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: ACCOUNTING STANDARD :: VAT Audit :: articles on VAT and GST in India :: empanelment :: cpt :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: ACCOUNTING STANDARDS :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
« Direct Tax »
  No relief to those who defaulted on 1st IDS installment: CBDT
 CBDT clears the air on rental incomes from industrial parks, SEZs
 CBDT signifies achievements towards eliminating domestic black money
 Seafarers get tax exemption from Ministry of Finance
 Financial institutions need to get accounts self-certified for FATCA by April 30
 Direct tax incentives to promote start-ups
 Employer didn't deposit the TDS it deducted on your salary. How to claim it?
 Central Board of Direct Taxes clarifies on cash curb, Aadhaar
 CBDT to issue PAN, TAN within a day to improve Ease of Doing Business
 Expats who stayed in India for 182 days or more must apply for Aadhaar card: CBDT
 CBDT accomplishes direct taxes collection target for FY 2016-17

Tax sops for insurance, pension
October, 03rd 2012

Pension products offered by insurance companies may also get tax relief on par with the New Pension Scheme (NPS) over and above the limit of Rs 1 lakh under Section 80C of the Income-Tax Act.

The Department of Revenue will examine whether, in addition to NPS, some insurance pension products as approved by the Insurance Regulatory and Development Authority (Irda) may be included in the separate limit, over and above the limit of Rs 1 lakh under Section 80C of the Income-tax Act for the purpose of income tax deduction on the premium paid, Finance Minister P Chidambaram said on Monday.

This would mean the amount invested in these instruments, as well as the returns earned, would be exempted from tax. The proposed move will help increase the reach of life insurance in the country.
The ministry is also considering reduction in service tax on the first year regular premium, as well as single premium policies, treating annuity policy on par with subscriptions to a NPS. It is also planning to exempt the first-year premium and subsequent premiums of social security insurance schemes such as Janashri Bima Yojana and Aam Aadmi Bima Yojana from service tax. A similar exemption will be examined in the case of micro insurance policies.

The revenue department will also explore the possibility of assessing service tax on realisation basis. At present, service tax is levied on premium on accrual basis. It will examine whether existing policies can be grandfathered whenever changes are made to direct tax laws, so that changes will apply only to policies issued prospectively.

Deduction may be allowed on contribution made to post-retirement medical scheme offered by insurance companies. At present, TDS (tax deducted at source) applies on every payment of commission to an agent above Rs 20,000.

The Central Board of Direct Taxes (CBDT) will examine whether the exemption can be shifted from every payment of commission to a cumulative commission payment exceeding, say, Rs 50,000 or any other suitable threshold in a year.

The finance minister has asked the revenue department to complete the examination of these suggestions by October 10, 2012 so that appropriate decisions may be announced shortly thereafter.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

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