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: due date for vat payment :: list of goods taxed at 4% :: empanelment :: Central Excise rule to resale the machines to a new company :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: VAT Audit :: VAT RATES :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: articles on VAT and GST in India
News Headlines »
 CBDT releases Income Tax Return statistics for last two fiscals
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers

Pvt PF & superannuation funds' equity returns set to be tax-free
December, 11th 2008
The returns earned by private provident funds and superannuation funds from their investments in shares of companies will not attract income tax as the government plans to give such investments tax-free status, according to finance ministry officials. The finance ministry, which has allowed the entities to channelise up to 15% of their corpus in equities, is now set to amend the income-tax rules to facilitate this. The tax-free status would allow more of retirement savings to flow into shares, which over a long period earn higher returns those other assets. Private sector companies having more than a certain minimum number of employees can seek permission to manage the retirement savings of their employees instead of giving the corpus to the Employees Provident Fund Organisation, a government entity. The Central Board of Direct Taxes (CBDT) is likely to carry out necessary changes in the income-tax rules to allow private provident funds and superannuation funds to allow their equity investments tax-free status. A finance ministry official, who did not wish to be identified, said the change in rule could be done through a notification and would not require an amendment in the Income Tax Act. A change in the Act can be effected by way of the legislative process, through the Finance Act in the Budget. The department of economic affairs (DEA) under the finance ministry had notified new norms for private provident fund trusts in August this year, permitting them to invest up to 15% of their corpus in the stock market instead of the earlier 5%. The new investment pattern comes into effect from April 1, 2009. The department of economic affairs has now written to the CBDT asking it to carry out amendments in its income-tax rules. Income-tax rule 67 prescribes an investment pattern for private provident funds and superannuation funds which is to be followed to avail tax benefits: income earned on investments that fall outside the pattern prescribed is liable to tax. Therefore, in absence of the tax-free status, even though a higher allocation for equities is allowed, the returns would have been subject to tax. The official said that although most of the significant changes in the income-tax laws are made through the Finance Act, the CBDT will not wait for the Budget to effect the amendment. With the present governments term ending in May, there may not be a full-fledged Budget 2009. The new investment norm prescribed by the DEA will come into effect from April 1 and trusts following it will not be able to avail tax benefit since it would be in deviation of the income-tax guidelines. The move to allow tax benefit for equity investments by private provident funds and superannuation funds would facilitate more retirement savings to flow into the stock market and help it deepen further.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

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