Latest articles on Life Insurance, Non-life Insurance, Mutual Funds, Bonds, Small Saving Schemes and Personal Finance to help you make well-informed money decisions.
Tax benefits should be made available for life, health, and education up to Rs 1 lakh. Insurance incurred on dependent seniors, not just parents but also grandparents, to the extent of Rs 50,000 should also be given tax benefits. The panel also felt the senior citizen age be reduced from 65 to 60. Meanwehile , BJP said that it would supoort government on DTC.
Committee sources said the GAAR provisions could apply to just about anyone, including a transaction like the controversial Vodafone-Hutchison merger where the Supreme Court recently set aside a Rs 11,000 crore tax demand on the ground that India lacked jurisdiction over a deal concluded in the tax haven of Cayman Islands. Committee felt provisions of DTC were skewed in favour of authorities while the assessee was disadvantaged as he was "guilty unless proven innocent". The panel has suggested that officials must prove that there is a case of avoidance and the assessee be allowed opportunities to argue his case.
An independent body with one judicial and two technical members could hear arguments put forward by an assesee who has to be heard by the dealing officer as well. If his arguments are rejected and a notice is served for tax avoidance, the assessee will be free to approach a regular court.
The draft report is also likely to suggest that the government fix a threshold to take up a tax avoidance case and also introduce strong checks to ensure that frivolous cases are not filed and assesses do not have to put up with undue harassment. The GAAR has attracted objections from several quarters although the government has argued that such rules are being implemented in several countries.
Follow us on our social media channels:
Copyright © 2024 Design and developed by Fintso. All Rights Reserved
+91 99410 68410
Industry News