Latest Expert Exchange Queries

Make 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) | 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: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: VAT Audit :: TDS :: cpt :: ACCOUNTING STANDARD :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: form 3cd :: VAT RATES
 
 
« News Headlines »
 How to file tax return if you have two Form 16s
 10 things you should know about Form 26 AS
 How to file income tax return without Form 16
 How to rectify income tax returns
 Income-tax (21st Amendment) Rules, 2017
 Deadline for filing income tax return nears; here are 10 common mistakes that you must avoid
 All you need to know about form 26AS
 How to file income tax return?
 7 changes that affect income tax return filing this year
 How To File Income Tax Return (ITR) Online For FY2016-17? Last Date July 31
 Last date for filing income tax return approaches: What is Form 26AS? How it can help you claim refunds

Exemption cap for income tax may go up to Rs 1.5 lakh
February, 01st 2007

You may soon be able to tuck away Rs 50,000 more into saving schemes eligible for tax breaks, and thus save up to Rs 15,000 on taxes. This is likely to be the finance ministers gift to individual taxpayers this Budget.

The finance ministry is likely to raise the limit on savings that qualify for income-tax deduction from Rs 1 lakh to Rs 1.5 lakh. Investments in infrastructure bonds, bank deposits, contributions to life insurance premia, provident fund, deferred annuity schemes, public provident funds and so on qualify for tax deduction under Section 80C of the Income Tax Act.

The proposal, slated to be discussed with PMO, is in line with the governments objective of promoting investments in financial assets to spur growth. Household savings in financial assets stood at a mere 10.3% of GDP in 04-05 while savings in non-financial assets stood at 11.3%.

Banks are also under pressure to bolster deposits to meet growing credit demands. A hike in the 80C limit could increase deposit mobilisation, particularly for risk-averse individuals. Sweeteners like a shorter lock-in period for investments in bank deposits are also being considered to make them more attractive. At present, only bank deposits for at least five years qualify for Section 80C benefits.

Sources said the ministry is also weighing the pros and cons of restructuring the income-tax slabs to give relief to taxpayers across the board. But one view is that big-bang reform measures in personal I-T could perhaps wait till the 2008-09 Budget. Tax slabs were recast in the 2005-06 Budget along with the abolition of standard deduction.

One option is to raise the exemption limit and widen the tax slabs. This will leave more money in the hands of taxpayers. However, the government is also wary of possible criticism from the Left on lowering the tax liability of individuals with taxable incomes above Rs 10 lakh per annum.

The revenue department is not in favour of a second round of slab restructuring at this stage as it would entail a huge revenue loss.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

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