FinMin against raising Income Tax exemption limit to Rs 3 lakh

The Finance Ministry has rejected the recommendation of the Parliamentary Standing Committee headed by former Finance Minister Yashwant Sinha on raising the income tax exemption limit to Rs 3 lakh. The recommendation was made as part of the Committee’s report on the Direct Tax Code (DTC). Adjusting the slabs will cause tax revenue losses to the tune of Rs 60,000 crore a year to the exchequer, the Ministry has said.

It has, however, agreed to the recommendation on reducing the age for tax exemption for senior citizens from 65 years to 60 years. The Ministry has also rejected the recommendation on inflation-proofing the tax exemption.

The Finance Ministry released the proposed Direct Taxes Code - 2013 on Tuesday. Of the 190 recommendations made by the Committee, the Finance Ministry has accepted 153 either wholly or with partial modifications. In his Budget speech in February, Union Finance Minister P. Chidambaram had said that the government will seek public opinion on the revised DTC.

Earlier, the UPA Government had introduced the DTC Bill in the Lok Sabha in 2010 and later referred to the Committee. The revised DTC Bill will now be re-introduced in Parliament by the next Finance Minister post-elections.

The Parliamentary Committee had proposed no tax on income of up to Rs 3 lakh per annum; at the rate of 10 percent for Rs 3-10 lakh; 20 percent, for Rs 10-20 lakh and 30 percent on annual income beyond Rs 20 lakh. At percent, there is no tax on income of up to Rs 2 lakh per annum. Income of Rs 2-5 lakh attracts tax at the rate of 10 percent, 20 per cent on Rs 5-10 lakh and 30 per cent on income beyond Rs 10 lakh.

The revised DTC provides for a fourth slab for individuals, HUFs and artificial judicial persons with a view to maintaining overall progressivity in the levy of income tax. If their total income exceeds Rs 10 crore, it is proposed to be taxed at the rate of 35 percent under the revised DTC.

The revised DTC also said the income from a house property, which is not used for business or commercial purposes, will be taxed under the head ‘income from house property’.

The recommendations accepted include those pertaining to simplifying the structure and the content of the DTC for making it more user-friendly and at the same time “ensuring tax buoyancy by tapping high capacity/income and evasion prone segments”.

The recommendations ministry has rejected include the one on retaining the rate of taxation for life insurance companies at 15 percent against the proposed 30 percent and abolishing the Securities Transaction Tax (STT).

The Ministry has said that the revised DTC captures all assets for Wealth Tax, whether physical or financial, thereby removing the discrimination for taxation purposes against “conservative” taxpayers who invest their savings in physical assets.

The rate for the Wealth Tax is proposed (for individuals, HUFs and private discretionary trusts) at 0.25 percent. The threshold for the levy of in the case of individual and HUF is proposed at Rs 50 crores.

The draft Code also does away with the Settlement Commission as it has “not achieved the intended purpose of early settlement of cases and additional revenue realisation”.

The DTC Bill, 2010 had provided for a 50 percent threshold of global assets to be located in India for taxation. “This threshold is too high. There could be a situation that a company has 33.33 per cent assets in three countries but it will not get taxed anywhere.

Accordingly, the revised Code provides for a threshold of 20 per cent of global assets to be located in India for taxation...” it said.

Jayesh Sanghvi, National Leader - International Tax Services, EY says, “The proposed revisions relating to the onus of proof with regard to GAAR, transition provisions with repect to tax losses and MAT credit are welcome but the one on relaxing small shareholdings from the net of indirect transfers and the reduction of the threshold from 50 percent to 20 percent for substantial value may continue to some uncertainties”.

Source:http://www.thehindu.com/business/Economy/finmin-against-raising-it-exemption-limit-to-rs-3-lakh/article5858989.ece

INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2013-14 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.

CIRCULAR NO : 08 /2013 

F.No. 275/192/2013-IT(B) 

Government of India 

Ministry of Finance 

Department of Revenue 

Central Board of Direct Taxes 

 New Delhi, dated the 10th October, 2013 

SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2013-14 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961. 

Reference is invited to Circular No.08/2012 dated 05.10.2012 whereby the rates of deduction of income-tax from the payment of income under the head "Salaries" under Section 192 of the Income-tax Act, 1961(hereinafter ‘the Act’), during the financial year  2012-2013, were intimated. The present Circular contains the rates of deduction of income-tax from the payment of income chargeable under the head "Salaries" during the financial year 2013-2014 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department- www.incometaxindia.gov.in. 

