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 :: ACCOUNTING STANDARD :: due date for vat payment :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: form 3cd :: ACCOUNTING STANDARDS
 
 
Direct Tax »
 Best 5 Income Tax-Saving SIP plans in India: How To save taxes by Investing in SIPs under 80C
 Tax refund checks are finally in the mail
 Income Tax dues in advance can be paid at RBI or at authorised bank branches by March 2017
 Why you must be looking beyond tax planning
 I-T dept. to lauch app for paying tax
 CBDT to taxman: Step up TDS survey operations to boost collections
 Tax Officers Asked To File Self-Appraisal Report On E-Assessment
 CBDT to taxman: Step up TDS survey ops to boost collections
 Govt to issue exemption list on new tax for unlisted firms
 CBDT issues third round of certificates to tax payers
 Central Board of Direct Taxes (CBDT) signs four more unilateral Advance Pricing Agreements (APAs)

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