Finance Minister Sitaram rejects taxpayers' excuse for raising income tax slabs

As per the new provision, the amount of interest paid on a home loan will not be deducted

Ahmedabad, Dist. February 1, 2020, Saturday

The finance minister has done a disservice to individual taxpayers by depriving them of up to 70 per cent of tax benefits by appearing to provide tax relief. Finance Minister Nirmala Sitaram has today made six slabs of 5, 10,15, 20, 25 and 30 percent for individual taxpayers in the budget presented to Parliament today.

Previously, there were only three slabs. The finance minister has tried to point out that the slabs have been increased by relief, but the possibility of actually gaining tax benefits is being eliminated. Individuals or HUF taxpayers with non-business income, including salaries, interest, rent, capital gains or pensions, should have other income. For this new provision has been made compulsory.

The taxpayer with a business income will resort to this option once, and it has been compulsory for him in each subsequent year. Similarly, the taxpayer who reserves this option is required to file a timely return. This option will not be available to them even if they are missed.

The beneficiaries of the new provision will have to go through the benefits of eliminating the Hostel Allowance and Children's Education Allowance. Under section 10 (32), it has been decided to give benefit of the new provision only on condition of non-deduction of income of Rs 1,500 per annum of allowance to children of minors.

Under section 80C, LIC, PPF, Section 80CC have proposed not to pay after the investment of LIC pension. Under 80d the premium for Mediclaim will be refused. The medical treatment under section 80DDB has been stopped from deducting the expenses incurred after income.

The Budget proposes not to deduct interest paid on education loans under section 80E. Extra Rs on the purchased property of the new house. The interest of 1 lakh which was later deducted under section 80EE has been discontinued.

It has been proposed not to deduct the donation income received under section 80G. The businessmen have to pay Rs. The finance minister has proposed to close the amount of up to 24000, which was later deducted from the revenue.

As per the new provision in the budget, the interest amount paid on the bank loan taken for your accommodation will be deducted. First Rs. 2 lakh interest was deducted from the income.

The following has been stopped. In the event that the taxpayer has other property and does not have rental income, the benefit given to the vacation allowance has also been withdrawn.

It has also been decided to discontinue the expenditure incurred so far for scientific research and rural development under section 80 GGA. Donations from 80 GGC political parties will not be given afterwards.

The finance minister has withdrawn the standard deduction of Rs 40,000. Under the new provision, only the beneficiaries of Leave Travel Allowance, House Rent Allowance, will be provided.

All benefits like Conveyance Allowance, Daily Allowance, Uniform Allowance, Research Allowance have been withdrawn. It has been decided to give this benefit only to the non-beneficiary of the Uniform Allowance, Helper-Driver Allowance given under Section 10 (14) to the salaried employee.

Examples of income-tax section 10 (17) MLAs, MPs have also been pulled. The proceeds from the housing project and infrastructure development were deducted under section 80A. It has also been decided not to deduct this income.

Because the salary payer who wants to avail of the new provision is Rs. The standard deduction of 40,000 has been deleted. The amount of investment made in the policy of public provident fund, life insurance corporation till date will not be deducted from the income. This new provision has been made compulsory for those with interest or rental income other than section 35 (AD) business.

The finance minister has talked about this option for both the individual and the HUF taxpayers, but he has not been given the option. As per the new slabs and rules, those seeking tax benefits have increased from three slabs of Leave Travel Allowance, House Rent Allowance, Conveyance Allowance tax to six.

The Budget has also been withdrawn in the Budget by 15 per cent of the allowance given to the purchasers of machinery for business under section 32 (1). Under section 32 (AD) the entire investment in new plants and machinery in the backward or notified area was paid back.

What benefits to the payee being withdrawn?

Under Section 80C, Section 80 CCC and Section 80 CCD, the benefits received on investments up to Rs 1.5 lakh in LIC, PPF, NSC, Pension Fund, Pension Scheme have been withdrawn.

Under section 80-D, the amount of Mediclaim Rs. Up to 30,000 premiums were withdrawn.

Under medical treatment under section 80 DD, Rs. It is proposed to refuse to deduct the following expenses up to 1.25 lakhs.

Rs. 80 / - for medical treatment of a person dependent on him or herself under section 80DDB. It has been proposed to stop paying up to Rs 40,000.

It is proposed not to deduct the entire interest amount paid on loan for higher education under section 80-E.

Extra Rs. On Housing Loan under Section 80- EE. It is proposed not to pay interest deduction of 50,000.

Under section 80 - EEA Rs. 45 lakh for a house worth Rs. In case of loan of Rs 35 lakh, in such case the amount of interest paid on it will be Rs. 1.5 lakh was to be deducted from the income which has been withdrawn.

Section 80EB Heathal Electric Vehicle excluding Rs. A proposal for non-payment of up to 1.5 lakhs has also been made.

The non-payment proposals have been placed in the Budget following the donations made under Section 80-G.

Employer deposits in PF of company employees Rs. An amount above 7.5 lakh has been made eligible for tax

(From Representative) Ahmedabad, Saturday

The entire investment made by the company owner into the employees' provident fund was completely waived. As per the new provision made in the Budget today, the personal taxpayer's account has a budget of Rs. More than 7.5 lakhs will be deposited in PF as employer's contribution. An amount above 7.5 lakh has been decided to be taxable.

In this way, the interest on the surplus deposited in the PF account has also been made deductible. The Finance Minister has today introduced this provision by amending section 17 (2) (7A) of the budget presented to Parliament. As a result of this provision the taxpayer's tax liability will be increased. The cash will be low in his hands, but the tax liability will increase significantly.