The entities who opt for the scheme have to pay a requisite tax following which all litigation against them are closed by the tax department and penal proceedings dropped.
Budget 2021: Time limit to reopen an assessment case would to be reduced to three years from the current six years
To meet Covid-19 vaccine related costs, the finance minister could introduce a corona tax, HDFC Securities said
The budget document states, "It is proposed to provide a combined upper limit of seven lakh and fifty thousand rupees in respect of employer's contribution in a year to NPS, superannuation fund and recognised provident fund and any excess contribution is proposed to be taxable. Consequently, it is also proposed that any annual accretion by way of interest, dividend or any other amount of similar nature during the previous year to the balance at the credit of the fund or scheme may be treated as perquisite to the extent it relates to the employer's contribution which is included in total income."
Budget 2020 Income Tax Slabs: Niti Aayog Vice Chairman Rajiv Kumar exuded confidence that the middle class's propensity to save will not come down.
2020 Income Tax Slab: Finance Minister Nirmala Sitharaman used an example to explain the difference in tax liability for a person not claiming any exemptions. "A person earning Rs 15 lakh in a year and not availing any deductions etc will pay only Rs 1,95,000 as compared to Rs 2,73,000 in the old regime," she said.
"The new provision is not intended to tax Indian citizens who are bonafide workers in other countries. In some section of the media, the new provision is being interpreted to create an impression that those Indians who are bonafide workers in other countries, including in Middle East, and who are not liable to tax in these countries will be taxed in India on the income that they have earned there. This interpretation is not correct," the press release further noted.
"Those (earlier) estimates have been revised in the budget and our new target would be about Rs 11.80 lakh crore, which I am pretty confident that we will achieve," the CBDT Chairman told PTI in a post-budget interview.
"In order to widen and deepen the tax net, it is proposed to provide that e-commerce operator shall deduct TDS on all payments or credits to e-commerce participants at the rate of 1 per cent in PAN/Aadhaar cases and 5 per cent in non-PAN/Aadhaar cases," said Finance Minister Nirmala Sitharaman on Saturday.
Any contribution by employers towards these social security schemes beyond Rs 7.5 lakh per annum would be treated as perquisite of the employee and taxed accordingly.
The measures, announced by Finance Minister Nirmala Sitharaman in her 2020-21 budget, come amid criticism from some companies that India has increasingly resorted to protectionist rules that discriminate against foreign companies.
New Tax Slab: Every year, speculations on major income tax changes in Union Budget - potentially sending more money to the pockets of the common man - drive investment decisions for many individuals, say financial planners.
Union Budget 2020: From changes in income tax rates to the reintroduction of standard deduction and a higher income threshold for rebate, the government has made a few changes in the income tax rules over the past few years.
Union Budget 2020: Finance Minister Nirmala Sitharaman will present the first full-year Union Budget of Prime Minister Narendra Modi's government in Parliament on February 1.