New Income Tax code – It’s time to act

Recent Posts

• Consolidated instructions proposed for reservation
• Govt introduces low cost tablet Computer
• Need for revising CGEGIS (Group Insurance)
• Cadre Restructuring of Central Secretariat Services (CSS)
• How to add New Rupee Font in your computer
• LIC leads in NPS
• Dynamic Periodic Table-A gift for Students and Teachers
• Clarification on reimbursement of LTC-80 Fare

49 Responses to “New Income Tax code – It’s time to act”

1. 

   PRAMOD said on Sunday, August 16, 2009, 15:53

   Dear Hornable Finance Minister,
   It is logical to increase the 80-c limit, but lot of limitations,
   That all income are taxable, as previosly lot of rebates. Do you think that you are going to help the salaried persons.
   My idiea is that kindly reindruduce standard dedtection that may not less than 1 Lakh., and all retirement benifits are remain nontaxable. the house intrest rebate may be reduce upto rs. 50,000. transeport allowance may also be not taxable. Your priposal of proposed income tax not benificial for salaried person it mat be benificial for bussines cllas only. In democracy any difference in salry class and bussines people.
   PRAMOD

   Reply
2. 

   padmanabhan said on Sunday, August 16, 2009, 16:46

   sir,
   the new code has positive inclusion such as 10% IT upto 10 lakh income p.a. and new section 66 permitting savings upto 3 lakhs for income tax purpose. we salarid people expect from FM not to withdrawan the exemption for repayment og interest for Housing loan (both for self occupied and rent it out).in conclusion:
   Also, while the saving limit has been hiked, the number of instruments has been brought down.Also, while the saving limit has been hiked, the number of instruments has been brought down.EET is govt. decision but it can be enforced for savings after the implementation of new tax code.also deduction for the interest paid on loan received for higher education to be considered a separate exemption for those who have applied/get education loan till the commencement of new IT code. like leave encaashment during superannuation/retirement is exempted for IT like that the savings like GPF NSC be also excempted from IT superannuation/retirement people.if there is withdrawal during service they may be taxed to discourage savings for IT purpose only.thanking you, yours sincerely,v.padmanabhan(VCRC) Pondicherry

   Reply
3. 

   ANIL KUMAR said on Sunday, August 16, 2009, 18:22

   Sir,

   In my view, it is a move to bring back the money which has already been paid towards the increase in salary and payment of arrears for salaried class. Now, I would like to know whether it is applicable to all people including politicians, rich peoples or only applicable to the salaried class? In this context, it will be good that each and every body should be taxed, whoever it may be, to strengthen Indian economy by way giving tax as every body are serving the nation in some manner.

   Reply
4. 

   laisram leingmba said on Sunday, August 16, 2009, 19:09

   Salaried class are always duped by this government as regards taxation as seen in the earlier years still too early to comment until the final draft is announced

   Reply
5. 

   Akshara said on Sunday, August 16, 2009, 19:57

   The new tax code may not be beneficial in respect of inclusion of all perquisites under taxable income and withdrawal of benefits for reimbursement of medical treatment and Leave travel concession. But the main advantage for salaried people having taxable income over 5,00,000 is that they now come under 10% slab instead of under 20% and 30% slab. This itself is a major benefit and added to that the new section 66 helps you to subscribe more towards provident fund and insurance premium. The withdrawal of benefit for capital and interest repayment for Housing finance for self occupied houses is logical as the income from self occupied property is already zero and claiming rebate under non existent income from other incomes is reasonable enough. In case of rented properties, since the rental income from such properties is taxed as income from house property, the deduction under both capital and interest repayment is still allowed under section 66 (new) and section 24. Overall, the code is much simpler and one need not go after tax experts in filing tax returns directly by themselves. The withdrawal of Capital gains tax for LTCG for transactions in equities and MF redemption is a bit retrograde, but if these are included as part of other incomes and taxed at the same rate as IT rates, it is welcome especially if STT is totally abolished.

   Reply
6. 

