Retirement
Need to assess impact of tax exemption for NPS: Sinha
The government needs to assess the possible revenue loss before providing greater tax incentives, including full exemption, to the National Pension System (NPS), Minister of State for Finance Jayant Sinha said on Tuesday.
 
"We've to analyse and try to figure out exactly what revenue impact would be in case the government gives the exempt, exempt, exempt (EEE) benefit to NPS," Sinha said at a mutual fund event here.
 
Noting that data suggests that the NPS is an attractive long-term, high-return investment that is better than other pension funds, Sinha said: "I think it is very competitive even as it is right now, especially if compared to provident funds."
 
The EEE regime is applicable on investments in the provident funds PPF and EPF.
 
Instead, under the exempt, exempt, tax (EET) regime, exemption is granted on the invested amount as well as on returns or income accumulated but is taxed at maturity or withdrawal depending on the tax slab of the individual.
 
This tax is applicable on investments like Ulip-linked pension plans, pension plans, and the National Pension Schemes.
 
The NPS asset base has crossed Rs.1.1 trillion mark in the first week of October, while the NPS subscriber base also went upwards of 1 crore at the same time.
 
A majority of NPS corpus is generated from retirement funds of government employees, while retail investors avoid subscribing to it because of EET.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Panel set up to simplify Income Tax Act

Delhi High Court's former judge Justice RV Easwar is chairman of the panel

 

The government on Tuesday set up a 10-member committee to simplify provisions of the Income Tax Act for enabling ease of doing business.
 
"The committee will identify provisions in the IT Act which are impacting the ease of doing business and leading to litigation due to different interpretations," an official statement said.
 
Delhi High Court's former judge Justice R.V. Easwar is chairman of the panel.
 
"The panel will also suggest alternatives and modifications to bring about predictability and certainty in tax laws without impacting the tax base and revenue collection," the statement said.
 
The committee has been given one year to submit its report from the date of its constitution.
 
The other nine members are former law secretary V.K. Bhasin, chartered accountants Vinod Jain and Mukesh Patel, consultants Rajiv Memani and Ajay Bahl, senior advocate Ravi Gupta, investment adviser Pradip P. Shah and Indian Revenue Service officers Arvind Modi and Vinay Kumar Singh.
 
"The committee will put its draft recommendations in the public domain and formalize them after consultations with stakeholders. The first set of recommendations will be submitted by January 31, 2016."
 

Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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Finance minister launches 'e-Sahyog' project

The project aims to reduce the need for the taxpayer to physically appear before tax authorities

 

Union Finance Minister Arun Jaitley on Tuesday launched the 'e-Sahyog' pilot project of income tax department which aims to reduce the need for the taxpayer to physically appear before tax authorities, an official statement said.
 
"The 'e-Sahyog' project launched on a pilot basis is aimed at reducing compliance cost, especially for small taxpayers. The objective of the project is to provide an online mechanism to resolve mismatches in income tax returns of those assesses whose returns have been selected for scrutiny, without visiting the income tax office," said a finance ministry statement.
 
Under this initiative, the department will provide an end to end e-service using SMS, e-mails to inform the tax assesses of the mismatch.
 
"The taxpayers will simply need to visit the e-filing portal and log in with their user ID and password to view mismatch related information and submit online response on the issue," it said.
 
"The responses submitted online by the taxpayers will be processed and if the response and other information are found satisfactory as per automated closure rules, the issue will be treated as closed. The taxpayers can check the updated status by logging in to the e-filing portal," the statement added.
 
The finance minister also inaugurated a drive to provide public service at peoples' door step by holding special PAN camps in remote areas.
 
Under this campaign, special PAN camps will be held over two days at 43 remote, semi urban and rural locations across India in the first instance to facilitate obtaining of PAN card by persons residing in such areas.
 
Jaitley also interacted with applicants and officials at seven of these camps through a video conference.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

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