A key Parliamentary Committee will adopt tomorrow the crucial report on Direct Taxes Code (DTC) Bill and recommend raising the income tax exemption limit to Rs 3 lakh from Rs 1.8 lakh at present. the Standing Committee on Finance, headed by former Finance Minister and senior BJP leader Yashwant Sinha, will discuss the final draft of the report on the DTC Bill during its day-long meeting tomorrow.

The Committee is of the opinion that the income tax exemption limit should be Rs 3 lakh. The Bill has the provision of raising the limit to Rs 2 lakh.

The committee, according to sources, wants the government to raise the income tax exemption limit in view of the near double-digit inflation which has eroded purchasing power of rupee.

Finance Minister Pranab Mukherjee had tabled the DTC Bill in Lok Sabha in August which was referred to the Standing Committee for scrutiny.

The draft report, prepared by the Committee, has suggested categorisation of the home and commercial property for the purpose of income tax. The income from these two sources should accorded different tax treatment.

It wants the government to incorporate provisions to prevent misuse of the facilities and tax relief provided to People of Indian Origin (PIOs). The DTC, which seeks to modernise the direct taxation system, will replace the Income Tax Act, 1961.

Although the government is unlikely to introduce the DTC from April 1, 2012, as planned earlier, it may incorporate some of the provisions of the proposed law in the Budget for 2012-13, to be unveiled on March 16.

More Under Income Tax

Posted Under

Category : Income Tax (27026)
Type : News (13503)

0 responses to “Income Tax Exemption Limit to be raised to Rs 3 lakh – Parliamentary Committee”

  1. Rakesh Pandey says:

    I feel that Income Tax exemption should be raised to Rs.3 Lacs. over and above  following should also be considered to increase:
    1. Principle repayment of housing loan should be given Rs. 1 Lac P.A in addition to existing permissible deduction u/s 80C of Rs. 1 Lac
    2. Interest on housing loan borrowed should also be increased  to Rs. 3 Lacs P.A.
    This is essential because inflation is near double digit ,which has badly affected the purchasing power.

  2. haribhai thakker says:

    tex lomit must be 300000 to 400000 for salarised person who can not save any incom in blak

  3. Dinesh K Agrawal says:

    WE WANT ;
    1.Exemption limit is required to be raised to 3lac for general
    2.It must be at least 3.5 lac for senior citizens
    3.Limits of deductions U/S 80C must be raised to 3 lac

  4. M. VENKATRAMAIAH says:

    It wud be very nice if the limit is increased to Rs.3 l from the present Rs.1.8 L. The Transportation allowance should also be incressed to a minimum of Rs.2000/- per month from the present Rs.800/- which was fixed about a decade back.

  5. Alim says:

    I think this suggestion is based on practical ground. Government should really respect the recommendation given by parliamentory committee.

  6. Senthil says:

    The IT limit if it is raised from 1.8 lacs to 3 lacs it wud reduce max assessees paying income tax where assessees can save an amount of in excess of Rs.10,000. Do u think the government is prepared to loose the revenue. I may strongly feel that the limit cud be raised to Rs.2 lac instead of Rs.3 lac, but it wud be very nice if it is raised to 3 lac.

  7. ramani says:

    The finance minister should allow the principal repayment of housing loan also for exemption as this amount is not available for use for the assessee. This can be restricted to only one house.

  8. Vijay Sathe says:

    This is what is to be happened earlier. Anyway if the DTC bill is passed it will again be as is where is . The limit of Housing loan interest is to be increase to 2 or 2.5 lacs as of now the rate of interest and inflation are in competitive base. Value of rupee is diminishing as of responding to the inflation. Again limit of 1 lac under 80 C is also not sufficient if that is increased to 2 or 3 lacs as that helps economy the flow liquidity by way of increasing saving habit of person.

  9. Vinay Dubey says:

    Incom Tax exemption limit should be 3lacks in budget 2012-13.

  10. Saeed Muhammad says:

    The reduction of maintenance allowance in house property income should also be kept at 30%; and not reduced to 20% as envisaged in the DTC. Those who made income projections (this can include low and high income brackets equally) based on 30% deduction will be affected. Government policy of widening the tax net without raising tax rates, or even reducing tax rates and thereby promoting greater compliance, to be applied in this aspect also.

  11. Pranav says:

    It is great.Govt. must have to raise the limit till 3 lacs

  12. Pranab Banerjee says:

    Is it possible to enhance the Standard Deduction from 1.80.000 to 3,00,000 ?from Fy 2012-2013 under DTC ?

Leave a Reply

Your email address will not be published. Required fields are marked *