2. RATES OF INCOME-TAX AS PER FINANCE ACT, 2013: 

As per the Finance Act, 2013, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2013-14 (i.e. Assessment Year 2014-15) at the following rates: 

To view the order click here....

EXEMPTION FROM FILING ITR (INCOME TAX RETURN) NOT EXTENDED THIS ASSESSMENT YEAR 2013-14 – CBDT.

       Income Tax Department issues press release to clarify that unlike previous year Salaried Employees with Total Income up to Rs.5 lakhs too have to file ITR (Income Tax Return) this year viz., Assessment year 2013-14.

       The full text of Press Release issued by CBDT (Central Board of Direct Tax) is as follows:

       The CBDT has, vide notification dated 1-05-2013, made E-filing of Return compulsory for Assessment Year 2013-14 for persons having total assessable income exceeding Five lakh rupees.

       The CBDT vide its earlier notifications had exempted salaried employees having total income up to Rs. 5 lakhs including income from other sources up to Rs. 10,000/- from the requirement of filing return of income for assessment year 2011-12 and 2012-13 respectively. The exemption was available only for the assessment year 2011-12 and 2012-13. The exemption was giving considering ‘paper filing of returns’ and their ‘processing through manual entry’ on system.

Special IT Return Receipt Counters for Salaried Tax Payers With Income Upto Rs. 5 Lakh.

      The CBDT has, vide notification dated 1-05-2013, made E-filing of Return compulsory for Assessment Year 2013-14 for persons having total assessable income exceeding Five lakh rupees.
 
           The CBDT vide its earlier notifications had exempted salaried employees having total income upto Rs. 5 lakhs including income from other sources upto Rs. 10,000/- from the requirement of filing return of income for assessment year 2011-12 and 2012-13 respectively. The exemption was available only for the assessment year 2011-12 and 2012-13. The exemption was giving considering ‘paper filing of returns’ and their ‘processing through manual entry’ on system.
 
           However, this year the facility for online filing of returns has been made user-friendly with the advantage of pre-filled return forms. These E-filed forms also get electronically processed at the central processing centre in a speedy manner. Hence, the exemption provided during the last two years is not being extended for assessment year 2013-14. Taxpayers are encouraged to file their returns electronically. E-filing is an easy, fast and secure method of filing of income tax return. Moreover, Digital signature is not mandatory for these taxpayers and they can transmit the data in the return electronically by downloading ITRs, or by online filing and thereafter submit the verification of the return in From ITR-V acknowledgement after signature to Central Processing Centre. The processing for E-filed returns is faster.

Raise I-T exemption limit to Rs 4 lakh: Congress.

   In a pre-budget meeting with Finance Minister P Chidambaram here on Thursday, Congress leaders have asked the UPA government to increase the taxable income exemption limit to Rs 4 lakh from the current Rs 2 lakh, while suggesting a pro-people budget with sops for the middle class and farmers keeping  the upcoming elections in mind.

   The meeting was held at the Congress party headquarters. With the rise in fuel prices impacting the ‘aam aadmi’, the meeting saw suggestions for varied pricing of petrol, diesel and cooking gas for people living below poverty line and low income group.

   Senior party leader Oscar Fernandes suggested there was a need to bring down the dependence on petroleum import and more focus on having alternative sources of energy like ethanol, sources said. Fernandes also wanted the government to reduce tax on bidis, noting that employment levels were coming down in the labour-intensive sector due to current tax slab.

   Congress leader Jagdish Tytler suggested that the budget should be formulated in a way that helps the party to connect with people as elections were ahead, sources said.  AICC Secretary P Sudhakar Reddy mooted raising the tax exemption limit of Rs 2 lakh to Rs 4 lakh, which was endorsed by many other office bearers.

    He also advised linking Mahatma Gandhi National Rural Employment Guarantee Scheme with agriculture to help meet the shortage of farm labour in the sector, besides offering three-year interest-free loans to small farmers for their children’s education.

   Suggestions were also made by party leaders for gender budgeting. Reddy advised the Finance Minister that female assessees could be given higher tax exemption limit.

   There were also demands by many leaders for bringing more clarity on the service tax as it was being interpreted differently in various states.

