Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: VAT RATES :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: cpt :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: articles on VAT and GST in India :: empanelment
 
 
« News Headlines »
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states
 Should you file revised Income Tax returns; find out here
 Tax Deducted at Source (TDS) in Goods & Services Tax (GST)
 10 companies that blamed GST for soft June quarter
 How will GST impact the Indian economy
 10 days left to file your first GST return. This is how you do it
 What is property tax and how is it calculated…
 File income tax returns in time to carry forward losses
 Missed the deadline to file income tax returns? Here is what you should do
 Who has to report foreign assets in Indian income tax return and how to do it

Life with tax breaks may begin at 60
November, 24th 2006

Being a senior citizen has its advantages. In what could come as a bonanza for the elderly, the government is examining a proposal to reduce the threshold age for tax exemption purposes from 65 to 60 years. With the reduction in this threshold, senior citizens would be able to avail of larger tax benefits on instruments like the Senior Citizens Savings Scheme and other bank deposits.

The move to lower the age limit will also align it with the banking system, where the age threshold for availing benefits by senior citizens is 60 years.

The revenue department is examining the issue and it is expected that it will be a Budget gift for the elderly from finance minister P Chidambaram. Earlier this year, Mr Chidambaram had drawn flak for making it compulsory for banks to deduct tax at source on interest income accruing to senior citizens. Lowering the age limit is expected to somewhat blunt the criticism.

Currently, senior citizens avail of benefits from various arms of the government. However, there is lack of uniformity as different departments have set the qualifying age bar at different levels. While for Indian Railways, the age for getting benefits of senior citizens is 60 years, for airlines, it is 65. In the same manner, in banks, senior citizen benefits, like higher interest rate, are available at the age of 60.

At present, a senior citizen pays tax on income only if it exceeds Rs 1,85,000. This is against Rs 1,00,000 applicable to all other individuals. Besides, a senior citizen is also eligible for tax breaks for self or any family member, who pays premium to secure medical insurance of a dependent senior citizen. The break allows deduction from taxable income up to an amount of Rs 15,000 (limit in case of other individuals is Rs 10,000).

Further, a senior citizen himself or herself or any family member who incurs any expenditure on the medical treatment of specified disease of dependent senior citizen, is eligible to claim deduction from taxable income up to Rs. 60,000. This is Rs 40,000 in case of other individuals.

According to Govardhan Purohit, executive director, PricewaterhouseCoopers, considering the increase in the cost of living and medical treatment, the basic limit of exemption may be increased to Rs 2,50,000, from the current level of Rs 1,85,000. Similarly, the medical premium limit may be increased from Rs 15,000 to Rs 25,000 and expenditure on medical treatment from Rs 60,000 to Rs 1,50,000 for senior citizens for taxation purposes.

The government may also examine the threshold in other areas to bring about uniformity on the issue. It may be noted that the ministry of social justice is also working on a policy for the old.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and 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