Dear All
Gratuity, EL encashment, PF withdrawl and LIC etc all will be taxable if the New IT code come into effect. I had started a new thread requesting members to go through the new code and write their objections and reservations to FinMin which has invited public opinion on the New Code.
I am repeated my msg..... pls go through and take appropriate action....
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The New Income Tax code where the new slab of 10% tax upto 10 lakhs income is NOT as attractive as the headline says.
The gross income under new computation of income is much higher than the existing one for the same salary u r earning becaz, the non taxable allowance like HRA are taxable under the new regimn. In fact when I calculated my current salary under new formula I ended up with a IT liability of double of what I am paying now !!!
This new slab with this calculation procedure and other unknown formula is not beneficial to the salaried class. Honestly existing pattern is less taxing.
Under new code of tax:
HRA is taxable.
Interest paid on Housing loan is not exempted.
Medical reimbursement, LTA are taxable.
EPF, Leave encashment and gratuity when u retire are taxable.
There many more so. U will pay more tax when u earn and u will pay tax again when u retire !!!!
As usual, this Govt has come up with an idea to fool the whole salaried class.
They will get more direct tax under this 10% slab than what they are doing now.
Finance ministry has invited suggestion and comments to : [Login to view]
Pls rush yr reservations immediately so that Govt has a rethinking before implementing the New Code.
U may also ask yr company employees and other friends to send their reaction / reservations for the new to the id given.
Thanx
n. ramamurthy