Wednesday, January 10, 2018

DEDUCTION OF TAX AT SOURCE

DEDUCTION OF TAX AT SOURCE

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Budget 2018 may bring cheer to middle class, tax exemption limit could be hiked

In the upcoming Budget, the Modi government could also lower the tax rate by 10 per cent on income between Rs 5-10 lakh.

Middle class can hope for a big relief in 2018-19 Budget, which will also be the last regular Budget of the NDA government, as the Finance Ministry is contemplating to hike personal tax exemption limit and tweak the tax slabs, according to sources.

The proposal before the ministry is to hike the tax exemption limit from the existing Rs 2.5 lakh per annum to at least Rs 3 lakh if not 5 lakh, sources said.

Besides, the tinkering of tax slab is also being actively considered by the ministry to give substantial relief to middle-income group, especially the salaried class, to help them tide over the impact of retail inflation, which has started inching up.

In the last Budget, Finance Minister Arun Jaitley left the tax slabs unchanged but gave marginal relief to small tax payers by reducing the rate from 10 per cent to 5 per cent for individuals having annual income between Rs 2.5-5 lakh.

In the next Budget to be unveiled on February 1, the government could lower the tax rate by 10 per cent on income between Rs 5-10 lakh, levy 20 per cent rate for income between Rs 10-20 lakh and 30 per cent for income beyond Rs 20 lakh. Currently, there is no tax slab for income between Rs 10-20 lakh.
COST OF LIVING HAS GONE UP
"Considering the steep rise in cost of living due to inflation, it is suggested that basic limit for exemption and other income slabs should be enhanced to give benefit to low income group. The income trigger for peak rate in other countries is significantly higher," industry chamber CII said in its pre-Budget memorandum to the Finance Ministry.
Although the industry chambers want the government to reduce peak tax slab to 25 per cent, it is unlikely that the ministry will agree to that due to pressure on fiscal deficit.
The subdued indirect tax collection following roll out of Goods and Services Tax from July 1 last year has put pressure on the fiscal deficit, which has been pegged at 3.2 per cent of the GDP for 2017-18.
The government recently raised borrowing target by additional Rs 50,000 crore for the current fiscal to meet the shortfall.
DEMONETISATION EFFECTS MAY LINGER
According to industry body FICCI, there is a likelihood that demonetisation effects may linger on for some more months and hence there is a need to further boost demand and therefore, the government should consider revision of income tax slabs by raising the income level on which peak tax rate would trigger.
"This would improve purchasing power and create additional demand. For individual taxpayers, 30 per cent tax rate should be applicable only if the income is above Rs 20 lakh. Additionally, interest rates should be lowered to enable affordable finance for conducting business operation and expansion," it said.
Among other things, chambers have suggested re-introduction of the standard deduction for salaried employees to at least Rs 1 lakh to ease the tax burden on them and keeping in mind the rate of inflation and purchasing power of the salaried individual, which is dependent on salary available for disbursement.
Standard deduction, which was available to the salaried individuals on their taxable income, was abolished with effect from assessment year 2006-07.

Orders on change of holiday - DOP Order

Withdrawal of empanelled hospitals from ECHS

GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
RAJYA SABHA

QUESTION NO 1450
ANSWERED ON 01.01.2018
Withdrawal of empanelled hospitals from ECHS

1450 Shri Rajeev Chandrasekhar

Will the Minister of DEFENCE be pleased to state :-

(a) whether empanelled hospitals in the ex-servicemen Contributory Health Scheme (ECHS) are withdrawing from the scheme;

(b) if so, the details thereof and the reasons therefor;

(c) whether Government has received complaints from ex-servicemen regarding non-admission of patients by hospitals demanding advance payments; and

(d) if so, the details thereof and the action taken by Government against such hospitals?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF DEFENCE
DR. SUBHASH BHAMRE

(a) & (b): Yes, Sir. 169 Hospitals have not signed / renewed Memorandum of Agreement for more than a period of one year due to following reasons:-

(i) Low CGHS rates.
(ii) No reply to queries raised by ECHS on medical bills which resulted in rejection of bills.

In addition to above, Medanta Hospital, Gurugram & Max Hospital, Delhi have withdrawn ECHS facilities w.e.f. 1st November 2017 & 1st December 2017 respectively. However, Max Hospital, Delhi resumed ECHS facilities later till 31st December 2017.

