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 :: articles on VAT and GST in India :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: VAT RATES :: Central Excise rule to resale the machines to a new company :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: due date for vat payment :: list of goods taxed at 4%
General »
 GST Network signs MoU With DGFT for sharing of foreign exchange realisation data
 Number of companies paying tax over Rs 100 crore declines in 2013-14
 Tax and the dilemma of the self-employed
 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

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 2016 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