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 :: form 3cd :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: TDS :: VAT RATES :: ACCOUNTING STANDARDS :: empanelment :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4%
 
 
General »
 Simplified one page Income Tax Return Form: Changes to keep in mind before filing tax return for AY2017-18
  No proposal to replace Income Tax with Banking Cash Transaction Tax
 GST coming July 1 despite calls for delay: Revenue Secretary Hasmukh Adhia
 Centre introduces provision of taxation on NPS in Income Tax Act
 Income Tax Department Clarifies On Cash Withdrawal From Banks, Post Offices
 The Goods And Services Tax (Compensation To States) Bill, 2017
  Goods and Service Tax (GST) and Real Estate Sector
 New Income Tax Rules On Home Loan Come Into Effect
 Here's how late filers can save on stress and taxes
 Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib ?Kalyan Yojana, 2016
 Companies should invest in upgradation of tax technology

Budget 2012: Finance panel for less tedious TDS for senior citizens
March, 06th 2012

Non-residents and senior citizens could be in for some tax relief if the government accepts the recommendations of parliament's standing committee on finance that has proposed a less burdensome tax deduction at source, or TDS.

In its recommendations on the direct taxes code, or DTC, the committee has suggested that there should not be any TDS on interest earnings of senior citizens from their fixed deposit investments. "We want tax deduction at source regime to be less tedious," said a member of the panel. The panel is expected to submit its report in a week's time.

The former finance minister Yashwant Sinha headed panel has also suggested that a non-resident should not face any TDS if his income does not accrue in India.

If accepted, the provisions will reduce the administrative burden on these taxpayers.

At present, 10% tax is deducted at source on interest income in excess of Rs 10,000 per annum. Senior citizens can, however, submit a special form called Form 15H and to prevent deduction if they have no taxable income.

If they fail to submit this form then they have to claim a refund after filing a return.

Though, the present tax regime provides for relief the DTC Bill does not have explicit provisions for it.

Senior citizens enjoy a basic tax exemption on annual income of upto Rs 2.40 lakh. "The idea to maintain continuity and ensure that there is no harassment," the person told ET.

The nearly 50-year old income tax act says clearly that income cannot be chargeable to tax in India if it does not accrue here in case of non-residents.

But the DTC overrides the provisions under double taxation avoidance agreements if the tax authorities feel that income had accrued in India. The provision was specifically brought in to prevent any abuse of the treaty provisions that caused loss of revenue.

The panel wants a specific provision in the code to clear this uncertainty.

Tax experts also favour an explicit provision in the law. "These benefits are available under present law and these should be carried into the DTC as well," said Amitabh Singh, partner, Ernst & Young.

Tax authorities maintain that these clarifications could come in the rules and the code need not be burdened with these provisions.

The TDS is considered a neat and nopn-intrusive way of collecting tax. It can be adjusted against a taxpayer's actual tax liability later and if there is no liability taxpayer can avail a refund.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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