Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TDS :: VAT RATES :: ACCOUNTING STANDARD :: cpt :: articles on VAT and GST in India :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: empanelment :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: ACCOUNTING STANDARDS
 
 
« General »
 Advance tax payout by top cos grows just 2% in Sept quarter
 Why abolishing personal income tax may not be a good idea
 Questions about the GST cess
 How to prepare for the looming tax-extension deadline
 Income tax: Gratuity for employees raised to Rs 20 lakh; here is how you will benefit
 Haryana to set up scrutiny panel on GST benefits
 Waive certain taxes for companies in insolvency proceeding
 I-T department to appoint 7600 more tax return preparer scheme to cover entire country
 All eyes are on GST as Centre plans higher social pension
 Exporters demand total exemption from GST
 Here's what you must know to stay clear of taxman

Pension products likely to make tax exemption cut
September, 01st 2010

Pension products offered by insurers and mutual funds could be included in the long-term savings schemes eligible for tax concession available to individual under the new Direct Taxes Code provided they meet the norms laid out by the government.

The DTC Bill tabled in Parliament does not mention these schemes, creating the impression that investment in them will not be eligible for tax benefits, which could have reduced their attractiveness to individuals.

We will soon hold discussions with the department of financial services on the guidelines for pensions funds eligible for tax benefits, a Central Board of Direct Taxes (CBDT) official told Media.

However, these pension products will have to follow the uniform framework prescribed by the department of financial services for retirement products to be eligible for concessions.

These guidelines will specify details such as how much money can be withdrawn one time and when to discourage premature withdrawal and will ensure that they encourage long-term retirement savings.

The idea is to treat all pension products that follow an agreed framework and are in actual term a long-term savings on par, the official added.

The new DTC proposes `1 lakh exemption for individual taxpayers for contributions to retirement savings including provident funds, gratuity funds, new pension scheme, superannuation funds. Investments in these schemes will not be taxed at any stage contribution, accumulation or withdrawal as these are being including under the EEE category or Exempt-Exempt-Exempt category.

However, confusion prevailed over the tax treatment of these products in the industry. Pension funds run by mutual fund houses dont get covered under the DTC. This would create disparity vis-a-vis other pension products, UTI chairman and managing director UK Sinha said at an ADB conference in the capital.

Tax experts said the CBDT will have to separately notify such funds to make them eligible for tax benefits as the Bill as such does not provide for it.

The Bill lists out the schemes that will be eligible for incentives in the `1 lakh limit, but also gives the authorities the power to add more schemes.

Clearly, if any other scheme or fund is to be covered for this deduction, then it needs to be specially notified by the government, said Vikas Vasal, executive director, KPMG.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

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