   RAJEEV M said on Sunday, August 16, 2009, 20:09

   The cry over the new Direct Tax Code is a Natural Resistance by the Government Employees (including me), which emerged out of the un-resistable urge to OPPOSE everything new. (Remember, we opposed the office automotion / introduction of the Computers in Offices). The present threshold limit of 1.6 lakhs is very hard to achieve for majority (upto the grade of UDC/Newly recruited Assistant) whose gross pay will be 20000/- without HRA, as we hope to have a savings of approx 7000 per month towards PF/LIC etc. The next threshold limit of Rs.10,00,000/- in the gross income without any saving will be for those with PPB +GP of Rs.65000/- as of now without HRA and Rs. 52000/- with HRA. The level is of atleast JS/Director respectively. Including HRA and all other allowances, an official upto the level of Under Secretary will hardly get a Gross Monthly Pay of Rs.60,000/- which adds upto 7,20,000/- per annum. If he (the highest taxed) is able to make a saving of Rs.1,00,000/-, he will be paying a tax of Rs.46,000/- which is equal to what an individual pays as of now. If you are able to save more, upto 3 lakh, you will save another 20,000/- as tax and will pay only 26,000/-. Further, the tedious calculations and dis-honest ways to get benefits of deductions will end to some extend. The FINANCE MINISTER should ALSO include ways to RECOVER THE UNPAID TAXES FROM OTHER TAX EVADORS WITH CONNECTIONS, INCLUDING THE POLITICIANS, BUSINESS HOUSES, CINE ARTISTS ETC.

   Reply
7. 

   Gulshan Malhotra said on Sunday, August 16, 2009, 23:59

   Tax rebate for rent paid (80G I think) has not been changed though other limits have increased. What decent accomodation is available for 10% of taxable income and 2000/- pm???
   Salaried class is the only class which pays income tax regularly and accurately. Even we pensioners are regular. Why not give the benefit of standard deductions to them?
   Returns from PPF are to be taxed. Is not that a slap in the face???
   Will Manmohan jee and Chitambram jee have a look at this???

   Reply
8. 

   Jayadev said on Monday, August 17, 2009, 10:30

   The purpose of revision of IT code is not to give benefit to any class, including ’salaried’.
   Govt. want to increase the tax contribution, (how they can decrease taxes while expenditure is rising?). Let us discuss how the salaries class may avert such adversaries when compared to business class which can manipulate the income in statements whereas the former has little control on the TDS system.

   Reply
9. 

   Jayanand. V said on Monday, August 17, 2009, 12:36

   dear all,
   we are all posting our comments here, instead of on the MoF site.
   this site is easily accessed at the link provided on the article above.
   so pl make your critical comments on that site, as I did now.

   Reply
10. 

    saqquaf said on Monday, August 17, 2009, 14:28

    Income Tax burden on Salaried Class

    The Govt. is taking about reintroduction of Standard Deduction and increasing of slab limits to reduce taxes. But the fact is that the Govt. should abolish the Income Tax to all Govt. salaried class. Please read this to the end to understand the concept in detail.

    The income tax payers can broadly be classified into three categories: Salaried Class, General Public and Business Class.

    Salaried class: Salary is the only source of income and taxes are deducted at source without any mercy. All salaried class govt. employees are paying nearly 30% of their salary in the form of TDS. Apart from this the salaried class employees are bound to pay additional taxes of 10 to 15% out of their 70% earnings for their day to day leaving. These are the taxes that are levied on all items right from a drop of water to all consumables, as nothing is tax free.

    General Public: Like all citizens of independent India they are paying 10 to 15% out of their earnings for their day to day leaving.

    Business Class: Like all citizens of independent India they are paying 10 to 15% out of their earnings for their day to day leaving. These classes of people are getting benefit out of this taxation system by collecting taxes not only on products but also on their profit margins.
    Ex. A factory item which is sold by the factory for about Rs. 1000 is taxed by the Govt. to the tune of 10 to 15% to the distributor, which only goes to the Govt. The distributor adds profit (10%) to this item and sells it to the whole seller for Rs.1100 and collects taxes for Rs.1100 instead of Rs.1000. Where as the whole seller again adds his profit of (10-20%) to his cost price and sells it at Rs.1220 and taxes are collected for Rs.1220. This intern is sold by the retailer adding his part of profit (10-20%) to the consumer for Rs.1440. Hence the tax on Rs. 440 goes to the business tycoons and the poor Govt. only gets his share for Rs. 1000 at the rate of 10-15%. Nearly 50% of Govt.’s shares of taxes are being swallowed by business class.

    As everybody is paying the maximum tax of 10-15% to the Govt. compulsorily for the day to day living please tell me why a salaried class of Govt. employee should pay the taxes to the tune of (30% + 10-15%) amounting to 40-45% of their income as taxes.

    In the above contexts which are true the Govt. should abolish Income Tax in total to all Govt. salaried class employees. Tax on income and Tax on all services and purchases leads to double taxation on salaried class.

    Reply
11. 

    VIVEK GOEL said on Monday, August 17, 2009, 16:55

    comments that Vivek Goel wants to be posted to Finance Ministry Site

    I am a salaried tax payer of India and want to post some comments on the new Direct Tax code Draft. Hope you will give some considerations on these points. Although I really appreciate your team efforts to start a mammoth task as big as Simplification of Direct Taxes , Still I find some points to mention which needs some consideration,

    1. Sir, The Tax Exemption Limit is too low and conservative. As you have increased the tax slab of 10% upto Rs. 10 Lacs, , The tax exemption limit of Rs 1.6 Lacs is too low and that too after adding all type of allowances. Please review this limit and increase it to at least 3 lacs to simplify tax procedure to those salaried persons which are having total income within 3 lacs, so that they don’t have to fill income tax returns etc for such low income.

    2 Sir, Your government and previous governments have benefited lacs of people who had no home and wanted to have roof on their head by giving them rebate on interest on borrowed capital upto a limit of 1.5 lacs and on principle repayment upto 1 lac under 80 (C). But in the new tax code these both rebates are withdrawn. Please draw a timeline between the new and old home loan borrowers if you do not want to continue to give this rebate. Please allow rebate of complete Home loan EMI in new section 66 (inclusive of interest and principle component for simplicity) for those people who have taken loan till a certain date e.g. 31-03-20011. Otherwise all these people will be a big sufferer .

    2. Sir, for long time EET was on the cards of the sitting finance ministers but as it is already mentioned in new tax code in sec-16. (1) Any income which is included in the total income for any financial year shall not be included in the total income for any succeeding financial years. , sir, once we have included an income in total income of that financial year, and we invested it in PPF and when we take withdrawal after 10 years, whole amount is taxed under EET. We request your goodself to kindly limit the EET treatment on the earned interest money only on that investment.

    Please look into the matter
    Regards

    Reply
12. 

    Amal Kr. Samanta said on Monday, August 17, 2009, 23:32

    The proposed new income tax code has widen the gap of tax slab. The person earning net income Rs.1,61,000 and the person earing Rs. 9,99,000 are at the same slab This is injustice to the lower incomegroup. Minimum exemption limit should also be increased upto Rs. 3,00,000/=To give relief to the salaried class, stardard deduction should be re-indtrduced.Deduction on petty income on interest from bank and post office like former IT Section 80L should be reintroduced.

    Reply
13. 

    K.V.S.N. RAVI KUMAR said on Tuesday, August 18, 2009, 11:02

    The new Direct Taxes Code 2009 is not a welcoming step towards development of the nation. It will have a wide impact on the housing sector as well as insurance sector. The interest paid on borrowed funds for purchase of house property since been removed for self occupied property, and valuation of rent @ 6% on cost of acquisition of the house towards rentals definitely discourages for purchase of house/flat. Moreover, the permissible deduction in case of insurance is restricted to Rs 15,000/- per annum may not encourage the business of the insurance sector. The savings clause eventhough stated to have been increased to Rs 3,00,000/-, could not be utilised by the salaried class since the withdrawals from GPF brought to tax. The rate of taxes from Rs. 1.60 lakh to Rs 10 lakh is uniform @ 10%, there is no benefit accrued to the low and medium income groups in the Govt. sector. Taxing of perquisites like LTC, Medical reimbursement and valuation of rent free accommodation etc definitely burdens the employees. Taxing the retirement benefits like gratuity, commutation, leave encashment and further maturity benefits of insurance is not in the right direction. Removal of HRA exemption is also a big jolt to the salaried class. Govt. may reconsider the decisions in implementation of the Code after taking into views of all sections of the people for the welfare of the nation.

    Reply
14. 

    lal chand yadav said on Tuesday, August 18, 2009, 14:03

    Honourable FM ,
    Please see some points below ( in respect of Salaried Person)

    1) Home is a basic need of man in our society. There should be up to 2.5 lakh interest rebate and 1 lakh for principal amount for the single house if a person builds it with the help of loan from financial / banks and resides in as it is the basic need of person/his family. This rebate should be separate from the saving section 80C/section 66 .The principal amount may come in saving limit of 300000/- (section 80C / section 66)
    2) The rebate given for the second house in the same name and it is rented out / self occupied, then the rebate should be only up to 1.5 lakh only and 50 thousand as principle amount.
    3) If owner has more than two, he must not get any exemption for any further construction of residential houses.
    4) The GPF, PPF, CPF, LIC and other instruments which where earlier in 80C should not be taxed when withdrawal is taken place as this is not an income. It is a saving done from the income, for his/her old age requirement. Hence it is wealth created by saving during his service time .Therefore it may be treated as wealth and one time wealth tax may be imposed when withdrawn.
    5) The slabs of income tax to be enhanced based on aicpi index every two year.
    6) The limit of saving and others things also be based on aicpi index.
    7) The LTC and Medical Re-imbursement is not an income. The Government deducts some amount from employees to pay CGHS for providing free medical facility. If the CGHS does’ not have such facility or its machine is malfunctioning then it refers to outside and re-imbursement is claimed. So how can this be treated as income when this has to be borne by CGHS

    Reply
15. 

