The purpose of this reform of making the change in tax regime is to encourage more number of private sector employees to go for pension security after retirement instead of withdrawing the entire money from the Provident Fund Account.
Based on Budget Speech in parliament the change in taxation with regard to EPF was interpreted to the effect that 60% of Employee subscription in EPF and PPF would be subjected to income tax
Announcing relief to small tax payers Shri Jaitley proposed to raise the ceiling of tax rebate U/s. 87A from Rs.2000 to Rs.5000. With this, individuals having income up to Rs.5 lakh will get a relief of Rs.3000 in their tax liability.
Common Tax Payer expects that basic income tax exemption limit be raised from Rs. 2.5 lakh and it should be linked to inflation and thereafter raised automatically every year
Income Tax department has issued clarifications on Redressal of Taxpayer grievances raised due to TDS mismatches
Assocham has asked the government to increase the personal income tax exemption limit in budget to Rs 4 lakh from Rs 2.5 lakh for all individual taxpayers.
Central Board of Direct Taxes announced Additional modes of generating Electronic Verification Code (EVC) in addition to EVC notified earlier to attract more income tax payers to file their income tax returns online
Allowances though paid under various names, income tax stipulates conditions for including those income as Salary.
Main provision for Salaried employees is Chapter VIA of Income Tax Act provides much needed exemption for savings and expenses mainly made by Salaried employees.
Income Tax Circular 20/2015 dated 02.12.2015 stipulates exemptions for certain income that are totally exempted from income tax and need not be included in Total Income
Persons in charge of disbursement of salaries are responsible for deducting Income Tax from salaries as per the procedure envisaged in Income Tax Circuar 20/2015
Finance Ministry has announced modified Annual Performance Appraisal Report (APAR) of the Assessing Officers of IT as well as Assistant Commissioners/Deputy Commissioners of Income Tax. In the revised format, the performance of the assessing officers will also be specifically measured for quality of assessment, the pace of disposal, and efforts made towards widening of tax base.