Benefits to Middle Class Tax Payers in the Budget 2015-16

Benefits to Middle Class Tax Payers in the Budget 2015-16

No Change In Rate Of Personal Income Tax

Rationalization And Removal Of Various Tax Exemption

Exemption To Individual Tax Payers To Continue To Facilitate Savings

Atal Pension Yojana For Defined Pension, Government To Contribute 50% Of The Premium

Benefits to Middle Class Tax Payers in the Budget 2015-16

Payments to the Beneficiaries Including Interest Payment on Deposit in Sukanya Samriddhi Scheme to be Fully Exempt

The Union Minister of Finance Shri Arun Jaitley in his Budget Speech in Lok Sabha today proposed rationalization of various tax exemptions and incentives to reduce tax disputes and improve tax administration. He said, with a view to encourage savings and to promote health care among individual tax payers, it is proposed to increase the limit of reduction of health insurance premium from Rs 15,000 to Rs 25,000 and for senior citizen this limit is increase from Rs 20,000 to Rs 30,000.

For senior citizen above the age of 80 years, not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure. Deduction limit of Rs 60,000 on expenditure on account of specified diseases is enhanced to Rs 80,000 in the case of senior citizens.

Additional deduction of Rs 25,000 is allowed for differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000. It is also proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.

The Finance Minister Shri Jaitley also proposed to provide that investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C of the income-tax and any payment from the scheme shall not be liable to tax.

Limit on deduction on account of contribution to a pension fund and the new pension scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.

Additional deduction of Rs 50,000 will be allowed for contribution to the new pension scheme u/s 80 CCD increasing from Rs 1 lakh to Rs 1.5 lakh.

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NMC urges FM to raise IT exemption limit to 5Lakh and for Merger of DA

JAMMU: The National Mazdoor Conference today asked Union Finance Minister Arun Jaitley to raise the income tax exemption limit to Rs 5 lakh.

“We urged Union Finance Minister to raise the Income Tax exemption limit to Rs five lakh,” National Mazdoor Conference (NMC) President Subash Shastri said while addressing a series of rallies at Kanjali and Bomyal in Nagrota Block here today.

Shastri also appealed he Finance Minister to announce non inclusion of amount of DA to calculating income tax as the DA instalments are released by the government from time to time to utilise the impact of price rise and inflation.

Shastri emphasised the need for immediate merger of 50 per cent DA into basic pay and pension as per the recommendations of the Fourth Pay Commission.

He added that all these burning issues impacting both the Central and State Governments Employees and pensioners should be addressed by the Union Finance Minister while presenting the budget for 2015-16 in the coming Budget Session of Parliament beginning on 23rd of this month.

He also demanded immediate release two DA instalment of 17 per cent in favour of State Government Employees and pensioners, pointing out that while Central Government is about to release another instalment 6 per cent DA in favour of its employees and pensioners from Jammu 2015 but it is unfortunate that the salaried class in the state has not got the benefit previous two DA instalments.

He also demanded early regularisation of the 62,000 daily rated workers beside release of their wages without any further delay.

Source: economictimes.indiatimes.com

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Implementation of the Cadre Restructuring of Income Tax Department

C.R.I.-13/1(Core Comm): Corr.No.1

GOVERNMENT OF INDIA

CENTRAL BOARD OF DIRECT TAXES

DIRECTORATE OF INCOME TAX

(HUMAN RESOURCE DEVELOPMENT)

ICADR Building, Plot No. 6, Vasant Kunj Institutional Area Phase-II,

New Delhi — 110070

F. No. HRD/CM/102/3/2009-10/(Pt)/963

Dated 19th June, 2013

Office Order

Sub:- Implementation of the Cadre Restructuring of Income Tax Department : Constitution of the Core Committee

1. Restructuring proposal of the Income-tax Department has been approved by Government on 23.05.2013 for the creation of a total 20,751 additional posts, and various measures to increase the effectiveness of the Department.

2. The steps required to be taken to implement the Cadre Restructuring have been considered by the Board and it has been decided that its roll-out needs to be carried out in a planned and time-bound manner. It has therefore been decided to constitute a Core Committee as detailed in Para 6 to facilitate the implementation of the Cadre Restructuring.