    jayadevan said on Tuesday, August 18, 2009, 17:01

    1. If the tax payer paid more than his tax liability, He has to wait for a long time for the refund. So there should be provision to minus this refund form his next year tax liability directly, so that a lot of procedural works etc. can be avoided and the tax payer will also get some relief. But if the following year’s tax liability is less than the refund, there should be provision for claming refund in cash/bank credit also. 2. If EET introduced, many common investors will stop their investment in PPF etc. 3. The benefits other than cash to Government employee are transparent and it can be valued for computation of tax. But Multinational companies can give lot of benefits to their employees with out disclosing the clear value. This should be taken into account. 4. Bank deposit is common man’s investment method. Hence at lest some exemption should be given for the bank interest

    Reply
16. 

    sankaran said on Thursday, August 20, 2009, 10:05

    Every time we put comment, but finally Govt implementation is not favour for salary people..

    Reply
17. 

    A. Mohamed Basheer said on Thursday, August 20, 2009, 16:07

    Reducement of tax levy from 20% to 10% for over and above Rs.3 lakhs and up to Rs.10 lakhs and increase of svaing limit from Ra.1 lakh to Rs. 3 lakhs is beneficial only to officers in the salaried category. It is not going to help any way to Gr.B and C staff. Because, Gr.B or Gr. C cannot save more than a lakh per year as his total annual salary would be Rs.3 lakh or Rs.4 lakhs. Another blow on these categroies is tax on withdrawal of GPF on future accumulation, withdrawal of exemption limit of HRA interest, accounting for of perks. Hence, this New Income Tax Code has saddened these categories and hence it is requested the Finance Minister to give real relief to these category by suitable expemtion especially for them.

    Reply
18. 

    Srikant said on Thursday, August 20, 2009, 16:17

    Mr. Finance Minister,

    Please increase threshold exemption limit to Rs 500000. It will mitigate any effect of withdrawl of other exemption as well as simplify tax structure also without putting any additional burden on salaried class. Salaried class seems to be biggest looser with new proposed tax code.

    Reply
19. 

    Prakash Chauhan said on Thursday, August 20, 2009, 16:38

    Dear FM,

    The new taxcode is a welcome step and happy to hear that the FM has dared to change it after such a long time.
    Kindly look into the following before final consideration.

    Basic exemption limit : It is surprising that with the present inflation rate where the price of each and every items especially food is increasing by around 50% to 100%, corresponding the basic exemption limit has hardly increased. The said limit should be enhanced to Rs 3,00,000/-.
    The said limit should be linked to the retail inflation rate. As the inflation on retail items increase so also the said limit will automatically increase thereby a person is not worse off than he was yesterday.

    Income from salary
    1) Standard deduction: As per section 16(i), std deduction prevailed earlier. Later on it was removed.
    Salary class is the only class which pays full tax. Since the burden is cast on the employer to deduct salary, there is no way of escape. Just like for business income there are deductions available so also for the salaried class the said deduction was for similar purpose and also it was fixed unlike business income where the income can be reduced to a loss. A salaried person can never show a loss.
    Kindly reintroduce the same atleast to Rs 1 lac.
    2) Transport allowance : At present it is 800/- p.m. At this inflation rate it should be minimum Rs 2500/- p.m.
    3) Medical allowance: Present limit is Rs. 15000/- p.a. It should be allowed and the limit should be enhanced to Rs. 30000/- p.a.

    Interest on housing loan
    Present limit is Rs 150,000/- It is not there in the new tax code. Kindly reintroduce the same and also the principal repayment U/s 80C be there. It will badly affect people who are repaying housing loan.

    Agricultural income: It should also be taxed. They should also contribute to the nation.

    EET: Please don’t tax the amount received on maturity as the amount which will be received will help people for their retirement age and to tax the lumpsum amount as income of the previous year will be highly unjust. Though the practice may be followed by developed countries, but in India there are other issues where we are still not in line with developed countries like social security to old age, food to people who don’t have the same and so on. There is very low amount of pollution there which is not in our case. They are highly professional. Law and order are far more stricter there. In our country only 5% of the population are paying income tax. Agricultural income is tax free .

    Perks enjoyed by MP’s: They should be taxed just like any other citizens who are paying full tax.

    Reply
20. 

    Hitesh Patel said on Thursday, August 20, 2009, 16:41

    1)as my suggestions EET not apply on PF,EPF,LIC,gratuity & PPF (tax-free maturity benefits) PF,EPF & LIC is for retirement shaving
    2)government must see in gratuity act 1972 –> for government employee gratuity totally free , for other then government only 3.5 laces free which is wrong why government make differtn between government employee & privet sector employee ( if government not do this then government gives government job to each person)

    3) TAX on agriculture Income (base on incom)

    4) Zero tax for upto 3-4 laces , 10% tax upto 15 laces, Upto 30 Laces 20%, upto 40 laces 30% Tax and above 40 laces 35% tax

    5) Housing loan interest benefit required.

