Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: TDS :: form 3cd :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: VAT RATES :: ACCOUNTING STANDARD :: due date for vat payment :: list of goods taxed at 4% :: articles on VAT and GST in India
 
 
« News Headlines »
 Income Tax Department expands list of deposits, transactions under scrutiny
  Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962
 Master Directions on Access Criteria for Payment Systems
 RBI-Scheduled Bank's Statement of Position in India as on Friday, January 06, 2017 (Revised)
 3 Big Mistakes To Avoid This Tax Season
 The Top 5 Tax Stories Of 2017
 Are multiple service tax rates in the offing?
 All you need to know about claiming tax break on HRA
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017
 8 unknown stocks that could yield huge returns

Cheers: Your tax-free investment limit may be hiked
October, 12th 2007
Individual tax payers may be in for some cheer. The tax-free investment limit for individuals may soon be hiked from the present Rs 1 lakh to Rs 1.5 lakh.

The proposal that the government is deliberating has a condition though: the additional Rs 50,000 will have to be invested in infrastructure bonds. The move is aimed at mobilising funds to bridge the resource gap of about $40 billion in infrastructure during the Eleventh Plan period (2007-2012).

The power ministry has already taken the lead, under the prime ministers direction, to launch Vidyut Vikas Patra or power bonds. The move may be announced in the next budget.

The government is considering enhancing the tax-free investment limit with the dual purpose of providing relief to tax payers and mobilising funds for the infrastructure sector, which requires about $500-billion investment during the Eleventh Plan. The move has been favoured by a standing group of power ministers constituted by the prime minister. The group has now constituted a sub-committee headed by Planning Commission deputy chairman Montek Singh Ahluwalia to fine-tune the proposal for inclusion in next years budget, an official source said. The move may also help the government in the event of snap polls, added the source.

Infrastructure bonds are reckoned to be good for mobilising resources; analysts see the new cap raising about Rs 3 lakh crore for infrastructure in the remaining four years of the Plan. The instrument lost its lure after it was stripped of the sub-limit for obtaining tax sops on such investments.
u From Page 1

Till the 2004-05 fiscal, individual tax payers were given a tax exemption for investments up to Rs 1 lakh per annum. This benefit enjoyed a sub-limit of Rs 30,000 as maximum investment in infrastructure bonds.

However, this clause was removed from the 2005-06 fiscal. Instead, infrastructure bond investments have since been made part of the overall Rs 1 lakh cap for availing tax benefit.

The sub-limit is now proposed to be restored with an enhanced exemption of Rs 50,000 to woo back tax payers.
It has been estimated that even if one-third of the tax payer base subscribes to power bonds, around Rs 75,000 crore could be mobilised each fiscal. The funds thus garnered would also benefit the power sector, which is short of about Rs 4.5 lakh crore in investment needs.

The Eleventh Plan has targeted a Rs 10.3-lakh-crore investment strategy for the sector. The power sector alone could mobilise over Rs 1.2 lakh crore over the next four years if the tax-free exemption limit is enhanced. This is assuming that 40% of the amount mobilised (in line with the share of power in infrastructure sector) from infrastructure bonds goes to the power sector, the source said.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions