NRI – Not required Indian – BJP wants IT exemption limit at 3 Lakhs
BHARATEEYA Janata party leaders met the FM yesterday and submitted its wish list and objections to the Direct taxes Code. BJP wants:-
i) Justice and protection to small and middle income group: 90% of the tax payers shall be paying more tax under DTC. Raising the minimum exemption limit to Rs.3,00,000, Rs.3,50,000 for women And Rs.4,00,000 for the senior citizens.
ii) Incentives for savings, medical expenses, etc.: The present provisions of tax incentive for savings and exemption regarding medical expenses, LTC, leave salary, etc., should not be withdrawn.
iii) House/quarters occupied by Govt. employees: The impractical suggestion regarding taxing house/quarters provided for the Government employees should be removed.
iv) Common maximum rate of tax for companies and individuals; DTC has proposed 30% highest rate of tax for individuals and partnership Firms while 25% for companies. Same 25% tax should be applicable to all
v) DTC detrimental to housing sector: a)The present provision regarding tax benefit for housing loan & interest be maintained & limit should be raised. b) Notional rent provision on rental housing should be removed.
vi) Social security: Government proposal to tax Provident Fund, Life Insurance should be scrapped. The present model EEE be continued.
vii) Long term capital gain: a) Security Transaction Tax should be removed. b) Concept of long term capital gain and short term capital gain be continued. c) Encouragement and protection to own a house, investment in housing be encouraged.
viii) Special incentive/secured investment for women and senior citizens: Interest received upto Rs.25,000 per month to women and senior citizens should be exempted. Tax incentive secured schemes, financial instrument should be provided for these.
ix) Small and Medium Entrepreneurs: DTC is harsh on small and medium entrepreneurs including thelawala. The present provision of 8% presumptive profit should be reviewed. (a) Harsh provision regarding maintenance of books and accounts and also keeping receipt of Rs.50/-, etc., should be revisited. (b) The provision regarding cash receipt/payment of Rs.20,000 should be increased to Rs.50,000.
x) Charitable and religious trusts: DTC's concept to tax the charitable and religious trusts and ignore their Constructive charitable activities is unhealthy provision regarding 15% Accumulation should be raised to 50%.
xi) MAT (Minimum Alternate Tax): DTC proposal to levy 2% tax on the asset shall be a deadly blow on the Infrastructure sector. The present system of MAT on the profit earning should be continued.
xii) NRI treated as “Not required Indian”: DTC treated Non-Resident Indians to ‘Not Required Indian”. Taxing the interest and investment income at flat rate 20 to 35% is objectionable.
xiii) TDS: DTC proposed provision harsh provision about TDS. This will be an additional harassment to the small tax payer, women and senior citizen. Proper protection and exemption be provided to this segment.
xiv) Arbitrary power to the Tax Administration: DTC has proposed arbitrary, draconian power to the Tax Administration. In the name of privatization and liberalization, Government has proposed Inspector raj. All provisions extending such arbitrary power regarding opening assessment, etc., should bedropped.