    6) Need unemployment scheme – government taking tax – if government has right to take tax then his responsibility to pay for unemployment

    Reply
21. 

    ken said on Thursday, August 20, 2009, 18:03

    eet nothing but postponement of tax

    Reply
22. 

    b.s.bhumannavar said on Friday, August 21, 2009, 9:33

    In my view each and every person earning income should pay tax. Let the tax be less for lesser income and more for higher income. I feel gross income minus savings is the taxable income. The income tax rate can be 1% for every one lakh income. It is very very simple. For a taxable income of one lakh, the income tax is 1% and for taxable income of Rs. 2 lakh, the income tax is 2% ………and for taxable income of 5 lakh, the income tax is 5%…….. and for taxable income of 10 lakh, the income tax can be 10%……15% for 15 lakh itaxable ncome, 20% for 20 lakh tasable income, ……….and for taxable income of 30 lakh, the income tax can be 30% and above 30 lakh taxable income, the income tax rate can be only 30%. This solves all the problems and the purpose of lower income-lower tax and higher income-higher tax is achieved

    Reply
23. 

    vinod said on Friday, August 21, 2009, 12:13

    The new Income Tax Code is against the lower chunck of employees. All the retirment benefits must be exempted. Allowances like LTC etc. may not also be reckoned as part of salary as we pay back it to trasportors viz. railway, airlines and transport corporation as the case may be

    Reply
24. 

    Bobby said on Friday, August 21, 2009, 12:15

    Respected Hon’ble Finance Minister,

    20 per cent and 30 per cent Tax on Income are not advisable, as higher income groups may consider it painful to pay high taxes and there are chances that they may opt to evade taxes in one way or the other.

    Well, Income Tax may be considered to be charged at a single flat rate of 10 per cent on total Gross Income as TDS just like a Service Tax only, the minimum.

    However, for lower middle class/poor people, this 10 per cent Income Tax on total gross income may be borne by Employer and Employee in the following ratio:

    Gross Income Employer : Employee

    upto 50,000 Borne by Employer-Full
    50,000 to 1 lac 3 : 1
    lac to 1.5 lacs 2 : 2
    1.5 lacs to 2 lacs 1 : 3
    More than 2 lacs Borne by Employee-Full

    The implementation of the above System of bearing the tax burden both by the Employer and Employees may be considered as an effective tool for reducing the tax liability on employees (individuals) and reduces the chances of evasion of Tax by Employers, as sometimes, employers show inflated/bogus/more salaries in their accounts to reflect less income or profits.

    Moreover, Government may consider reduced/lower single slab Income Tax rates i.e. 2 per cent, 4 per cent, 6 per cent and 8 per cent on Total Gross Income upto Rs.50,000, Rs.1,00,000, Rs.1,50,000, Rs.2,00,000 respectively, in the form of TDS for lower income groups.

    However, people below the poverty line may be given exemption of this 10 per cent Tax.

    Incomes of All small firms, different businessmen, wholesalers, retailers, Actors, Musicians, etc. may be considered to be charged at a single flat rate of 10 per cent either it is 25 lacs or 50 lacs or more.

    Spiritual organizations, Charitable Institutions, Clubs, Welfare Organizations etc. may be considered to be liable to Pay Tax at a single flat rate of 10 per cent on all incomes/donations/receipts.

    Incomes from 1. Interest 2. Dividends 3. Short / Long Capital Gain 4. House Property may be considered to be charged at a single flat rate of 10 per cent as TDS just like a Service Tax. However, people below the poverty line may be given exemption of this 10 per cent Tax.

    Initially, Income Tax of single flat rate of 10 per cent on total Gross Income as TDS may be considered to be applicable for employees of Government, Public Sector Undertakings and Public Limited Companies. Its scope may be further extended to Private Limited Companies, then small firms, then different businessmen, then wholesalers, then retailers and so on.

    Wealth Tax may be considered to be abolished.

    STT may be considered to be allowed to be continued and may not be considered to abolish the same.

    When all the incomes are charged at a single flat rate of 10 per cent, then ultimately, the revenue from Income Tax shall definitely be manifold. Then there are chances of less Tax evasion, less burden of filing returns.

    All investments and purchases should be free from any compulsion in liberalized economy and as such, all Tax Saving Investment Schemes may be considered to be abolished. People should decide its own priorities for purchases and investments with 90 per cent amount available at its disposal – after paying 10 per cent Income Tax. Then People shall have the option either to invest the savings or purchase some more items/things out of the savings. In both the cases, the Government will earn revenue either in the form of Tax on interests/Dividends or Tax on Excise/Sales Tax.

