MARCH 13, 2012

I-T Exemption to Newly-Married Couples?

Compiled by TIOL Editorial

TODAY we bring you a compilation of suggestions from our Netizens - Editor

AS on date, Government has given tax benefit to Women / Senior citizen / handicapped persons. Now we request our finance minister that income tax benefit may be given to newly married couples to a certain limit. This amount should be deducted directly from income. This tax exemption is a gift to newly married couples from our finance minister.

Vivek Sadavarte, Assistant Manager, National Insurance Co Ltd.,

MAT provisions in Income Tax:

While calculating the Minimum Alternate Tax (U/s 115JB of IT Act,1961), companies are paying MAT for their earnings even if they are less than the indexed value. E.g Rs.100 invested in year 1 and it became Rs.120 in year 4 and sold. No Capital Gains tax liability arises after indexation but companies are paying MAT on this Rs.20/- and losing the cash outflow. Companies are already suffering with low return and in addition the net cash flow is also affected. I suggest FM should allow the deduction at least to the extent of indexed value for the purpose of MAT calculation. This is encouraging the people to hold the long term assets in the hands of individuals rather than bringing under corporate fold.

A.Srinivasa Rao asrao@myhomeconstructions.com

The Income tax limit for salaried persons should be raised to Rs.5.00 Lakh and above 5 lakh there should be fixed at 30%.

Every Medical Practitioner (Doctor) and Legal Advisor (Advocate) should be brought under income tax as they are earning more than any common person and without giving receipts for their earnings.

A.V.Kulkarni, Manager-Excise(Corp.); excisehead@dhoottransmission.com

Deduction u/s 352AB of Income Tax Act should be Extended /continued to boost the In House Research & Development to sustain the Industrial growth of the country on technology development.

"Anandi Prasad [ SRF - HO ]" Anandi.Prasad@srf.com

Considering present inflation Income tax exemptions & tax rate need to reviewed as under:

For housing loan interest deduction should be 2 Lac in place of Rs 1.50 Lac in present.

Prakale B M prakale.bm@baglagroup.com

1) Child education Allowance:  the exemption limit for Children education allowance may be raised from Rs.100/- per month to Rs.2,000/- per month.

2) The exemption limit for transport allowance to meet expenditure of commuting from residence to place of work may be raised from Rs. 800/ - to Rs.5,000/- per month.

3) Reimbursement of Medical expenses under Section 17(2) (viii) to be raised from Rs.15,000/- to 50,000/-

4) Limit of deduction under section 80C. The overall limit of Rs.1,00,000/- is inadequate as compared to the investments which are covered under the section.  Hence the deduction limit may be raised to Rs.1,50,000/- to provide different options of investment to the employee.

5) A new Section may be introduced to provide for the deduction up to Rs.20,000/-  of interest income on bank deposit.

6) The property price have increased in last 10 years.  Hence the limit of deduction on interest paid against self-occupied property may be increased from Rs.1,50,000/- to  Rs.3,00,000/-

B Giridharan bgiridharan@royalenfield.com

Once the per capita income is going up, there is no doubt in increasing personal income tax limit up to Rs.3 lakhs   I wish the Almighty, The Hon'ble Finance Minister, Shri. MukherJee, need to have sound sleep, rather than his sleepless nights.

K.Rajendiran K.Rajendiran@greavescotton.com

It is likely that Direct Tax code will be introduced in the ensuing budget.  In the IT Act, there is a provision that if there is a company which undertakes scientific research as its objects, any contribution made for scientific research by the other company for its products, then such a company gets weighted deduction.  However, this important provision (benefitting to all industries) is proposed to be withdrawn from the DTC.  However, the other provisions of Scinetific research in Section 35 are retained in a similar manner.

It would be appropriate above provision will also continue.

M. A. PURANIK, GRINDWELL NORTON LTD.

(1) Limit of Rs. 100,000/- u/s 80C should be enhanced up to Rs.200,000/- (limit of of Rs.100,000/- is since long time, there is no any increase in this limit)

(2) There should be no any Tax up to taxable income of Rs.200,000/- in case of Individual and HUF.

(3) Limit of exempted conveyance of Rs.800/- per month should be enhanced up to Rs.2000/- Per Month (Since long there is no any change in this deduction)

(4) Issue of TDS Certificate to deductee should be discontinued from 01.04.2012, since ITO giving credit of TDS only based on Tax Credit showing in Form 26AS of Deductee.

(5) Limit of Medical reimbursement of Rs.15000/- should be enhance up to Rs.50,000/- because there is huge rise on charges levied by hospitals/Medical Treatment as compared with last 10 years.

(6) There should be exemption of Service Tax in case of all the Infrastructure related services, because this will promote industrial growth, and GDP will rise consequently.

(7) Government should introduce incentive scheme for Real Estate Sector and Automobile sector in the form of Interest rate or Deduction from Taxable income, this will promote to Real Estate and Automobile Sector.

CA Manoj Gokhale: Ambuja Cements Ltd

In my view, the limit imposed in bonds that avail exemption u/s 54 EC should be removed.

It is so difficult for a seller to get a flat of his liking and budget.

The option of either investing in a flat u/s 54 (1) or in bonds u/54 EC should be available.

The bonds could have a lesser interest and maybe a longer period.

The assessee would be happy to invest in bonds than looking for a flat which is so painstaking.

Prakash Jotwani prakashjotwani@gmail.com

1. Amendment Individual or HUF Slab rate:

2. Allow deduction u/s 24 for interest on loan taken for purchase of vacant plot of land or site:

Many of the salaried employees are availing loan for purchase of land to construct the house in future.  In such cases, employees cash flow will be high because of loan EMI and non availability of tax benefit.  As purchase of site is also investment for construction of building, deduction should be given for interest on loan taken for the same.

3.  Increase the deduction limit u/s 80CCC  to 2 lakhs.

4. Provisions of sec 40(a)(ia) should also be extended to overseas payments.

Vanitha.B.K, Toyota Kirloskar Motor Pvt Ltd

Presently, HRA is given exemption subject to condition that it is applicable only to those who are paying Rent.

I would like to opine that the people who are having own house are not able to avail this exemption.

However, I may request the Finance Minister to "at least exempt the amount paid towards corporation taxes(including water charges) on the house" for those who own houses.

Venkatesan

venkatesan1970@gmail.com

1. Increase in limit of 80CCF TO 50,000/-

2. Early Implementation of GST

3. Increase in base income tax slable for all category present 1,80,000/- TO 2,30,000/-

vishalsh@tkap.co.in