In what could come as a relief on the tax front, the house panel on the DTC Bill has recommended hiking tax deductions.
This is the second review meeting that the Standing Committee has been conducting on the DTC Bill for the past several weeks, and what has been finalized in a sense is the additional tax set offs on certain expenditures that are available, reports Siddharth Zarabi, economic policy editor, CNBC-TV18.
Sources say at this stage that the recommendations of the committee is that the limit of Rs 1 lakh for personal savings under clause 69 be raised to Rs 1.5 lakh. Also, insurance expenditure including health insurance as well as school fees, the committee wants that to be increased to Rs 1 lakh from the proposed Rs 50,000, an additional deduction of Rs 20,000 for health insurance premium paid for dependent parents as well as Rs 50,000 for higher education expenditure. All this roughly works out to above Rs 3 lakh as a proposal.
Zarabi says that there were several other matters too which have been discussed by the committee. The moot point is that the speed at which the Yashwant Sinha-led panel is working at this stage, he reports. It could well be possible that a final report would be presented to the Finance Ministry during the budget session. Whether some of these clauses find their way into the Finance Minister's budget proposal is a big question at this stage, but one thing is for sure that with the Standing Committee moving at such a fast pace on this crucial reform, the Finance Ministry will be able to move ahead with a formal announcement as to when the DTC will finally come into play.
Source: CNBC-TV18 Comments
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