    The implementation of this single flat rate of 10 per cent Tax on Total Gross Income may be considered to be an effective tool for overcoming recession and will definitively increase production, employment opportunities and investments, in addition to reduction of black-money, un-accounted income and tax evasion.

    Request: Please send these comments to the Finance Ministry site.
    Thanks.
    With regards
    Bobby

    Reply
25. 

    B.S.Sodhi said on Saturday, August 22, 2009, 20:49

    Security Transaction Tax:Best way is to deduct tax at source. STT was doing that Once STT is deducted, investor need not keep any record of his transaction of shares for LTCG.No body can evade tax.If STT is replaced by CGT.most of small investors will find combersome to keep track of transaction and will be tempted to evade CGT on share transaction and govt. will lose all this tax. Therefore STT should continue

    Reply
26. 

    B.S.Sodhi said on Saturday, August 22, 2009, 20:51

    The tax slabs should be linked with inflation

    Reply
27. 

    ssckumar said on Sunday, August 23, 2009, 10:54

    1.The proposed direc taxes code is an attempt to discourage employees to invest in PF,hence it is not welfare measure.EMPLOYEE INVEST IN PF TO SAVE FOR FUTURE NEEDS WITH OUT ANY PAIN AS SUBSCRIPTION IS THROUGH SALARY DEDUCTION ,IRRESPECTIVE OF IT QUALIFIES FOR TAX EXEMPTION OR NOT.PROPBABLY BY THIS MEASURE GOVT.FORCING EMPLOYEE TO INVEST IN OTHER INSTRUMENTS OF PRIVATE AND PUBLIC BANKS BUT NOT IN GOVT.INSTITUTION WHICH IS AN ATTEMPT TO DESTABILISE GOVT.INSTITUTION..2.taxation of medical reumbersement ,LTA etc,are also not welfare measures because these are aimed at getting treatment in case of untoward incident and recreation etc..so that employee efficiency increases.3.In a nut shell Finance ministry. probably wants to raise theris revenues indirectly by showing carrot (increasing slabs) which suold be opposed unanomously.4.The representatives of employees should be consulted to suggestw the ways to increase revenues.More focus should be on how to ensure all the business people pay their dues to Govt. and how to get revenues from those whose properties are disproportionate to their own sourc of income rather than how to sqeeze an employee whose earnings are transparent.THE PROPOSED CODE IS ANTI EMPLOYEE &SHOULD BE OPPOSED UNANIMOUSLY.

    Reply
28. 

    B V RAO said on Sunday, August 23, 2009, 11:51

    The conclusion that savings instruments such as ELSS will not be allowed as deductions seems to be erronious in view of the section 66 of New Income Tax code. It allows “any sum paid to, or deposited in,any account maintained with any permitted savings intermediary” as deductions. ELSS and other saving instruments can be grouped under permitted savings intermediaries from time to time. We have to wait without jumping up to conclusions on the nagative bias of the new code until govt will come out with the clear creteria for permitted savings intetmediary.

    Reply
29. 

    srunivasan said on Sunday, August 23, 2009, 17:08

    It is not good move by the Finance Minister targeting the salaried employees. Sources of instruments cutting downby way of getting exemption through 80C now it is called sec,66 is no more positive sign. To my mind if this Finance Minister can implement the new I.T.Code then the whole congress party and other alliances of this Govt. removed permanently from this political field. Madam Please abstrain this foolish move by the Finance Minister.

    Reply
30. 

    S.D Sharma said on Sunday, August 23, 2009, 21:31

    Pension scheme should be linked to tax paid by individuals. when a person retires from service tax paid by should be repaid to him in term of medical facility etc.To encourage more tax collection, facilities after retirement may be incease by state

    Reply
31. 

    uk banerjee said on Sunday, August 23, 2009, 23:12

    Hon’ble Finance Minister, Govt. of India Sir,

    The PSU retired executives have all along been considered at par with the Govt. executives in the matter of exemption limit of gratuity which has been enhanced for both categories to 10 lac. This time the notification of exemption in case PSUs are yet to be issued and employers are, therefore, contemplating the payment of enhanced gratuity after deduction of income tax.Kindly see that the disparity on the issue is set to rest at the earliest.
    Regards

    Reply
32. 

    virat said on Monday, August 24, 2009, 1:24

    whatever u do, whatever incomes like ltc, leave encashment u bring under the tax net. or remove the investment options under sec 80c., then just increase the tax exemption limit to 5 lakhs n not 1.6 lakhs. no harm with tax code.

    else the code is very harmful to middle class.

    Reply
33. 

