Raise Income Tax Exemption Slab to Rs. 5 Lakhs: NC JCM Staff Side

Raise Income Tax Exemption Slab to Rs. 5 Lakhs: NC JCM Staff Side

A letter has been written to the Finance Minister presenting the demand to raise the income tax exemption slab.

Mr. Siva Gopal Mishra, the Secretary of the National Council JCM Staff Side, has sent a letter regarding income tax exemption. In the letter to the Finance Minister Arun Jaitley, it was suggested that the income tax limits be raised to Rs. 5 Lakhs for individuals, Rs. 7 Lakhs for senior citizens, and Rs. 10 Lakhs for super-senior citizens. A request has also been presented to exempt all the allowances from income tax. The letter refers to the recommendations made by the 5th Pay Commission in order to explain its demands.


The letter specially stresses for the exemption of Fixed Medical Allowance granted to pensioners, from the income tax calculations.

Income Tax exemption limit should be raised to Rs 5 Lakh: Arun Jaitley

 Income Tax exemption limit should be raised to Rs 5 Lakh: Arun Jaitley

 Arun Jaitley, one of BJP’s prominent leaders says that raising income tax slab to Rs 5 lakh will benefit more than thirty million people in the country. He also added that direct tax should be reduced, If the Income Tax limit is raised from Rs. 2 lakh to Rs. 5 lakh, 3 crore people will save Rs. 24 crore which will lead to a small impact of 1 to 1.5 per cent of the National Tax Fund.

All 100% of the Government employees pay taxes without fail, all the time. There is no doubt about it.

Each year, with Government employees losing about a month’s pay as taxes, the suggestion to raise tax slab to Rs. 5 lakh is a welcome move. But, since such ideas are being aired only around election time, they lose credibility.

It has almost become a routine for the Government employees to eagerly hope for a tax slab raise during each annual budget presentation, and be disappointed. There haven’t been any alternative savings options to avoid income tax this time also.

Those who had got employed after 2004 have no options to save and are paying income tax even for comparatively lower incomes.

Will this situation continue?
Only the new Government at the Centre will have the answer to this question.

Source: 90paisa.blogspot.in
[http://90paisa.blogspot.in/2014/04/income-tax-exemption-limit-should-be.html]

Income Tax returns can still be filed even after the deadline: IT dept. urges

Income Tax returns can still be filed even after the deadline: IT dept. urges
A press release of PIB Mumbai said that those who missed the deadline of August 5 can still file their income tax returns...

IT Department urges all those tax payers to file their IT Returns, who missed even the extended deadline of August 5.

The Income Tax Department has urged all those tax payers who have not filed their Income Tax Returns, even by the extended deadline of August 5, 2013, to file their returns at the earliest to keep away unavoidable difficulties.

Those who missed the deadline of August 5, 2013 can still file their IT Returns.  If all your taxes are paid and there are no refunds to be claimed it is quite straight and simple. The IT return can be filed before March 31, 2014.  If the return is not filed by March 31, 2014,  there will be a penalty of Rs 5000 that will be levied.  Those with tax dues will have to pay late payment fee leviable for every month of delay since April 2013.

All those with total income of Rs 5 lakh and above and all those having foreign assets have to mandatorily file their IT returns online. More than 1.23 crore tax payers filed their returns online this year. Those with total income less than Rs 5 lakh can file their returns off-line.

While Income Tax Department gives taxpayers certain grace period to file their returns, there are certain disadvantages associated with late filing of IT returns.  Those who file their returns late, can not modify their returns if there are any mistakes. They also can not carry forward any short term and long term losses.

The Department keeps a close watch on transactions and possesses necessary tools to detect tax evasions. A person defaulting in filing returns of income could be liable for prosecution u/s. 276CC of the Income Tax Act, 1961.

Conviction may result in rigorous imprisonment for a term not less than six months but which may extend to seven years and a fine, if the tax liability which has been evaded exceeds Rs 25 lakhs.  In other cases ( tax evasion below Rs.25,00,000/-), a defaulter would be liable for conviction for not less than three months but which may extend to two years and a fine.

It may be recalled that recently, the Additional Chief Metropolitan Magistrate, New Delhi sentenced a tax payer to six months imprisonment in one assessment year and one year imprisonment in subsequent Assessment Year for repeating the offence of not filing return of income.

PIB News

Government urges all tax Payers to pay Appropriate taxes and to disclose their True income within the Current Financial Year...

Government urges all tax Payers to pay Appropriate taxes and to disclose their True income within the Current Financial Year...

A Compliance Management Cell has been set-up to Ensure Follow-up Action and Track Return Filing and Tax Payment of the Target Segment; 70,000 Letters are being sent in 2 Batches to High Priority Cases in this Month

The Union Finance Minister Shri P. Chidambaram has repeatedly emphasized that there is need for a non–intrusive tax administration to enable the tax payer to file his/her return and pay appropriate taxes.

In the statement made by the Revenue Secretary, Government of India to the media on 11th February 2013, he had mentioned that the Directorate of Systems has undertaken a business intelligence project to identify PAN holders who have not filed Income Tax Return and about whom specific information is available in Annual Information Return (AIR), Central Information Branch (CIB) data and TDS/TCS Returns. Information in the Cash Transaction Reports (CTRs) of FIU-IND was also included as part of this data matching exercise. This data analysis has identified target segment of 12,19,832 non-filers linked to more than 4.7 crore information records. Rule based algorithms were used to identify high priority cases for follow-up and monitoring.

Letters were sent in three batches to 1,05,000 high priority cases seeking to know whether the person had filed his Income Tax return or not. The letter contained the summary of the information of financial transaction(s) along with a customized response sheet.

Preliminary assessment of the results show that a large number of taxpayers have filed return of income and paid self assessment tax after initiation of this exercise. Taxes of more than Rs. 600 crore has been paid as self assessment tax and advance tax by the target segment in last three months.

This exercise is now being expanded and a compliance management cell has been set up to ensure follow-up action and track return filing and tax payment of the target segment. Another 70,000 letters are being sent in 2 batches to other high priority cases in this month, of these, the first batch of 35,000 letters has been dispatched on 20/5/2013.

This data analysis initiative has also helped in defining the scope and requirements of a comprehensive Data Warehouse and Business Intelligence (DW & BI) Project of the Income Tax Department. The DW&BI Project will develop a comprehensive integrated platform for effective utilisation of available and accessible information to promote voluntary compliance, deter non-compliance and impart confidence that all eligible persons pay appropriate tax. The project will integrate enterprise data warehouse, data mining, web mining, predictive modelling, data exchange, master data management, centralised processing, compliance risk management and case analysis capabilities.

Government once again urges all tax payers to disclose their true income and pay appropriate taxes within the current financial year.