3. The Board has also decided to Constitute various other Sub-committees, consisting of representatives from CCAs, field formations and other stakeholders that would undertake the task of analyzing the issues and data, preparing roadmaps as well as assisting in the implementation of the various components of the Cadre Restructuring. The tasks for the Sub-committees would include ensuring modalities for earliest implementation for items such as promotion/recruitment at various levels, conducting DPCs/up-gradations, considering operational/functional/jurisdiction issues for allocation of posts in different regions, restructuring/establishment of Directorates, required amendments in RRs and the creation of necessary infrastructure required for the posts.

4. The Core Committee would be responsible for the overall implementation of the Department’s restructuring. It would process the constitution/approval of the Sub-committees, co-ordinate efforts of all the Sub-committees, keep the CBDT abreast of all the developments; seek necessary clearances/approvals, wherever required, and assist the Sub-committees in their functions including seeking intervention wherever required to ensure that the work of the Sub-committees remains on schedule.

5. It would also be directly responsible for facilitating/ ensuring the DPC for grant of Apex grade to CCsIT, submission of analyses and reports to the CBDT; making recommendations on policy issues with regard to promotions/upgradations and inductions at various levels in consultation with the Sub-committees as may be required.

6. The Core Committee as detailed below, is accordingly constituted with the approval of Competent Authority:-

Sl.No Name          Designation  

1 Sh. T. Jena                DGIT   Chairman

2 Smt. Archana Ranj an CCIT     Member

3 Sh. Krishna Saini          CIT             Member

4 Sh. Binay K Jha           DIT Member

5 Smt. Pragya Saxena           J. S. Member

6 Sh. Amitabh Kumar           DIT         Member

7 Sh. Manoj Joshi          DIT Member

8 Sh. R R Singh                   DIT Member

9 Sh. Debjyoti Das           DIT Member

10 Smt. Swati Joshi       Addl. DIT Member Secretary

7. The Chairman of the Committee may

i.Co-opt more Members, if required, for specialist inputs or to make the consultations broad based and inclusive.

ii.Constitute further sub-committees, if required, for examining various issues, for providing material that may assist the Core Committee in its work

8. The Headquarters of the Committee shall be at New Delhi in the Directorate of HRD, which shall function as its Secretariat and shall provide:

i. All necessary coordination and secretarial support, and assistance to the Core Committee, and Sub-committees for their functioning

ii. Arrange for, collect, obtain and provide feedback, data, information analysis and any other specialist or specific inputs that may be material to and necessary for carrying out its functions.

9. The Committee shall carry out weekly review of the progress of its work and shall periodically brief the CBDT on the status thereof.

sd/-

( Sanjay Gosain)

Deputy Director of Income tax (HRD)

Source: http://irsofficersonline.gov.in

[http://irsofficersonline.gov.in/Documents/OfficalCommunique/1620201384554.pdf]

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Income Tax Department Starts Two More Taxpayer Friendly Initiatives : ‘Register for Home Visit’ and ‘Online Tax Help’

Income Tax Department Starts Two More Taxpayer Friendly Initiatives : ‘Register for Home Visit’ and ‘Online Tax Help’

In order to make the Income Tax Return filing experience even more convenient, the Income Tax Department has started two more taxpayer friendly initiatives ‘Register for Home Visit’ and ‘Online Tax Help’. To avail these facilities, a taxpayer must visit the website www.trpscheme.com and take help of trained professionals either online or at their homes. The taxpayer can choose between ‘online help’ or ‘home visit’.

On choosing the option of online tax help, the taxpayer can fill in his tax related query along with his contact details. The online query will be resolved by tax experts through Email or Phone within 24 hours.

The taxpayers who choose to register for home visit, will be asked to indicate in short the help required by them and a convenient date and time when the Tax Return Preparer (TRP) can visit them for assistance. The help desk will forward the query of the taxpayer to the nearest available TRP and fix the appointment telephonically. The TRP will then visit the taxpayer and render assistance. The facility is aimed to facilitate taxpayers in filing their return and thereby reducing their cost of compliance. The TRPs are allowed to collect fee from the taxpayers as per the TRP notification subject to a maximum of Rs. 250 per return preparation. The facility for home visit by TRPs has been presently made available in few cities such as Bangalore, Chennai, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Mumbai, New Delhi, and Patna. The facility would be extended to more cities during the next phase.

