The parliamentary standing committee on information technology that tabled its report on `Management of funds by department of posts through banking and insurance activities’ has strongly recommended an upward revision of the ceiling limit, in keeping with the proposal of the postal department. It has said that “a suitable increase in the limit would be a definite addition attracting more depositors in the post office savings scheme.”
Earlier, the postal department had requested the finance ministry to raise the existing deposit limit on which subscribers can avail tax-free interest. The finance ministry, in turn, took up the matter with Central Board of Direct Taxes (CBDT) and asked for increasing the current limit to Rs 3 lakh. However, CBDT has been opposing the demand by saying that the proposed move would cause revenue losses.
Making out a strong case for an upward revision of the current ceiling, the committee has said that such a move would stem the declining number of depositors in this scheme. In fact, the committee lashed out at the postal department and has asked it to take corrective measures to revive this scheme as the foremost investment option.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018