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: [email protected] or
Ms. Monica Bhatia, Director, TPL-I, Room No. 147-D, North Block, New Delhi. e-mail:[email protected] or
Ms. Pragya S. Saxena, Director, TPL-II, Room No. 147-E, North Block, New Delhi. e-mail: [email protected]
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
The following investments & payments, inter alia, with a maximum limit of Rs I,00,000 are eligible for deduction:
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
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- Guest 9 years agoGreat move by the government ...now each individual can spend his hard earned money on his near and dear ones instead of saving in stupid schemes with very low interest rates...or lose it all to the flamboyant mutual funds....