    Malleswara Rao SN said on Tuesday, August 25, 2009, 12:06

    Sir,

    The existing many facilities under section 80cc were removed and it becomes the basic income tax limit Rs.1.6 laks was appeares to be reduced further which is very diappointment for all low income personnel. Request correct the problem & increase the basic income tax limit Rs.5.0 laks .

    Reply
34. 

    kaj said on Wednesday, August 26, 2009, 12:09

    if the govt want its people to live in a better way, is to reduce their tax liability. With the new tax code, only higher income group are getting benefit as their tax liability reduces a lot.
    There is no benefit in introducing section 66 (limit upto 3 lakhs)….. why the top politicians are not thinking that the common can not save this much money for reducing this tax liability. Lot of families have taken the housing loan with the intention of tax benefit on the interest, at the the GOVT SHOULD PROVIDE SOME TAX BENEFIT ON THE INTEREST & PRINCIPAL AMOUNT REPAID ON HOUSING LOAN (IF 1.5 LAKH IS NOT POSSIBLE, A LOWER AMOUNT CAN BE FIXED). Hope the govt will think for the common man

    Reply
35. 

    Prakash said on Saturday, August 29, 2009, 10:15

    1) First tax all allowances and perks enjoyed by all MPs, judges and political leaders which are presently tax free.
    2) Tax agricultural income which is presently exempt.
    3) Re introduce std deduction for salaried class at Rs 200,000/- 4) Increase basic exemption limit to Rs 5,00,000/- and link the same to the retail inflation rate.

    Reply
36. 

    DILIP KUMAR DEWANGAN said on Saturday, August 29, 2009, 11:29

    hon, FM
    KINDLY .DO NOT ACCEPT NEW TAX CODE, BUT REVISE OLD TAX RULE AS ADD SOME EXEMPTIONS IN SAVINGS. INCREASE TAX LIMIT, ALSO INCREASE H B A INTEREST LIMIT AS LIVING STANDARD IS INCREASING IN INDIA. KINDLY LEAVE GENERAL PEOPLE AS SALARY EMPLOYED FROM TAX BOMBARDMENT

    Reply
37. 

    Malleswara Rao SN said on Thursday, September 3, 2009, 17:27

    Sir,

    If the imcome tax slabs were linked with the rate of Inflation, there is no need to increase the tax slabs frequently in future.

    Reply
38. 

    Thomas Varughese said on Monday, September 7, 2009, 15:50

    Dated 7/9/2009.

    Sir,

    For physically challenged persons under section 80 U of the Income Tax Act provides
    a relief of Rs.50000/- and Rs.75000/- respectively from taxable income.
    As this is a great relief to the physically challenged persons this is to be continued in the new IT code also apart from the general exemption limit of Rs.160000/- and physically challenged persons to get a exemption limit of Rs.210000/- and Rs.235000/- respectively

    Regards.

    Thomas Varughese,
    Pallathrayil House,
    Kozhencherry.
    Pin 689 641

    Reply
39. 

    Nitin M said on Tuesday, September 8, 2009, 17:29

    Dear Sir, Please do not always target middle class, I feel this move is making the weaker more weaker. It is good to increase the current slabs without disutrubing the current structure. It should be noted that the Middle class is one of the powerful source of income. If India has to imrpove on economy, it should be through simple tax strucure and not the complex. (User friendly). If the govt want the source if income to live in a better way, it is must to reduce their tax liability. With the new tax code, only higher income group are getting benefit as their tax liability reduces a lot. This is complete discouraging move, even thinking of such thing itself is going to pull down the Rulling party down, leave apart the implementation. Why not FM thinking of motivationals tax code coducts for Business men, politician, film stars, cricketiers, leaders who are de faluters in tax recovery for the years together. Even if this is achieved, am sure India will be the richest country in the world and enjoy the Pride and Heritage for ton of years to come ahead.

    Reply
40. 

    vivekanandhan S said on Wednesday, September 23, 2009, 14:31

    In the new DTC there is a possibility of double taxation.

    The GPF contribution amount for a month is already shown in the Income side , say, Rs.5,000/- in 2011-12. Even though we can show it as a savings for deduction under sec 80C, there may be some people who may not need to show this GPF subscription amount as savings under 80C and they may have other options for deduction. If we are to withdraw this Rs.5,000/- in 2012, July , we will have to include this amount in the income for the year 2012-13 (i.e. we will be required to pay tax on this Rs.5,000/- again). Thus the same amount is to be shown twice as income at different financial years. The correct method to tax the amount will be to tax the interest earned on this subscription……. Any body agree with me. If not please enlighten to me regarding this EET procedure of taxing the whole amount instead of taxing the interest amount as is done in Banks.