The TRP scheme call center 1800-10-23738 may be called for further information regarding these initiatives.

The Tax Return Preparer Scheme is an initiative of the Income Tax Department to help small and marginal tax payers in filing of their Income Tax Returns. This Scheme is applicable to individual and HUF tax payers who can take assistance of TRPs in preparation and filing of their Income Tax Returns. The TRPs are self employed graduates who are trained by the Income Tax Department for filing of Income Tax Returns as well as quarterly TDS statements. The TRPs are authorized to collect nominal charges of Rs. 250 or less from the tax payers for preparing their Income Tax Returns. The Department also pays incentive to the TRPs for preparing of returns of tax payers which is a percentage of the total tax paid as per the returns prepared by the TRP subject to a maximum of Rs. 1000/-.

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IT Offices Throughout India to Remain Open Tomorrow to Facilitate Filing of Returns

IT Offices Throughout India to Remain Open Tomorrow to Facilitate Filing of Returns 

As the Financial Year 2011-12 closes on 31st March, 2012 falling on Saturday, the Central Board of Direct Taxes (CBDT), Ministry of Finance has issued an order directing all the Income Tax Offices throughout India to remain open on this day. The receipts counters will also work during normal office hours. The direction has been issued for administrative convenience by the CBDT in exercise of powers conferred under section 119 of the Income Tax Act, 1961, 

CBDT has also directed that special arrangements may also be made by way of opening additional receipt counters, wherever required on 30th and 31st March 2012 to facilitate the taxpayers in filing their returns of income conveniently.

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Upper limit of Income Tax Exemption towards Interest on Housing Loan likely to be raised to Rs.3 lakh

An individual who is liable to pay income tax is presently granted a deduction of up to Rs. 1.5 lakh from the salary income for the interest paid on Housing Loan taken for self occupied housing property in an assessment year.

As per media reports on expected changes in Income tax regulations in the ensuing budget 2012, the present limit of Rs. 1.5 lakh for housing loan interest may be raised to Rs. 3 lakhs.

The Economic Times reports as follows

In a bid to boost housing sector credit, the government is contemplating to enhance income tax exemption for up to Rs 3 lakh paid as interest on housing loans in a year, from the existing limit of Rs 1.5 lakh.

The government is considering to raise the tax deduction limit for housing loan in the coming Budget, sources said The Budget is scheduled to be tabled on March 16. At present, a deduction of up to Rs 1.5 lakh is available from taxable income towards interest on loan taken for house. Besides, borrowers can enjoy exemption on payment of principal amount. However, it is part of exemption to savings capped at Rs 1 lakh per annum.

With the property prices and interest rates rising with each passing year, there is need to revise the limit, sources said.

In order to arrest the declining growth rate, the industry associations have demanded raising the tax limit ceiling for the housing loan.

According to Ficci Secretary General Rajiv Kumar the exemption should be harmonised with the rising interest rates and increased to at least Rs 2.5 lakh.

“We recommended that the existing tax deduction limit on income tax of an individual should be increased from the current level of Rs 2.5 lakh to at least Rs 5 lakh,” CII Director General Chandrajit Banerjee.

Of this, Rs 3 lakh should be towards interest payment to offset the impact of high interest rates, he said, adding the remaining Rs 2 lakh should be exclusively towards principal loan repayment as the present limit of Rs 1 lakh is already overcrowded with several other items.

Echoing views, Assocham and PHD chamber said that exemption limit need to be raised both for interest and principal.

As per the Direct Taxes Code, which would replace the decades old Income Tax Act, there is income tax exemption for up to Rs 1.5 lakh paid as interest on housing loans in a year.

Source: The Economic Times

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Exempt income up to Rs 3 lakh from I-T: Parliamentary panel

 Exempt income up to Rs 3 lakh from I-T: Parliamentary panel

The skewed personal income tax collection pattern of the government has prompted the Parliamentary Standing Committee on Finance to suggest moderately higher taxes for those who earn more and greater relief for small taxpayers. In fact, it has suggested that the tax should kick in only at annual income levels of Rs 3 lakh and more.

