Skip to main content

Raise I-T Exemption Cap to Rs 5 L'

By
A Deloitte survey shows 58% of respondents want exemption limit to be raised to Rs 5 lakh from Rs 2.5 lakh
Finance Minister Arun Jaitley should double the basic income tax exemption limit to Rs.5 lakh per year and raise the ceiling for claiming deduction under Section 80C to Rs.2.50 lakh, according to a survey by tax consultant Deloitte.
Almost all respondents want the I-T exemption limit to be raised substantially while 58% of the respondents were in favour of raising it to Rs.5 lakh.
“It will place more money in the hands of consumers resulting in increase in demand pick-up. Also, the increase in the slab limit will kick-start savings which will ultimately lead to increase in investment in the system,“ stated a Pre-budget Expectations Survey Report by Deloitte.
It said that 71% respondents want the limit of the Section 80C to be increased to Rs.2.50 lakh, from Rs.1.50 lakh. “Given the increase in income levels and inflation, the existing limit is low.Increase in limit will help channelise household savings into productive avenues such as insurance, provident fund, equity and the like which will in fully exempted.
Currently, NPS is subject to income tax under the EET (Exempt Exempt Tax) regime -withdrawals from NPS are taxed to the extent of 60%.
However, this is not in parity with other pension schemes such as provident fund, which is under the EEE regime. “The government has positioned NPS as an alternative to PF. Therefore, to bring parity and incentivise employees to be part of NPS, it must be brought under the EEE regime,“ the report added.
According to the Deloitte survey, the government has set an ambitious target to boost infrastructure spending and is in need of long-term funds.“Hence, it is an apt time to reintroduce deduction for investment in longterm infrastructure bonds as it will provide additional avenue for individuals to make investment and save taxes,“ the survey suggested.
This is expected to provide funds to bankroll various infrastructure projects. A majority of the respondents indicated that the deduction for investment in infrastructure bonds should be introduced with a limit of Rs.50,000. turn help boost in frastructure spending and job creation,“ the survey said.
To bring parity in the tax treatment of with drawal from National Pension scheme (NPS) vis-a-vis provi dent fund, 88% of the respondents deman ded that withdrawal of NPS proceeds be
The Economic Times New Delhi,02th January 2016

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more