Jaitley also announced withdrawal of imposing monetary limit for contribution of employers to provident and superannuation fund of Rs 1.5 lakh for taking tax benefit.
Concerned over the rising cases of refund-related grievances of the tax-paying public, CBDT Monday issued fresh directions to the Income Tax Department asking it to process all such cases, pending this fiscal, within 15 days instead of the stipulated 30 days.
Grievance redressal is a major aspect of citizen centric governance and is an important feature of the activities of the Income Tax Department
Finance Minister Arun Jaitley, who had proposed a change in rule aiming at reducing litigation and increasing transparency in the Union Budget 2016, is likely to make an official statement in the House outlining the revised proposal.
The government only wants to encourage investment in pension schemes, it was the phrasing in the Budget speech that caused the confusion over the EPF tax, said a government official.
Labour Minister Bandaru Dattatreya today said he is holding discussions on the controversial budget proposal to tax EPF withdrawals with the Finance Ministry and government will reveal final details on the issue during the debate on Budget.
Some good news for government employees anticipating Centre's response to their demands on salary hike! As per reports, government may agree to restore some of the allowances that were subsumed by the 7th Pay Commission's recommendations.
Sensing the outrage among salaried class on the Budget proposal to tax EPF withdrawals, PM Modi is reported to have intervened, following which the Finance Ministry has reviewed the proposal and is likely to offer some relief to taxpayers.
The Indian Budget has received a positive response from the UK-based Indian business community but the issue of retrospective taxation was flagged as a concern by them.
Finance Ministry on Thursday said it refrained from reducing the corporate tax rate by 1 percent in 2016-17 Budget as it would have resulted in revenue sacrifice of Rs 15,000 crore and impacted the fiscal consolidation programme.
CBDT has said the taxman has not been given any "unfettered" power and adequate safeguards have been deployed for regulating the provisions aimed to check tax evasion from overseas locations.
In yet another step aimed at reducing interface between taxman and the taxpayer, CBDT has notified a new form for e-filing the first appeal before a designated department officer.
The government on Tuesday promised to consider demands for a partial rollback of the proposal to tax 60 percent of withdrawals from provident fund and a ceiling on employers contribution but made it clear that PPF will continue to be exempt from tax.
The government is said to be reconsidering its decision to tax the EPF or retirement fund of employees, due to huge opposition eexpressed by the salaried class
Following is the table of the impact of changes in income tax provisions proposed by Finance Minister Arun Jaitley in the Budget for 2016-17.
Experts have termed tax proposals in the Budget as a mixed bag without major surprises as most key measures were on expected lines.
Know about the key 11 tax-related announcements proposed by Finance Minister Arun Jaitley in Budget 2016-17.
The Finance Minister also announced deduction for additional interests of Rs.50,000 per annum for loans up to Rs.35 lakh sanctioned in 2016-17 for first time home buyers, where house costs does not exceed Rs.50 lakh.