According to latest data collected by the Income Tax department, of the 300 million taxpayers in the country, just 1,85,000 individuals earn over Rs 20 lakh a year. But this small group pays Rs 53,170 crore in personal income tax. The broad categorisation of tax payers shows that individuals in Rs 0-10 lakh comprise almost 92 per cent of the total taxpayer base, but they contribute only Rs 21,094 crore, less than 40 per cent of the amount collected as taxes from the small group earning over Rs 20 lakh a year. The tax payers within the income slab of Rs 10-20 lakh per annum — 3.35 lakh tax payers — paid Rs 10,185 crore to the government, the data showed.

The stark contradiction has prompted the standing committee to suggest that the government should restructure the current tax regime, making it more progressive so that individual tax payers and corporate can be shielded from regressive effects of the present structure. Accordingly, the committee suggests that the tax slab attracting nil rate should be raised from Rs 2 lakh proposed in the Direct Tax Code to Rs 3 lakh so that the department can channelise its resources in minimising the compliance and transaction cost.

“The character of the tax regime should change and it should be made more progressive. This would entail greater relief for small tax payers—both individuals and corporate — and moderately higher rates for tax payers in the higher bracket,” the Parliamentary panel has said.

The panel, currently vetting the proposed DTC has questioned the rationale of the existing tax slabs pointing out that most taxpayers — 2.02 crore of the total 3 crore — fall under the income slab of Rs 0-2 lakh. The number of tax payers further falls to 56.73 lakh in the income slab of Rs 2-4 lakh, making it around 72 per cent in the lowest income bracket for tax purposes. The panel noted that the department should not “diffuse their energies and spread their resources thin over handling such a large number of tax payers with low income potential”.

Another anomaly, the committee has said, lies in the corporate tax structure.

The data shows that the tax collected in the income slab of Rs 0-100 crore is Rs 44,016 crore while that in the income slab of Rs 100-500 crore is Rs 23,421 crore, and Rs 54,558 crore in the above Rs 500 crore slab.

Greater relief

* Let those who earn more pay moderately higher taxes, Parliamentary panel tells government on DTC

* Suggests restructuring the current tax regime so that tax payers can be shielded from regressive effects of the present structure

* Committee says that tax slab attracting nil rate should be raised from Rs 2 lakh proposed in the Direct Tax Code to Rs 3 lakh

Source: Indian Express

[http://m.indianexpress.com/news/exempt-income-up-to-rs-3-lakh-from-it-parliamentary-panel/911271/]

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Income Tax Department Directed to Launch Special Drive for Verifying High Value Transactions

The Central Board of Direct Taxes has directed the Income Tax department to launch a special drive, from 20th January to 20th March 2012, for verifying high value transactions (investments / deposits / expenditure) from persons who are not assessed to income tax or who have not furnished their PAN while entering into such transactions. In an instruction issued today, the CBDT issued proforma for query letters and responses to be issued to the high value investors / depositors / spenders.

Addressees will be required to furnish their PAN if they already have one, or apply immediately for PAN to NSDL / UTIISL if they do not have one. They will also be required to explain the source of the high value investments / deposits / expenditure, and whether these are properly accounted for / explained in the income tax return filed by them. Persons who have not properly accounted for the high value transactions, are required to pay due taxes and file the income tax return within this financial year, i.e. by 31st March, 2012. For furnishing the information called for, visit to the tax office is not necessary. Information can be sent by speed / registered post.

In some cases, the tax officials may also visit the premises of the high value investors / depositors / spenders. In such cases, the taxpayer should verify the identity of the tax official before furnishing information in the prescribed proforma. In case of any grievance or complaint, taxpayer may contact the assessing officer or the additional / joint commissioner or the commissioner concerned. The visiting tax official is required to furnish the telephone numbers of his supervisory officers.

There are penal consequences of not obtaining PAN or reporting it. For not paying proper taxes, there can be penalty up to 300% of the unpaid tax, and also prosecution in some cases

PIB

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No Income Tax return for salary Taxpayers with income up to Rs.5 lakh -Ministry of Finance

No Income Tax return for salary Taxpayers with income up to Rs.5 lakh -Ministry of Finance

Salaried Taxpayers with total Income up to Rs.5 lakh Exempted from filing Income Tax Return for Assessment Year 2011-12

The Central Board of Direct Taxes has notified the scheme exempting salaried taxpayers with total income up to Rs.5 lakh from filing income tax return for assessment year 2011-12, which will be due on July 31, 2011.

