ITS VERY VERY ANNOYDING NEWS WHICH THE CONGRESS GOVT. HAS COME UP WITH FOR SALARIED PEOPLE.....
 
It is heard that Congress government is planning to scrap tax exemptions on various policies like LIC, NSC, HRA, Mutual Funds & Other section 80C benefits (Exemptions Upto 1 lakh).

What does that mean:
- You cannot get tax exemptions on your HRA, i.e. No business of showing House rent agreement & receipts. You will be taxed on the whole HRA.
- You cannot claim tax exemptions by showing LIC Policies or by having NSC Bonds.
- You wouldnt' be able to get tax exemptions on Housing loans.
- No Tax benefits on Mutual/Infrastructure bonds.

What does government wants:
Government is targeting the salaried people and is making sure that no tax exemptions can be availed and thereby collecting as much tax as possible from our salaries.

What does government wants us to do:
This is in discussion and government wants people to provide their feedback on these future decisions and will thereby decide by the number of feedbacks received.

** Your feedback is important and will decide how much of our Hard earned money is going to government. **

Please write a short email any one of these guys stating whether you want government to continue or discard these existing policies by 5th July 2006.

Ms. Anita Kapur, Joint Secretary, TPL-I, Room No. 147-B/I, North Block, New Delhi.
e-mail: jstpl1@nic.in or

Ms. Monica Bhatia, Director, TPL-I, Room No. 147-D, North Block, New Delhi.
e-mail:dirtpl1@nic.in  or

Ms. Pragya S. Saxena, Director, TPL-II, Room No. 147-E, North Block, New Delhi.
e-mail: dirtpl2@nic.in

Remember guys its time to make difference, So please dont forget to email your comments and to Forward this email to as many people (Friends, colleagues, relatives).
The more the NO's , the lesser the chance of discarding these exisiting policies.

I am copying a list of items which would probably be removed from the list of tax exemptions

80C,80CCC,
80CCD,
The following investments & payments, inter alia,  with a maximum limit of  Rs I,00,000 are eligible for deduction:

80C

• premium on Life Insurance policy:

• Sum paid under a contract for a deferred annuity

•  Contributions made to Employees Provident Fund Scheme, Public Provident Fund, recognized provident fund, approved superannuation fund

• Subscription to notified savings certificates (National Savings Certificates (VIII Issue).

• Contribution to notified unit linked insurance plan of LIC, Mutual Fund.

• Subscription to notified deposit scheme or notified pension fund set up by National Housing Scheme
  
• Repayment of  amount borrowed for purchase/construction of residential house property
  
• Contribution by an individual to any pension fund set up by any notified Mutual Fund or by the UTI.

• Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial engaged in development of infrastructure projects.
  
• Payment of tuition fees for the full time education of 2 children

• Investment in fixed deposit of a scheduled bank provided the fixed deposit  is in accordance with a scheme notified by the Central Government.

80CCC
Contributions to certain pension funds of    insurance companies (up to Rs. 100,000/-)

80CCD
Contribution to pension scheme of Central Govt. upto 10% of salary and matching contribution by the
employer
Individual and HUF for 80 C,
Individual for 80CCC and 80CCD