raise the basic exemption limit to Rs 300,000 from its current level of Rs 250,000," says Surabhi Marwah.

By Surabhi Marwah

The upcoming budget will be a very crucial  ..

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This year, in order to foster a feeling of involvement and infuse more transparency into the budget-making process, the government has launched a forum called "People as Partners". This is a platform for the common man to provide his suggestions for the upcoming budget. Also, we all know that simplicity and transparency go hand in hand, therefore, the government has also set up a special committee led by Justice R.V Easwar (Retd.) to simplify the provisions of the Income-tax Act, 1961 ('Act' .. 

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Budget 2016: Tax Incentives To Give Major Push For E-Payments

New Delhi: Finance Minister Arun Jaitley is likely to introduce tax benefits for e-payments in this year’s Budget following recommendations made by the Payments Council of India (PCI).

Finance Minister Arun Jaitley is likely to introduce tax benefits for e-payments in this year’s Budget.

“We are extremely confident that in this year’s Budget, merchants and customers will get a major incentive from the government for digital transactions. This government is very serious about the Digital India push,” said Paresh Rajde, managing director of Suvidhaa Infoserv and a member of the PCI committee that formulated the recommendations.

In the submission to the ministry in December, the Payments Council of India said, “To incentivise players in the market to operate payment gateway systems and also to ensure capital for investment in further development of such solutions, we recommend offering tax incentives/tax holidays to such businesses.”

The government said in one of its communications to the council that merchants with more than 50% of their transactions done digitally could get a tax rebate or a 1-2% reduction in value-added tax on all electronic transactions. Consumers could get some income tax rebates if they showed a certain portion of their net expenses was incurred digitally.

The government also plans to do away with the convenience fee charged for online utility bill payments. “Payments companies are helping in the process of financial inclusion, but our business works on thin margins and longer gestation periods, hence we should be treated at par with infrastructure companies and the government should look into the tax issues we are facing,” said Naveen Surya, chairman of PCI.

The committee also recommended that the government look into the matter of tax deducted at source, which blocks working capital for payment aggregators. “We have to pay a hefty fee to the acquiring bank for every transaction and the margin for our trade is very thin. Often, because of TDS, we have to pay the government from our own pockets because we are not profitmaking and by the time the returns come, my business is already in the doldrums,” said Ketan Doshi, managing director of PayPoint India.

Rajde said that for India to realise the dream of digitisation, doing electronic transactions is important. “We have seen the Korea model where they shifted from a cash-heavy society to digital. This was achieved through incentivisation,” he said.

Claiming of medical expenditure for tax purposes made easy

Claiming of medical expenditure for tax purposes made easy

 October 15, 2015  Maha  Tax, TAX PURPOSE Edit Post

Claiming of medical expenditure for tax purposes made easy

One of the pillars of the of the taxation proposals included in the Finance Minister’s Budget Speech for 2015-16 was extension of benefits to the middle class. In this process, the Finance Minister announced extension of certain benefits in respect of medical treatment under section 80DDB. This section allows a deduction for expenditure incurred on treatment of specified ailments.

Taking the process forward, Central Board of Direct Taxes (CBDT) has issued a Notification vide S.O. No.2791 (E) on 12th October 2015 amending Rule 11DD. The amended Rule relaxes the condition of obtaining the certificate for claiming expenditure under section 80DDB in respect of specified ailments from a specialist working in a Government hospital. As per amended Rule 11DD, the prescription can be issued by any specialist mentioned in the amended Rule. Henceforth, it will not be mandatory to obtain a certificate from a specialist working in a Government hospital.

The Notification is available on the website of the Income Tax Department www.incometaxindia.gov.in .

Source : www.Cgepn.in