10 income tax changes from today
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NPS is practically of non remunerative for those who earn less than Rs10-12 Lakh/year or may not be useful for those more than 45-50 years age. The returns of Pension funds are dismal / match saving rates. Schemes like UTI Retirement Benefit Plan charge heavy penalty on withdrawal. The government is charging tax on 60% corpus in-spite of long lock-in period. The lumpsum withdrawal of all corpus is not allowed even after retirement. One has to compulsion to buy annuity/ pension from fund managers who generally give not more than 3-4%. more
Apr 09
Please note that the government has preferred more punitive amendments for the 2% people who honestly pay the tax & file returns. There are no provisions / Social safety net to protect Senior Citizens from miseries of 1] Falling interest rates 2] Lower rent income from Let out houses/flats they toiled to build through out their life. 3] No standardization of medical/ hospital expenses.Steep rise in hospitalization/ medical treatment. 4] The insurance premiums are raised for both medical & life insurance above inflation rate. They have reduced the rate return [so called bonus] considerably. 5] The investment in debt funds are taxed for capital gains for 3 year duration. 6] Infrastructure bonds [banned by Mr P Chidambaram] were expected to give Tax relief to taxpayers. But these are not instituted. 7] Banks are allowed to charge at will, without any control from RBI Govere & Finance Ministry. 8] Taxfree saving instruments are thus not available to honest taxpayers. We complain that domestic saving rates have decreased, but there is no incentive to save. 9] The unemployment rate has jumped & Service tax / Service charges are increased. This contradicts as the Service sector provides more employment. The demand for services will not pick-up by proposed 15% to 18% Service tax is levied in GST than nominal 4%. more
Apr 09
