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: cpt :: form 3cd :: VAT RATES :: articles on VAT and GST in India :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: empanelment :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
« Budget Extravaganza »
 With demonetisation inducing tax compliance will PM Modi cut tax rates in Budget 2017?
 State plan budget utilisation in Odisha
 Maharashtra wants budget advanced to February
 Coastal economic zones may get 10-year tax exemption in next Budget
 Why advancing the Union Budget date may not make much difference
 Govt keen 2017-18 budget should not clash with polls: Arun Jaitley
 Finance Ministry seeks industry suggestions on taxation for Budget
 Budget should focus on fiscal firm up
 Finance ministry keen to present Budget on February 2 or earlier
 Poor railway performance may mar merged Budget
 Cabinet’s formal nod to be sought for Budget on Feb. 1

Tax benefits unlikely for individuals in Budget
January, 11th 2016

Faced with a challenging financial scenario in 2016-17, the Union Government is unlikely to dole out any income tax benefits to individual payers. It, however, may consider levying additional measures for revenue mobilisation.

“The fiscal space will be severely restricted in 2016-17 due to additional expenditure commitments. Further, there will also be boost to many individual taxpayers through the Seventh Pay Commission so additional incentives may not be required in the Union Budget,” said two officials familiar with the development.

The move would be a break from the last two Budgets when Finance Minister Arun Jaitley provided significant sops to personal income taxpayers.

While the Minister raised the deduction limit for health insurance in this Budget, he had hiked the personal income tax exemption limit by ?50,000 in the 2014-15 Budget.

Seventh Pay panel burden
The thinking comes as the Finance Ministry tries to balance the additional spending of nearly ?1,40,000 crore on the implementation of the Seventh Pay Commission report and the One Rank One Pension scheme in 2016-17 while maintaining its fiscal deficit targets and boosting public investments in infrastructure.

Low chances
Tax experts too said that the chances of a tweak in the personal income tax slabs are low in the forthcoming Union Budget.

“There are expectations of relief from the common man on personal taxes. The government could consider options such as making the tax regime for National Pension System to exempt exempt exempt status (E-E-E). Alternatively, it could also provide relief by hiking the allowance for conveyance, medical expenses or children’s education that have not been revised for long,” said Divya Baweja, Partner, Deloitte Haskins & Sells.

Additionally, the Finance Ministry is also considering imposing further checks on black money that would also help raise tax revenue.

One of the proposals on the discussion board is to review the sources for Annual Information Returns that captures data on high value transactions by taxpayers.

TDS collections
The Finance Ministry is understood to be also considering widening the scope of tax deducted at source for more transactions.

“These are part of initial discussions. The focus will be to widen the tax collection base while ensuring that the tax administration remains friendly and does not harass individual taxpayers,” one of the officials stressed.

Sources said the Finance Ministry is also hoping for a healthy rise in income tax collections next fiscal on the back of higher salaries and pensions to a sizeable part of the taxpayer base. Initial estimates reveal that tax authorities may project about a 20 per cent rise in personal income tax collections next fiscal.

 

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software 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