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: empanelment :: form 3cd :: ACCOUNTING STANDARDS :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: articles on VAT and GST in India :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: VAT RATES
 
 
« News Headlines »
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya
 No decision yet on imposing tax on cash transactions

Burdened by Income Tax? Former Finance Minister Has a Plan
February, 10th 2016

Only 3 per cent of over 1 billion people in India pay income tax, so it's not surprising that the salaried class often complains about high taxes. Accountancy firm PricewaterhouseCoopers (PwC) found in 2014 that the take-home salary of a high earner in India is less than that of salary earners in many developed countries like UK, Canada and US. (Read)

Individuals earning as little as Rs. 21,000 per month have to pay taxes, according to current income tax rules. Unsurprisingly, there's a consensus among tax experts that the government should increase exemption limits on several kinds of allowances to reduce the income tax burden on middle class.

Former Finance Minister Yashwant Sinha told NDTV Profit that he had recommended the exemption limit for personal income tax to be raised to Rs. 3 lakh per annum in 2012.

More importantly, Mr Sinha, as the head of the parliamentary standing committee on finance on the Direct Taxes Code Bill, had recommended that the exemption limit on income tax should be linked to the cost of living. (Watch)

"Just as government employees get Dearness Allowance (DA) based on the cost of living index, similarly this threshold (exemption limit) should increase automatically based on cost of living every year. Then nobody will crib, nobody will say that prices have gone up and my income remains the same, and I am paying more taxes," Mr Sinha said.

The DA is a cost of living adjustment allowance paid to government employees and is calculated as a percentage of basic salary to ease the impact of inflation on people.

Analysts say Mr Sinha's suggestion to link the exemption limit to cost of living is an effective way to reduce the tax burden on salaries employees and should be considered by Finance Minister Arun Jaitley.

The Direct Taxes Code Bill sought to replace the 60-year-old income tax law. But it is unlikely to be implemented as Mr Jaitley last year said that most of the provisions of the proposed code have been integrated into existing tax law.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

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