   Minority Department Chairman Imran Kidwai demanded increase in outlay of the Minority Affairs Ministry and allocation of more funds to minority institutions. He also advised formulation of special scheme for Most Backward Classes for their financial inclusion.
 
   Senior party leader Ajit Jogi complained that central funds were being diverted in many non-congress ruled states by the respective governments, suggesting some mechanism should be developed to check this, “The finance minister told us what are the difficulties and how the Indian economy was kept at a balance despite the tough global economic scenario. Thirty-two of the 46 office bearers present spoke on various issues related to farmers, weavers, education, health and income tax," party general secretary Janardan Dwivedi told reporters after the meeting.

Source: www.deccanherald.com

Govt. urges Tax Payers to disclose true income & pay Tax.

   Government Once again urges all Tax Payers to Disclose their true income and pay Appropriate Taxes within the Current Financial Year;

   Nodal Cell set up to Capture the Response and take Follow-up Action; an Online Monitoring System to Ensure Follow-up Action and Track Return Filing and Tax Payment of the Target Segment.

   The Union Finance Minister Shri P. Chidambaram has repeatedly emphasized that there is need for a non–intrusive tax administration to enable the tax payer to file his return and pay appropriate taxes.

   In the statement made by the Revenue Secretary to the media on 10th December 2012, he had stated that there is no advantage in suppressing the true income or avoiding paying income tax that is due because, sooner or later, the information available with the Income Tax Department will lead the department to the doors of such persons.

   The Directorate of Systems of the Income Tax Department has undertaken a business intelligence project to identify PAN holders who have not filed Income Tax Return and about whom specific information is available in 148 information codes of Annual Information Return (AIR), Central Information Branch (CIB) data and TDS/TCS Returns. Information in the Cash Transaction Reports (CTRs) of FIU-IND has also been included as part of this data matching exercise. This data analysis has identified target segment of 12,19,832 non-filers linked to more than 4.7 crore information records. Rule based algorithms have been used to identify high priority cases for follow-up and monitoring.

   In the first batch, letters are being sent to 35,170 PAN holders by the Directorate of Intelligence and Criminal Investigation. The letter contains the summary of the information of financial transaction(s) along with a customized response sheet and seeks to know whether the person had filed his Income Tax return or not. A Nodal cell has been set up to capture the response and take follow-up action. There will be an online monitoring system to ensure follow-up action and track return filing and tax payment of the target segment.

   The Government would once again urge all tax payers to disclose their true income and pay appropriate taxes within the current financial year.

Source:http://taxguru.in/income-tax/govt-urges-tax-payers-disclose-true-income-pay-taxes.html

Govt. to raise income tax exemption limit to Rs 3 lakh in revised DTC.

   The government will come up with a modified Direct Taxes Code (DTC) Bill after incorporating the suggestions of the Standing Committee on Finance, which among things had suggested raising annual income tax exemption limit to Rs 3 lakh.

   “Will come out with modified DTC (Bill) in response to Standing Committee suggestions,” said Advisor to the Finance Minister Parthasarathi Shome at a FICCI event here.

   He said the Finance Ministry is looking at the Bill and working on tax structures as suggested by the Parliamentary committee.

   The Parliamentary panel headed by senior BJP leader Yashwant Sinha in its report (March 2012) had suggested raising the annual income exemption tax limit to Rs 3 lakh as against Rs 2 lakh proposed in the original DTC Bill. Current tax exemption limit is Rs 1.8 lakh.

   It has also suggested that subsequent tax slabs be adjusted accordingly to provide relief to people reeling under the impact of inflation. The DTC will eventually replace the over five decades old Income Tax Act.

   “We are trying to see what could be the best in terms of transparency so that issues that are hurting industry could be covered adequately,” Shome said.

   He further said the Finance Ministry is also addressing the issue of expenditure control and that remains a major challenge.

   “We are looking into expenditure efficiency. We should do more in terms of efficiency. Issues on expenditure side is being addressed. Expenditure control is a major challenge and is being addressed by the Finance Minister,” he said.

   The DTC Bill, tabled in August 2010, was referred to the Standing Committee for scrutiny.

   Shome also said there has been some improvement on the government’s non-plan expenditure side since the time of financial crisis in 2008.

   Finance Minister P. Chidambaram had in November 2012 announced a fiscal consolidation road map wherein he plans to restrict fiscal deficit at 5.3 per cent of GDP in the current fiscal and bring it down to 3 per cent by 2016-17.