(c) & (d): Yes, Sir. Such complaints are resolved / sorted out by the intervention of ECHS officials. One case of such complaint is as under:

Complaint ID : 17128-892 (E).
Complainant : Raja Santosh, S/o Lt Col T. Raman (Retd), R/o Trichi (Tamil Nadu).
Date : 27th November 2017.
Against Hospital : Global Health City Hospital, Chennai.
Regional Centre : Chennai
Polyclinic : Chennai.

Source: Rajya Sabha

Fraud in linkage of Aadhaar with bank accounts and SIM cards

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
QUESTION NO 158
ANSWERED ON 02.01.2018

Fraud in linkage of Aadhaar with bank accounts and SIM cards

158 Shri Husain Dalwai

Will the Minister of FINANCE be pleased to state :-

(a) the details of complaints of bank frauds received where money was siphoned out in the name of linking Aadhaar with PAN/Bank Account/SIM card, since 2015, bank-wise, month-wise;

(b) whether any directives have been issued to banks to deal with such instances of bank fraud, if so, the details thereof, if not, the reasons therefor;

(c) whether a Grievance Redressal Mechanism has been put in place to deal with such instances, if so, the details thereof, if not, the reasons therefor; and

(d) the reasons due to which Government is mandating linkage of Aadhaar with bank accounts and SIM cards despite such incidents of misuse?

ANSWER

THE FINANCE MINISTER

(a) to (d): A Statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PART (a) to (d) OF RAJYA SABHA STARRED QUESTION NO. 158* FOR 2NDJANUARY, 2018 REGARDING “FRAUD IN LINKAGE OF AADHAAR WITH BANK ACCOUNTS AND SIM CARDS” TABLED BY SHRI HUSAIN DALWAI.

(a) and (b): The Department has received 20 complaintsof bank frauds involving Rs.7.65 lakhs connected with linking Aadhaar with bank accounts since 2015,as per details at Annexure.However, for customer protection, zero liability of a customer is assured vide Reserve Bank of India’s (RBI)circular dated 6th July, 2017in all cases of a third party breach where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system and the customer notifies the bank within three working days of receiving the communication from the bank regarding the unauthorized transaction.On being notified by the customer, the bank shall credit (shadow reversal) the amount involved in the unauthorized electronic transaction to the customer’s account within ten working days from the date of such notification by the customer.
Further, the guidelines inter-alia addresses the following areas for safeguarding the customers while handling the cases of unauthorized electronic banking transactions:

I. Strengthening of systems and procedures
II. Reporting of unauthorised transactions by customers to banks
III. Limited liability of a customer
IV. Reversal timeline for zero liability/ limited liability of customer
V. Board approved policy for customer protection
VI. Burden of proof on banks
VII. Reporting and monitoring requirements

(c): The Banks have their grievance redressal policy and internal Grievance Redressal Mechanism for resolution of grievances and customer complaints displayed on their respective websites. In case of alleged unauthorised transactions, the case is investigated and settled as per the Standard Operating Procedures (SOP).

Out of 1.26 lakh overall grievances, 1.20 lakh have been disposed of during the period 1st January, 2017 to 28th December, 2017, leading to a settlement percentage of95%.

(d):In terms of amendments to provisions of Prevention of Money Laundering – (Maintenance of Records) Rules, 2005 issued vide Gazette Notification G.S.R 538(E) dated June 1, 2017, it is mandatory to obtain Aadhaar for linking all bank accounts, insurance, pension, mutual funds and SIM cardsfor individuals who are eligible to enrol for Aadhaar.

Source: Rajya Sabha

15-01-2018 (Monday) : CLOSED HOLIDAY FOR ANDHRA PRADESH & TELANGANA CIRCLES

Pongal Bonus 2018 – TN Govt announces Pongal bonus for Govt Employees

Pongal Bonus 2018 – TN Govt announces Pongal bonus for Govt Employees

Tamil Nadu government announced Pongal Bonus for government employees, teachers and pensioners

“Group C and D staffs will get a bonus equal to 30 days salary with a ceiling of Rs 3,000”
Further, a bonus of Rs. 1000 will be paid to the following cadres of the state government employees:

Government also direct that the Bonus of Rs.1,000/- be paid to full-time and part-time employees paid from contingencies at fixed monthly rates, employees on consolidated pay/special time scale of pay including employees in Nutritious Meal Programme / Integrated Child Development Service (ICDS) Scheme (Anganwadi Workers /Mini Anganwadi Workers), Village Assistants, Panchayat Secretaries on special time scales of pay under Rural Development and Panchayat Raj Department, Contract employees, Temporary Assistants on contract basis, employees on daily wages and the employees partly worked on daily wages and subsequently brought under regular establishment and worked continuously for atleast 240 days or more during the accounting year 2016-17

G.O