Individuals having total income up to Rs.5,00,000 for FY 2010-11, after allowable deductions, consisting of salary from a single employer and interest income from deposits in a saving bank account up to Rs.10,000 are not required to file their income tax return. Such individuals must report their Permanent Account Number (PAN) and the entire income from bank interest to their employer, pay the entire tax by way of deduction of tax at source, and obtain a certificate of tax deduction in Form No.16.

Persons receiving salary from more than one employer, having income from sources other than salary and interest income from a savings bank account, or having refund claims shall not be covered under the scheme.

The scheme shall also not be applicable in cases wherein notices are issued for filing the income tax return under section 142(1) or section 148 or section 153A or section 153C of the Income Tax Act 1961.

Source: PIB

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‘No Filing of returns’ scheme for salaried class earning less than Rs. 5 Lakh to be notified by June, 2011

‘No return’ scheme for salaried class earning less than Rs. 5 Lakh to be notified by June

The Chairman of Central Board of Direct Taxes ( CBDT), Sudhir Chandra, today said the scheme to 

exempt salaried people earning up to Rs 5 lakh annually from filing income tax returns will be notified in the first week of June. The scheme was announced in the Union Budget 2011-12 by Finance Minister Pranab Mukherjee.

“A category of small-salaried tax payers whose net salaried income is not above Rs 5 lakh and whose tax is deducted at source by the employer who files return, will be exempted from filing returns,” Chandra told reporters here.

“The scheme for this category will be notified in the first week of June,” he said. “But if the taxpayer is claiming a refund from the l-T department, then he will have to file the return.”

The scheme will provide relief to about 70 to 80 lakh people from filing l-T returns. “We are also trying to exempt small bank-interest income, the tax on which has been deducted at source, under this scheme,” he said.

“A new facility has been introduced on filing of electronic returns. At the click of the mouse, a portal will open…on which you can view every month how much money your employer has deducted, and whether it has been deposited in the government kitty,” Chandra said.

Source- PTI

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DTC to be implemented from 1st April, 2012: Pranab

Finance Minister Pranab Mukherjee on Monday said the Direct Taxes Code (DTC), which will replace the Income Tax Act, is proposed to be implemented from 1st April, 2012.

"… The code is proposed to be effective from April 1, 2012," Mukherjee said in his Budget speech 2011-12.

In the DTC Bill, which was introduced in Parliament last year, the annual I-T exemption limit is proposed at Rs 2 lakh, compared to Rs 1.6 lakh at present.

Under the Bill, the government seeks to widen tax slabs to levy 10 per cent tax on income between Rs 2 lakh and Rs 5 lakh, 20 per cent on Rs 5-10 lakh and 30 per cent above Rs 10 lakh.

Currently, income up to Rs 1.6 lakh per annum is exempt from tax for individuals. For women and senior citizens, the limit is 1.9 lakh and 2.4 lakh, respectively.

The tax is levied at a 10 per cent rate on income between Rs 1.6 lakh and Rs 5 lakh, 20 per cent on Rs 5-8 lakh and 30 per cent above Rs 8 lakh.

source-DDnews

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Exemption Limit for Individual Tax Payers Raised to Rs.1,80,000

Qualifying age for Senior Citizens Lowered to 60 Years 

Senior Citizens above 80 Years to Get Exemption upto Rs. 5,00,000

The exemption limit for the general category of individual tax payers has been enhanced to Rs. 1,80,000 from Rs. 1,60,000 in the General Budget 2011-12, presented by the Union Finance Minister, Shri Pranab Mukherjee in the Lok Sabha today. The measure will provide a uniform tax relief of Rs. 2,000 to every tax payer of this category, besides moving closer to Direct Tax Code (DTC) rates.

Qualifying age for Senior Citizens has been reduced from 65 years to 60 years and exemption limit for Senior Citizens has been enhanced from Rs. 2,40,000 to Rs. 2,50,000. A new category of Very Senior Citizens, 80 years and above, has been created who will be eligible for a higher exemption limit of Rs. 5,00,000. 

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