DRAFT CODE GOES OFF THE ROAD!

‘Taxing Times’ Crusade Creates A Historic Impact

As FM Assures ‘No New Code Without Consensus!’

“DTC is not Bhagwat Gita

which cannot be changed”

 - Pranab Mukherjee in Lok Sabha (more…)

NRIs treated as Not Required Indians

Harsh, Illogical & Discriminatory Taxing Provisions For NRIs!

Proposals That Will Hurt The Global Indian Sentiment

Flat Rate of Tax

• 20% flat tax on interest & other investment income.
• 30% flat tax on all capital gains.
• Apart from 20% & 30% TDS on above, TDS at a baffling rate of 35% prescribed on all residual income.

No Personal Exemption

• No personal exemption or deduction allowed in computing the above income treated as ‘income from special sources.’

Weird Interpretation

• Poor drafting leads to such a weird interpretation that transfer of a capital asset may attract 30% tax on gross sale consideration.

What a Discrimination?

• Ironical but true! Non-Indian sports-persons, say Ricky Ponting or Shoaib Akhtar, required to pay a concessional tax of 10% on their game, advertisement and column earnings in India, thus enjoying a more privileged tax status than our own sons of the soil living abroad.

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Minus Social Security : EET=Inequity

Hard Hit Small Salaried Deserve Lower Starting Tax Rates!

Both Employment & Retirement Made More Taxing!

• Allowances & Perks – no longer exempt: House rent allowance (HRA), leave travel concession (LTC), medical reimbursement, value of free or concessional medical treatment and children’s education & hostel allowance.

• Puny deductions that will still continue: Professional tax paid, transport allowance to the extent prescribed and prescribed special allowances to meet expenses incurred for official duties.
  
• Retirement may not be as relaxing: Leave encashment on retirement, to be fully taxable.
• VRS compensation, death or retirement gratuity and commutation of pension to be exempt, only if deposited in a Retirement Benefit Account (RBA).
• However, any amount drawn from RBA (including PF contributions and accretions after 1^st April, 2011) under any circumstances to be treated as taxable in the year withdrawal. (more…)