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Income Tax Expectations of July 2014 India Budget 

It is not an easy task to manage one's household budget. A large section of our population in urban and rural India faces this dilemma every month. Though the income levels and economic opportunities have increased since India opened up its economy to foreign investment in early 1990’s, the last few years have particularly been tough with relatively static income levels and rising inflation.
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In spite of the above challenges, the households in the country have a lot of expectations from this year's budget, as they look forward to some meaningful positive change in their day- to- day lives. First and foremost, there is a need to bring in a change in the approach and day- to- day functioning of the tax administration.

Interestingly, the recent report submitted by Parthasarthi Shome on Tax Administrative Reform Commission (TARC) highlights this need. TARC has recommended that the tax administration should adopt a “customer focus" approach. Once the trust between the administration and tax payer increases, it is bound to increase compliance and collections.

As time is short, to make any radical changes in this year's budget per se, it may be kept as part of the long- term reform initiative with some policy announcements being made now. The popular tax deduction under Section 80C of the income tax act, where an individual could claim deductions up to Rs 1 lakh has not been changed for long.

Over the years, this tax benefit has been cluttered with many conflicting economic priorities that the government wants to promote. To highlight the issue, an individual could invest in a provident fund or pay the premium for his life insurance or incur the expenses on the education of his children, all under one tax benefit. This benefit requires reconsideration to align it with the current macro- economic priorities of the government. For instance, a separate deduction could be allowed specifically for the life insurance term policy to encourage income earning members of the household to buy this insurance cover.

Moreover, this popular deduction of Rs 1 lakh has not kept pace with the rising inflation and hence needs revision. This limit should be enhanced to Rs 3 lakh now and eventually to Rs 5 lakh. At present, the maximum amount not chargeable to tax for individuals is Rs 2 lakh, which is quite low. This limit should be revised to Rs 3 lakh and should be linked with the inflation index, so that it is revised automatically on an annual basis. The highest tax rate of 30 per cent is triggered at an income exceeding Rs 10 lakh. This limit should be increased to Rs 20 lakh. Similarly, the other slab rates should be suitably modified.

Another important tax relief generally availed of by the households is the deduction for interest paid on housing loan for a self- occupied house property up to Rs 1.5 lakh. This deduction has not been revised for long and has not kept pace with the rising cost of construction and housing loans. This should be increased to Rs 3 lakh now and eventually to Rs 5 lakh.  There are a few other benefits under the current tax law that have outlived their utility and require a reconsideration such as medical reimbursement to the salaried employees by their employer for reimbursement of expenses up to Rs 15,000 per year and conveyance allowance up to Rs 800 per month.

These limits should either be enhanced substantially like an increase the medical expense reimbursement limit to Rs 50,000 per year and conveyance allowance limit to Rs 3,000 per month or these should be discontinued and instead clubbed in the form of a standard deduction / exemption of Rs 1 lakh per year The New Pension Scheme ( NPS) has not evinced much interest from private sector employees. The key reason is its taxation model especially in comparison with the public provident fund ( PPF). NPS works on exempt, exempt, tax ( EET) model. The income received finally at the retirement age is liable to tax. PPF works on exempt, exempt, exempt ( EEE) model i. e. an individual can claim deduction for the investment made, the interest accrued in the account is not taxed and finally the amount received on maturity or other contingency is generally not taxable. To popularise NPS, the EEE model should be extended to NPS as well.

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What Blockchain and Bitcoin Mean for the Protection Business You may have heard the expressions "blockchain" or "Bitcoin" utilized as a part of tech hovers in the course of recent years. These ideas, alongside intense utilize cases, are changing how we consider money, exchanges and contracts.

Simultaneously, they're likewise changing how we consider the protection business. These progressions will affect protection bearers and operators, and how protection is purchased and sold. That implies understanding blockchain and Bitcoin is essential in case you're hoping to win in the cutting edge protection industry. This post has you secured. It gives meanings of blockchain and Bitcoin, at that point separates why this data is critical to protection industry experts. 


In their book Blockchain Upheaval, Wear and Alex Tapscott clarify that blockchain is "the brilliantly straightforward, progressive convention that enables exchanges to be at the same time mysterious and secure by keeping up a sealed open record of significant worth." The blockchain is intended to store exchange records ("obstructs") in numerous spots, connected to each other (henceforth the "chain" some portion of the name) and straightforward to any client who wishes to see them. Critically, this record can't be changed, so anybody can see a typical and exact rundown of authentic exchanges. Bitcoin is a kind of computerized money that utilization's blockchain innovation. It's not by any means the only one that utilization blockchain, yet is one of the more prevalent alternatives available. Despite the fact that bitcoin is the most famous cryptographic money upheld by blockchain innovation, other advanced monetary forms, for example, ether and litecoin—utilize blockchain innovation too. All bitcoin exchanges are recorded in a decentralized open record that can't be adjusted. In principle, this is something worth being thankful for on the grounds that it makes trust among all gatherings of the exchange and gives an unmistakable trail of procurement that avoids fake exchanges. This is one manner by which blockchain can possibly change exchanges. However, remember that blockchain does not need to be money related. 

Ramifications OF BLOCKCHAIN AND BITCOIN FOR THE Protection Business Blockchain applications like cryptocurency, shrewd contracts and decentralized models for protection will change how protection is appropriated. What's more, when you change how protection is disseminated, you significantly modify how existing players profit and test business as usual. Insurance agencies could utilize the blockchain to make a disseminated record that cultivates straightforwardness, successfully tracks cases and exchange history, and gives perceivability into the authenticity of a claim. Brilliant contracts based on the blockchain can balance deceitful claims by recording exchange history on people in general system, which would dismiss different cases for a similar occasion. This could spare the business billions and open up gigantic chances to make huge measures of significant worth for buyers. Cryptocurriencies can make trust amongst safety net providers and their clients could make trust. For example, INGUARD was the principal insurance agency to acknowledge bitcoin installments. We did this since it was the correct activity for our well informed clients—a state of mind very rare in the protection business today. Consider: 40% of protection premiums turn over every year—and 66% of buyers would purchase protection on the web in the event that they could. 

What's more, and, after its all said and done, they're scarcely happy with back up plan sites. Shoppers don't confide in their safety net providers to put their best advantages on the most fundamental level or execute in a reasonable, break even with way. Bitcoin and blockchain innovation, as we would see it, are devices that can possibly carefully ensure customers, as well as reestablish assume that their needs are being met. Innovation appropriation in the protection business ought to dependably make more an incentive for shoppers. It should expel contact from the purchasing procedure and empower a superior client encounter. What's more, its adequacy ought to be estimated by consumer loyalty, not the amount PR or advertising duplicate another framework creates. That doesn't generally happen. In any case, with the focal points blockchain innovation gives, that could begin to change. Also, that will be advance in reality.