
                                            President of Reich & Tang Distributors, Inc.
------------------ ---------- ------------- ---------------------------------------------- ---------------- -------------

</TABLE>

(1)  The Statement of Additional  Information  includes  additional  information
     about  New  York  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 adviser.

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







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





New York 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
    Reich & Tang Services, Inc.                         Annual Report
    600 Fifth Avenue                                    April 30, 2008
    New York, New York 10020

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



NY 04/08A

<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 04/30/2008            FYE 04/30/2007
<S>      <C>                       <C>                        <C>

4(a)     Audit Fees                 $ 33,500                  $ 31,500
4(b)     Audit Related Fees         $      0                  $      0
4(c)     Tax Fees                   $  4,000                  $  3,600
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 April 30, 2008. $3,600 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 April 30, 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 second fiscal quarter
         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) NEW YORK DAILY TAX FREE INCOME FUND, INC.

By (Signature and Title)* /s/Christine Manna
                             Christine Manna, Secretary

Date: July 3, 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: July 9, 2008

By (Signature and Title)* /s/Joseph Jerkovich
                             Joseph Jerkovich, Treasurer and Assistant Secretary
Date: July 9, 2008

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