   Shome further said that the government is showing its intention to bring in clarity in tax laws and reforms in tax administration.

   “We have to increasingly do so (tax reforms). That is going to be a vehicle and we won’t put it on back burner,” Shome said.

   He also said the Ministry has asked National Institute of Public Finance and Policy (NIPFP) to calculate the impact of the proposed Goods and Services Tax (GST) on the GDP.

Tips for Salaried Persons to Save Income tax

   Often, investment for most individuals begins and ends with tax planning. Although it is pertinent to avail tax breaks, this should not be the sole focus. Start by jotting down your key financial objectives, the tentative time of money requirement and the corpus needed to achieve those goals. One can use tax saving investments effectively, to achieve financial goals. For example, one can take a children’s plan that also provides tax benefit. Consider the impact of inflation on your needs. After your first few working years, as income goes up, it is wise to invest beyond one’s tax saving investments to achieve your goals. Also, evaluate the life cover requirement, while planning for your taxes.

   As you begin your career, you may not have visibility on your needs. In this case, set a target of corpus achievement. For example, how quickly you can hit a corpus of Rs 1 crore from tax savings investments. You can accelerate this by increasing your contribution yearly, keeping in mind salary hikes and inflation.

   Having a goal makes the exercise of investing more interesting and there is always the corpus to look forward to. Having clarity will also help you keep track.

   There are a range of avenues with different levels of risk, return and liquidity. Choose an appropriate mix of investments to maintain an appropriate asset allocation and to help achieve your financial objectives. Past returns data may be misleading. Example, when markets are at a high and about to fall, equities will give you the best track record. Today, when markets are down, it could be a better time to invest with a three year horizon. The maturity should suit the needs you are planning for. Keep in mind the tax you need to pay on the returns.

Maximising your tax saving

   1. Exemptions/reimbursements – Identify the reimbursements available from the company and take maximum advantage of the same. Normal expenses that one incurs could help save tax. Example- Telephone/fuel reimbursements, meal vouchers and company car. A person in lower tax slabs can reduce his tax liability to nil with exemptions alone.

   Similarly, salaried employees staying in rented apartments can claim exemption under Section 10(5) of the Act in respect of house rent allowance by making the HRA a component of there salary.

Some of The Popularly Known Exemptions/Reimbursements House Rent Allowance

Minimum of -

   1. Actual HRA

   2. Rent Paid – 10% of Basic

   3. 40a% of Basic (Non-Metros) or 50% of Basic (Metros)

Conveyance Allowance

   Rs 800 / Month

Leave Travel Allowance

   Two trips in a block of 4 Yrs Amount not exceeding Air Economy or Rail AC I Fare shall be for shortest distance and for a single destination

Medical Reimbursement

   Rs. 15,000 / Annum

2. Deductions

   Section 80C allows a maximum limit of Rs 1 lakh across investments ranging from provident fund, PPF, infrastructure bonds, fixed deposits (5 years or more), NSC, insurance/pension plans, unit linked insurance, equity linked savings scheme etc. It also includes tuition fees of your children and the repayment of principal on your housing loan.

The interest component on your home loan has a separate limit of Rs 1.5 lakh.

   Medical premium upto a maximum of Rs 15,000 qualifies for deduction, with an additional Rs 15,000 for parents. Additional deduction of 20,000 could be availed in case of a senior citizen.You can claim a separate deduction for medical premium of your parents.

   A person with disability or those who have spent money on the maintenance (including medical treatment) of dependant persons with disability, could avail deductions under section 80U and 80DD of the Act, respectively.

   Individuals paying interest on education loan should obtain the interest payment certificate under section 80E of the Act.

Source:http://taxguru.in/income-tax/tips-to-save-income-tax-for-salaried-person.html

Deduction u/s. 80C for tuition / school / education fees.

Deduction u/s. 80C for tuition / school fees paid for education of children.

   Who is Eligible: Deduction for tuition fees u/s. 80c of the Income Tax Act 1961 is available to Individual Assessee and is not available to HUF.

   Maximum Child: Deduction under this section is available for tuition fees paid on two children’s education. If Assessee have more then two children then he can claim tuition fees paid of only two children’s. The Deduction is available for any two children.

   Here we would like to mention that husband and wife both have a separate limit of two children each, so they can claim deduction for 2 children each.