    Reply
41. 

    ssms said on Saturday, October 10, 2009, 13:40

    Dear Finance Minister
    The taxes levied on Govt. Salaried Class are exorbitant. The Govt. should think seriously about abolishing taxes on all allowances. A Govt. employee gets these allowances based on inflation rate. This inflation rate is not the current rate but it is calculated with respect six month back dated.
    Taxes on salary, Taxes on allowances, before allowances are given which is charged as per inflation rate, before getting allowances and Taxes on allowances after announcement.
    Ha what a chain of taxing system.

    Reply
42. 

    Omesh Sinha said on Thursday, November 12, 2009, 16:01

    Dear FM, Is it not irrational to tax the GPF withdrawls and any other savings the salaried class keep for their future. Any savings/maturity amount should not be taxed. Why the perks earned by politicians are not taxed ? Why the income generated from Agriculture are not taxed. Is it not a income?. Its a request atleast not to tax the HRA, LTC or leave encashment benefit. Kindly re-introduce the Statndard Deduction for salaried class with enhanced limit to Rs 1,000,00 from Rs 30,000/-. It seems its a plan to take back the hiked salary using this plan and rather more. The plan may accordingly be revised to benefit the country as well as its responsible citizens.

    Regards.

    Reply
43. 

    sethu said on Tuesday, December 1, 2009, 16:43

    Dear Sirs,
    My question is how can you tax your hard earned contribution in the PF at the end of your service?

    If that is the case, why should anyone contribute to GPF only to be taxed in the end? What is the criteria? What would happen to all those who have contributed even small or bigger amounts, for example from LDC to Officers?

    Does it not amount to cheating?

    Reply
44. 

    Lekshmi.C said on Sunday, December 13, 2009, 15:46

    Dear sir,
    arrears of payment received this year of previous financial years could be reckoned for calculating tax for the assessment year 2010-2011?

    Reply

    

    admin Reply:
    December 17th, 2009 at 9:38 am

    @Lekshmi
    Pl check this GConnect article
    http://gconnect.in/gc/service/personal-income-tax/online-tool-to-calculate-rebate-under-section-891.html

    Reply

    

    admin Reply:
    December 28th, 2009 at 6:09 pm

    @Lekshmi.C
    yes. It has to be taken into account. However, you can claim relief under section 89(1) for the same.

    Reply
45. 

    Jagannathan said on Sunday, May 9, 2010, 16:43

    The Govt. should abolish Income Tax in total to all Govt. salaried class employees. Tax on income and Tax on all services and purchases leads to double taxation on salaried class. It is irrational to tax the GPF withdrawls and any other savings the salaried class keep for their future. Any savings/maturity amount should not be taxed. Why the perks earned by politicians are not taxed ? Why the income generated from Agriculture are not taxed. Is it not a income?. Please do not tax the HRA, LTC or leave encashment benefit. Kindly re-introduce the Statndard Deduction for salaried class with enhanced limit to Rs 1,000,00 from Rs 30,000/-. It seems its a plan to take back the hiked salary using this plan and rather more. The plan may accordingly be revised to benefit the country as well as its responsible citizens. Instead of taxing middle class tax fat cat politicians and business men who loot the common man and be come super rich.

    Reply
46. 

    vsmurthy said on Sunday, May 30, 2010, 14:24

    Dear Sir,

    You can play with tax rates and slabs, and ETT, EET, EEE, TTT anything. But as a common man and salaried tax payer, I get confused to add, subtract, delete so many items and feel troubled. I know only one thing. Save for getting tax exemption current year and forget. To remember various channels of investments for gains or loss and tax, is really difficult for me. It takes away my sincere concentration from my actual field of work and keeps distracting every year, and forces me to keep a track of all unnecessary financial jugglaries. Take or tax at one point of time ( current year ) and forget. So many alterations in between will be forcing us to go to CA or Tax advisers or devote time to acquire knowledge on these non core priorities. So kindly simplify things. Take away as much tax at one time and make me feel free to enjoy the rest. Or go for expenditure taxation. Who will oppose that?????. Why cash transactions beyond INR10,000/- could not be prohibited. The lekages are lying there. Make tax rules simple for 90% of the simple & lay people. With Thanks.

    Reply
47. 

    Rajesh L said on Tuesday, June 1, 2010, 20:20

    Is it a Crime to be a Salaried Individual in India?????
    Do you have any mechanism to track income of Businessmen or Professional as available for salaried via TDS ?????. If not then why salaried class people always suffer a lot so far taxation is concerned…Give maximum benefits to salaried people who do not have any escape from tax payment due to TDS…….Think TWICE…THRICE…before removing benefits for salaried….Don’t think like Britishers way…Be an Indian and think for Indians….Jai Hind

    Reply