Archive for Loan

Following deduction will be available from salary for ITax Rebate 1) Mileage 2)Compensation under voluntary retirement scheme; 3)Amount of gratuity received on retirement or death; 4)Amount received on commutation of pension

SALARY,ALLOWANCES,PERKS DIRECT TAX CODE

Dear Friends,

When I first read the Direct Tax code , Like other people I first read the New Tax Rate and published the same for you and all other website in www discuss benefits from direct tax code but now we will discuss here what have taken back from us. Remember as per Govt Statement tax revenue will Increase after implementation of new Direct Tax Code. In This post we will cover the salaried Class.

Under the Code, the salary will now include, inter-alia, the following:-

  1. the value of rent free, or concessional, accommodation provided by the employer irrespective of whether the employer is a Government or any other person; (earlier nominal value for Govt Employees)(read earlier rules here:valuation of rent free accommodation)
  2. the value of any leave travel concession;(earlier exempted up to 2 journey in four year block)(read earlier rules here: LTC Exemption
  3. the amount received on encashment of unavailed earned leave on retirement or otherwise;(earlier exempted for 30 days for each year of service or maxi 3.00 Lakhs) (read earlier rules here:leave encashment )
  4. medical reimbursement; and 
  5. the value of free or concessional medical treatment paid for, or provided by,the employer.(read earlier rules here:valuation of medical facility)
  6. The value of rent-free accommodation will be determined for all employees in the same manner as is presently determined in the case of employees in the private sector. The new regime of comprehensive taxation of perquisites across employees in all sectors of the economy will improve both the horizontal and vertical equity of the tax system.

Download Direct Tax code 2009 Download Direct tax code discussion paper Read Direct tax code Online

DOWNLAOD NEW TAX RATES OF INDIVIDUAL

Further the following deduction will be available from salary income

  1. amount of professional tax paid;
  2. transport allowance to the extent prescribed;
  3. prescribed special allowance or benefit to meet expenses wholly and exclusively incurred in the performance of duties, to the extent actually incurred;
  4. compensation under voluntary retirement scheme;
  5. amount of gratuity received on retirement or death;
  6. amount received on commutation of pension; and
  7. pension received by gallantry awardees.

Further Item at Sr No 4,5,6 would  be available to the extent the amounts are paid to, or deposited in a Retirement Benefits Account. The amounts received from an approved superannuation fund, hitherto exempt from income tax, will henceforth also be treated in the same manner.

So there will be no exemption for House rent Allowance (HRA) (read HRA present rule) Further exemption for following allowances has also not been provided in new Direct tax code as compare to present tax provisions.

  1. entertainment allowance
  2. children education allowance
  3. children Hostel allowance
  4. HRA (house rent allowance)

The list is not exhaustive but we can say that other than deduction prescribed above no deduction from salary income is allowed. Further EET regime has been now fully introduced for all type of savings scheme which we discuss in separate post.

E: exempt at the time of Investment

E:Interest ,bonuses ,increments during the period of investment will not be taxed at all

T:full amount received at the time of Maturity is taxable in the hands of assesses.

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Dedicated Freight Corridor

Lalu to visit Japan for DFC loan

New Delhi (PTI): To expedite the work of Dedicated Freight Corridor (DFC), Railway Minister Lalu Prasad will undertake a week-long trip to Japan for a detailed discussion on the 450 billion yen Japan International Cooperation Agency (JICA) loan.

"Though JICA has agreed in principle to provide 450 billion yen soft loan (Rs 17,000 cr) for the 1480 km long Western Corridor of the DFC, there are still some issues which needs to be addressed and the same will be taken up during the visit," a source in the Railway Ministry said.

Besides Lalu, a high-level railway delegation, including Minister of State for Railway R Velu, Chairman Railway Board K C Jena and three senior Railway Board officials are scheduled to leave for Tokyo on January 11.

Currently JICA is conducting an environmental impact assessment on the Delhi-Mumbai Western Corridor. The report is likely to be submitted in March.

While Railways have agreed for the electrification of the Western Corridor route by Japan, it has also decided to buy electric locos from that country.

"Railways has to utilise 30 per cent of the loan amount for buying equipment for the DFC project as per the JICA condition," said the source.

It is expected that railways will buy about 160 high powered electric locos from Japan for the DFC.

According to the plan, Railways will procure high speed locos with 9,000 horse power capacity from Japan.

Besides locos, the ministry is also likely to purchase signalling system from Japan.

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