If reforms are increasing the basic limit of 106 lacs to higher level of 5 lacs or so then its worth all trouble. The lower income group is hit hard as lower limit (1.6 lacs)is not incresed but all exemptions are removed.It amount to increase of TAX only. Further taxing savings like PF PPF LIC etc shall make people "save" less hence government shall be in trouble like US over period of time.
Think a lot of hard work has gone into in desiging this one. While it brings to books all malifide practices persued by the CA's and various business Groups to put all personal expanses against their business like eating, home maintenance, change of furniture etc., Agriculture Income, Income from running small trading, small shops where there is no accounting system, black money circulating in the economy etc. Let us hope, it brings all fine things to make us a honest citizen.
We all know why US went into recession and took entire world with it. Unreasonable reality prices is the one prime factor for taking world into recession. Now when people earning goes down they loose job etc. These unreasonable reality price will fall and then people start selling there property. This result into recession. The new Tax code by not including house loan excemption saved country from continouse increase of house price. Price of housing will either go down or will remain constant for 4-5 years. This will save our country from big recession(job, bad working conditon etc).
The house loan also make people work like shit and because they need job to pay out of capacity emi, they are often exploited. This spoils work culture and kills innovation in that employee.
This should have been done atleast by 2005 but its better late then never.
Re: It is not that beneficial as projected
by Mahesh Parihar on Aug 19, 2009 09:47 AM
The new tax cannot increase unless your income is about 3 L and taking a full rebate on 1.5 lac home loan Please explain.
Re: It is not that beneficial as projected
by asad hgjkf on Aug 19, 2009 07:46 PM
i too will end up paying more tax if my saving pattern remains the same. ( I save 1 lakh every financial year for taxation purposes.)
Re: home loan benifit
by Guest on Aug 19, 2009 04:42 AM
If u want to buy a house just to save ur tax,then forget it as interest on borrowed capital will no longer be allowed to be claimed as deduction from income from House property under the proposed tax law.U can invest in investments such as PPF,NSC etc which can be claimed as dedn under sec 80C.But remember these investments will be taxable on withdrawl.
the new code will only benefit the higher income group and not the lower middle class.Govt. should resort the home loan exemption and pf exemption and raise the nontaxable limit to 3 lac.
Re: Re: New tax code\'s impact on your tax outgo
by vipin malaviya on Aug 19, 2009 03:29 PM
M K Gandhi said that when you want to think for the people of India, think from the basic man ( Poor people )ie. poor people should not be left in lurch. But the Govt. is thinking from the top most people ( rich people )
in simple its like show Rs.5 benefit and loot Rs.500. the new tax code seems it will suck salaried employee further. Instead of sucking poor/middle class people FM can think of pulling out his/colleagues money from swiss banks.
Re: EET and removing home loan benefit
by virat v on Aug 18, 2009 11:45 PM
agreed with rajesh. eet vl make all the withdrawals like from lic, ppf, etc. taxable.
ppl hv been just shown the rozy side of the code while hiding important aspect of it.
Re: Re: EET and removing home loan benefit
by asad hgjkf on Aug 19, 2009 07:48 PM
Sir, did Y0u work out the taxes? I did, and the new tax code is detrimental to the ppl earning less than 10 lakhs.
I hope that teh EET scheme would be applicable only on future invesments only. All old investments maturing after 01.04.2011 would be exempt from tax. Those retiring after this date will they have to pay tax on retirement benefits ?