   Expenditure  paid for self education not allowable: - This is the only clause u/s 80 C where assessee can not claim tax benefit for expenditure incurred for self. In other words if assessee has paid tuition fees for his own studies, he will not be eligible for deduction.

   Fees paid for spouse: Deduction is not available for tuition fees paid for studies of spouse.

   Maximum Limit: Deduction for tuition Fees is available up to Rs.100000.  Please Note that aggregate amount of deduction  under section 80C , 80CCC and  80CCD shall not  exceed Rs. 1,00,000/-

   Deduction available on payment basis: - Deduction under this section is available on payment basis.  Fees may be related to any period. For example feed paid for April 2009 if Paid in March 2009 will be eligible for deduction u/s. 80C in A.Y. 2009-10.

   Deduction not available for part time course:- The deduction is available for Full Time courses only.   In our opinion no deduction is available for part time or distance learning courses.

   Fees for Private tuition/Coaching Classes not eligible for deduction u/s. 80C :- The fees should be paid to university, college, school or other educational institution. No deduction available for fees paid for private tuition’s , coaching courses for admission in professional courses or any other type of courses are not covered as that fee is not paid for FULL time education.

   Location of University, college, school or other educational institution: University, college, school or other educational institution must be situated in India though it can be affiliated to any foreign institutes.

   Allowability of pre-nursery, play school and nursery class fees: - Pre-nursery, play school and nursery class fees is also covered under section 80C (circular 9/2008 & 8/2007).

Not allowable Expenses:-

   1. Development fees or donation not eligible.

   2. Transport charges, hostel charges, Mess charges, library fees, scooter/cycle/car stand charges incurred for education are not allowed.

   3. Late fees is not eligible for deduction.

   4. Term Fees is not eligible for deduction.

   5. No deduction for part time or distance learning courses.

   6. no rebate for private tuition.

   7. Building fund or any donation etc not allowed.

Note: Above list is not exhaustive.

Summary of Above Provisions

   1) Deduction from taxable income under Section 80C is available to individual taxpayers up to a maximum amount of Rs1 lakh for education expenses incurred for one’s children.

   2) Each parent can claim the deduction for the tuition fees paid for up to two children each, thereby covering a maximum of four children in a family.

   3) This deduction is available to the parent who has made the payment, to the extent of the tuition fee actually paid or Rs1 lakh, whichever is lower.

   4) The deduction can be claimed only for full-time courses including pre-nursery and playschool. Part-time, distance learning courses, private tuitions and coaching classes are not covered.

   5) This deduction can be availed of on the basis of actual payment made, irrespective of the period to which the fee may pertain.

   6) Only the tuition fee paid is eligible for deduction. Other expenses, such as transport charges, library charges, hostel charges, development fees or donation, are not covered.

FREQUENTLY ASKED QUESTIONS ON DEDUCTION FOR TUITION FEES U/S. 80C

  Q. Can an unmarried person can claim deduction u/s 80C of Income tax Act, 1961 for school fee paid for 2 children?

   Ans: Yes he can. As clause (c )  of subsection 4 of Section 80C only speaks of children’s of Individual.  Section 80C is silent on legality of child and it does not say that child should be legal child.

  Q. Can I claim deduction u/s 80C of Income tax Act, 1961 for my adopted child’s school fees?

   Ans: Yes you can. As section 80C again silent and do not specify that child should be biological child for the purpose of claiming deduction under clause (xvii) of section 80C.

  Q. I have divorced to my wife and have custody of my son with me and paying his school fees. Will I be eligible for deduction u/s 80C of Income tax Act, 1961 for school fee paid on his education?

   Ans: Yes you will. As section 80C do not specify that marriage should continue to claim the deduction under clause (xvii) of section 80C.

   Q. Can I claim deduction under section 80C for tuition fees paid to an Indian institution for my wife’s education?

   Ans: No you can’t claim. Deduction u/s. 80C is available only for tuition fees paid for two children’s education.

  Q. I and my wife both paid for education of our one child. My wife paid 70,000 and I paid 1,10,000/- can we both claim deduction?

  Ans: Yes both of you can claim deduction u/s 80C up to a maximum of Rs.  1,00,000 each.  You can claim deduction up to 100000/- and your wife can claim deduction of Rs. 70,000/-.

  Q. I am currently working and studying. If  I pay my tuition fees out my own earnings and do not take an educational loan, will I get any tax benefits?

