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: form 3cd :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: empanelment :: TDS :: VAT Audit :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: due date for vat payment
 
 
Direct Tax »
 CBDT signifies achievements towards eliminating domestic black money
 Seafarers get tax exemption from Ministry of Finance
 Financial institutions need to get accounts self-certified for FATCA by April 30
 Direct tax incentives to promote start-ups
 Employer didn't deposit the TDS it deducted on your salary. How to claim it?
 Central Board of Direct Taxes clarifies on cash curb, Aadhaar
 CBDT to issue PAN, TAN within a day to improve Ease of Doing Business
 Expats who stayed in India for 182 days or more must apply for Aadhaar card: CBDT
 CBDT accomplishes direct taxes collection target for FY 2016-17
  No relief to those who defaulted on 1st IDS installment: CBDT
 New Income Tax forms: What information is being asked for? All you want to know about the new rules

DTC sop: Govt plans higher basic income tax exemption limit, hike in medical & conveyance allowances
April, 03rd 2013

The government is ready with the direct taxes code (DTC) to shower goodies on taxpayers as it faces the prospects of an early election.

On the menu are higher basic exemption limit, increase in the allowances such as medical and conveyance that have remained unchanged for many years, and bigger incentives for savings.

"We are ready to move the bill at a two days notice. We have worked out the various scenarios of exemption limit and its implication for tax collections" a finance ministry official told ET.

The former finance minister Yashwant Sinha headed standing committee on finance that vetted the code has already suggested that the basic exemption limit be raised to 3 lakh. It stands at 2 lakh right now.

Finance minister P Chidambaram has already said that he would want to introduce the bill in the budget session, the second leg of which will begin on April 22 and last for a month.

"It's a good way of giving tax sops ahead of the election," the official said adding that the next budget will be a vote on account and the government will not be in position to give away too much.

The limit could be increased to 2.5 lakh or more if the economy begins the look up. Experts agree that there is not much in the direct taxes code anyway now.

Its most radical provisions have either been dropped or the ones like General Anti-Avoidance Rules ( GAAR) already incorporated in the law through the budget in the last couple of years.

'"The finance act 2012 brought forward a substantial portion of the DTC and there may not be many areas of tax legislation left,'' said Sunil Jain, partner, JSA & Associates.

Chidambaram had not increased the personal exemption limit in the budget citing the need for fiscal consolidation.

The DTC could allow for higher exemption limit from the next fiscal, allowing the government to take credit to the sops while ensuring that its finances are not impacted in the current year.

The standing committee has suggested that income upto 3 lakh be exempt from tax, 3 lakh to 10 lakh be levied 10% tax, 20% on 10 lakh to 20 lakh and 30% on income over 20 lakh.

At present the peak 30% rate is levied on income in excess of 10 lakh.

Similarly, the various deductions that have not been increased for many years could also be revised up through the Code. These include the 800 transport allowance, 15,000 for medical expenditure, 15,000 for health insurance for family and self and 12,000 for school fees.

The DTC code had proposed 1 lakh exemption for long-term saving and another 50,000 for life insurance, health insurance and fees paid for education of children.

The standing committee has suggested that the limit for savings be increased to 1.5 lakh and that for life insurance, health insurance and education to 1.5 lakh.

 
 
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