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: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: empanelment :: form 3cd :: list of goods taxed at 4% :: VAT RATES :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: due date for vat payment :: VAT Audit
 
 
« General »
 Income Tax Dept to probe deeper into suspicious bank accounts
 Modi may lower taxes to spur demand in his budget sops
 Tax breather for foreign investors: All you need to know
 What the increase in tax collections does not tell us about Indian economy post demonetisation
 India’s crazy retrospective tax on foreign funds will tarnish country’s reputation
 How tax related, PAN grievances can be resolved through E-Nivaran
 Tackling income tax exemptions for equities and agriculture
 Amfi wants tax benefits for retirement plans
 Top five factors which could chart market direction in the coming week
 Tax rate hikes boost shadow economy
 Tax mop-up may decline in new amnesty scheme

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