   Ans: The tuition fees paid by you will not make you eligible for any tax benefits. You will not be able to claim any income tax deduction.

   Q. I am a working women and I am paying the education fees for my husband education. Can I claim the deduction for this?

  Ans: Payment of tuition fee up to Rs 1 lakh can be claimed as deduction u/s 80C of the I T Act. But the payment of tuition fee for full time course must be for for any two children of individual. It follows therefore one can not claim deduction for payment of tuition fee for his/her spouse.

   Q:- Section 80C allows deduction in respect of tuition fee but excludes payments towards development fees, donations or payments of similar nature.

   Does this mean that the items not specifically excluded, such as fees for games, magazines, stationery, Parents’ Teacher Association fees, Staff Benefit Fund, Gratuity Fund, and hostel will not qualify for the deduction?

  Ans:- None of these will qualify for deduction under Section 80C of the Income-Tax Act, 1961.

   The deduction available under this Section is for sums paid as tuition fees (excluding any payment towards any development fees or donation or payment of a similar nature) whether at the time of admission or thereafter to any university, college, school or other educational institutions within India for the purpose of full-time education of any two children of an individual. The principle requirement for qualifying for deduction under this provision would be that the fee paid should be in the nature of tuition fee. All of the items enumerated by you are essentially not in the nature of tuition fee, and so cannot qualify for deduction.

   You may note that the development fee or donation or payments of a similar nature even if they are in the nature of tuition fees will not qualify for the deduction under this Section.

   Q:- Can Mother claim the benefit of tuition fees paid for his son/daughter.

  Ans:  Assessee means both mother and father both can take the benefit u/s 80 C for amount paid by them respectively.

   Q:- If a couple have four children, can they both claim fees for two children each?

  Ans: Yes ,husband and wife both have a separate limit of two children each ,so they can claim deduction for 2 children each.

  Q:- If a Couple has one child and paid a fees of 200000 rs can they both claim tuition fess 100000 each ?

   Ans:  yes ,they both can claim deduction for 100000 each subject to they have actually paid same amount .If husband has paid 1.50lac and wife has paid 50000 then husband can claim 100000 and wife can claim 50000.

   Q:-  Ram has paid tuition fees for his child 2000/- in February 2011  relates to period march to June 2011 ,how much amount he can claim deduction in assessment year 2012-03?

   Ans:  He can claim full 2000 Rs in assessment year 2012-13 , as this deduction is available on the basis of payment and it may or may not be related to the period in which it has been paid.

  Q:-  Is Late fees paid with tuition fees is eligible for deduction ?

   Ans:   No,late fees is not eligible for deduction.

EXTRACT OF SECTION 80C

Clause xvii of section 80C

   xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,

   (a) to any university, college, school or other educational institution situated within India;

   (b) for the purpose of full-time education of any of the persons specified in sub-section (4);

Subsection 4 of Section 80C

   “(4) The persons referred to in sub-section (2) shall be the following, namely:

   (a) ………………….
   (b) …………………..

   (c) for the purposes of clause (xvii) of that sub-section, in the case of an individual, any two children of such individual.

Note- (Republished with Amendments)

Source:http://taxguru.in/income-tax/deduction-us-80c-for-tuitionschool-fees-paid-for-education-of-children.html

Unions pitch for hiking I-T exemption limit to Rs 5 lakh/annum.

The I-T exemption limit for individuals stands at Rs 2 lakh per annum at present

   Trade unions today demanded 12% interest on PF contributions of employees and a hike in income tax exemption limit to Rs 5 lakh in their pre-budget meeting with Finance Minister P Chidambaram.

   The unions have also asked the government not to raise FDI cap in financial sectors like insurance and banking.

   The I-T exemption limit for individuals stands at Rs 2 lakh per annum at present.

   Several unions, including CITU, AITUC, INTUC and BMS, in a joint memorandum to Chidambaram have expressed their opposition to the banking reforms bill saying it would encourage private banking at the cost of public sector banks.

   They also demanded that a progressive taxation system be put into place and concrete steps be taken to recover large accumulated tax arrears, effective measures to unearth huge accumulation of black money, including the unaccounted money in tax heavens abroad.

   Chidambaram, while making his opening remark at the meeting with the representatives of 12 trade unions, said that a slowdown in the manufacturing sector is creating unemployment and there is a need to create job opportunities.