Tax Exemptions News

Budget 2020 gives Income Tax payers the option to choose a lower tax regime if they give up all tax exemptions. Leaving aside the debate over whether the new tax regime reduces taxes, the very idea of removing exemptions is bad economics. Tax exemptions are an important policy tool for the government to nudge citizens to adopt economically significant habits, especially that of saving. This savings pool is crucial for both government and private investment. Exemptions can also be used to stimulate particular sectors of the economy, such as housing or medical insurance.

The finance minister says the government intends to remove all I-T exemptions in the long run

EET stands for exempt-exempt-taxable where an investor can receive two exemptions on investmentsThe last exempt implies that lump sum amount received at the time maturity or withdrawal is tax-free

While calculating tax liability, exempt incomes are the first components that get reduced from your salary or other incomeYou can claim a deduction by making investments in specified products or by incurring certain expenses under different income tax sections

The government has eased for startups the process to seek tax exemptions on angel investments

Chinese goods entering India in guise of 'gifts' via couriers by misusing e-commerce norms, say officials

Tax benefits, in the context of investments, show what the government wants to prioritise

Unlike market-linked instruments such as mutual funds, you can be fairly certain about the returns from a fixed deposit (FD)

Whether income from other sources is exempt or taxable, you must disclose it in the income tax returns

ICC suffered a revenue shortfall after the India refused to exempt the 2016 World Twenty20 competition held in the country and there has not been any change in that stance