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: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: VAT Audit :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: articles on VAT and GST in India :: TDS :: VAT RATES :: list of goods taxed at 4% :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt
« General »
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces

Trade unions oppose tax on PF withdrawals
January, 15th 2010

Central trade unions on Thursday joined hands to mount pressure on the government to shelve the new Direct Taxes Code, which proposes to tax withdrawals from savings schemes including Provident Fund.

Trade unions affiliated to the Left, right and centre conveyed their opposition to the proposal to finance minister Pranab Mukherjee during a pre-budget meeting. In a joint memorandum listing out their suggestions for the budget, trade unions said the new tax code proposed to introduce the Exempt Exempt Taxation (EET) process which means that contributions are exempted, accumulation is exempted but withdrawals are taxable.

Trade unions are particularly against taxing withdrawal on savings. Leaders of trade unions said it would affect retirement benefits and also unskilled workers. The code proposes that gross salary will include the value of leave travel concession, amount received on encashment of unavailed leave on retirement, even the superannuation benefits like compensation under voluntary retirement benefits, PF, amount of gratuity on retirement or death and amount received on commutation of pension, the memorandum said. At present, there are no taxes on these schemes.

TUs proposed that the government hold detailed discussions with them on the matter. However, the code proposes reintroduction of tax on long-term capital gains, a demand which the trade unions are also making.

TUs demanded raising the tax exemption limit (this time to Rs 2 lakh) and bringing ITEs, outsourcing sector, educational and health services run on commercial basis under the service tax net. They asked the government not to re-impose fringe benefits tax.

With food inflation levels reaching an all-time high, the trade unions demanded that the budget focus on curbing price rise. For this, they suggested strengthening of the Public Distribution System, more investment in agri sector, measures to stop forward trading, ensure that lavish bank loans for food traders are not granted and more teeth to the Essential Commodities Act.

Besides this, the trade unions wish list at the ritualistic pre-budget meeting was more or less a reinforcement of its earlier demands higher taxes on security transaction tax, enhancing wealth, corporate and gift taxes, recovery of non-performing assets and unearthing black money including the unaccounted wealth in tax havens.

They also reiterated the five demands on which all the trade unions, including Congress Intuc and RSS-affiliated BMS came together last year.

These are stopping disinvesment profit-making PSUs, steps to contain price rise, creation and protection of jobs, enforcement of labour laws and creation of a fund for the unorganised sector.

They also asked the government to extend NREGA to urban areas and provide employment for a minimum of 180 days, as recommended by the ILO.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

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