WARN­ING: Non-pay­ment of in­come tax may soon be­come pros­e­cutable

Consumer Voice - - Income Tax -

The gov­ern­ment may pros­e­cute those ac­cused of evad­ing taxes un­der the Pre­ven­tion of Money Laun­der­ing Act (PMLA) as part of a wide-rang­ing crack­down on black money. Fur­ther, non-dec­la­ra­tion of for­eign bank ac­counts and as­sets may also be made a crim­i­nal of­fence, ac­cord­ing to peo­ple who have been briefed on the think­ing within the tax au­thor­i­ties and the fi­nance min­istry. Un­der laws cur­rently in place, ne­glect­ing to pay in­come tax is a com­pound­able of­fence – that is, of­fend­ers can end pro­ceed­ings by pay­ing a penalty. Fail­ing to pay ser­vice tax, in cer­tain spe­cific sit­u­a­tions, and ex­cise duty are crim­i­nal of­fences even now. Such acts could be added to the list of of­fences to which PMLA is ap­pli­ca­ble, known as ‘pred­i­cate of­fences’. An­nu­ity plan of LIC or any other in­surer for re­ceiv­ing pen­sion from the funds re­ferred to in Sec­tion 10 (23AAB)

Amount paid (ex­clud­ing bonus and in­ter­est paid) as above by salaried in­di­vid­u­als to keep in force a con­tract for any an­nu­ity plan of LIC or any other in­surer for re­ceiv­ing pen­sion from the funds is ex­empted from tax.

Cen­tral gov­ern­ment em­ploy­ees who joined the ser­vice on or af­ter 1 Jan­uary 2014 and who in­vest in such an­nu­ity plan or pen­sion fund as above are also en­ti­tled to this ex­emp­tion un­der Sec­tion 80 (CCD [I]). This ex­emp­tion, how­ever, can­not be more than 10 per cent of his salary, which in­cludes DA but ex­cludes all other al­lowances and perquisite­s.

It is also to be noted that the ag­gre­gate amount of de­duc­tion un­der sec­tions 80 (C), 80 (CCC) and Sub-Sec­tion (1) of Sec­tion 80 (CCD) shall not ex­ceed Rs 150,000. How­ever, con­tri­bu­tion made by the cen­tral gov­ern­ment or any other em­ployer to a pen­sion scheme un­der Sec­tion 80 (CCD [2]) shall be ex­cluded from the limit pro­vided un­der Sec­tion 80 (CCE). Tax de­duc­tion of Rs 2,000 un­der Sec­tion 87 (A) for as­sessees of tax­able in­come be­low Rs 500,000 Do not for­get to claim de­duc­tion un­der Sec­tion 87 (A) which pro­vides for a max­i­mum tax re­lief of Rs 2,000 for as­sessees with a tax­able in­come be­low Rs 500,000. Many of us could be un­aware of this pro­vi­sion. Pay­ment of med­i­cal in­sur­ance pre­mium en­joy­ing tax de­duc­tion un­der 80 (D) Here, tax de­duc­tion is avail­able up to Rs 15,000 for self/fam­ily and ad­di­tion­ally up to Rs 20,000 for medi-claim in­sur­ance in re­spect of par­ent/par­ents of the as­sessees.


De­duc­tion un­der this sec­tion will also in­clude con­tri­bu­tion made to the Cen­tral Gov­ern­ment Health Scheme-CGHS (not ex­ceed­ing Rs 15,000). The pre­mium should be paid in re­spect of health in­sur­ance of the as­sesse, his fam­ily mem­bers or his par­ents. De­duc­tion of Rs 40,000 in re­spect of med­i­cal ex­pen­di­ture ac­tu­ally paid u/s 80 DDB A tax de­duc­tion of Rs 40,000 is avail­able in re­spect of med­i­cal ex­pen­di­ture ac­tu­ally paid. Fur­ther, where the ex­pen­di­ture is in­curred for a se­nior cit­i­zen,

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.