A Comment on Advance tax liability of individuals more burdensome due to Budget 2016

My Comment on an article "Budget 2016 ups tax compliance burden on individuals: advance tax due 3 months earlier now" published in the economictimes.com Dated 10/03/2016 at 10:20 pm.


"Now, FM has introduced more strict compliance regarding Advance Tax payments of individuals at par with the companies. 

So, one should estimate his tax liability for the whole year in advance by 15th June itself and pay 1st instalment of tax at the rate of 15% of total tax on 15th June, 2nd instalment @45% on 15th September and 3rd instalment @75% on 15th December and final instalment of remaining tax on 15th March. 

Otherwise, interest on tax will be imposed at the rate of 1% per month for each default. 

So, we should be more careful now and deposit the advance tax on prescribed dates without failure to avoid levy of interest."

A Comment on FM's withdrawal of the proposal to tax EPF

My Comment on an article "Budget 2016: FM Arun Jaitley rolls back proposal to tax EPF" published in the economictimes.com Dated 08/03/2016 at 10 pm.


"Good action taken by the FM by conceding to the demands of the people in withdrawing the tax proposal. 

Now, members of EPF can withdraw their funds entirely without having to pay any tax. 

NPS contributors have got a rebate of no tax upto 40% withdrawals from their pension funds, which will be a benefit to them from April 2016. 

Further, the FM has withdrawn the proposal to impose tax on Employer Contribution exceeding 1.50 lac per annum which is also a relief to EPF subscribers.

Even if FM comes back later after more better review of the implications, with a proposal to tax the present period interest withdrawals, we may not feel sad."

A Clarification regarding taxation of PPF and EPF withdrawals

My Comment on an article "Budget 2016: PPF stays on exemption list, only EPF interest to attract tax" published in the economictimes.com on 01/03/2016 at 10:25 pm.


"Now, they have cleared the doubt. 

It was very ambiguous at the early hours of Budget release today, when they announced that 60% of PPF and EPF withdrawals will be taxed. It implied that principal amount is going to be taxed. 

Now, it is clarified by Revenue Secretary that only interest withdrawal will be taxed. So, it can be acceptable to some extent. 

And, they have further clarified now, that if same interest amount is further invested into annuity schemes, then, they will not be taxed at all. That will be a good option open."

A Comment on deductions towards HRA and levying of tax on old age benefit withdrawals

My Comment on an article "Budget 2016: How FM Arun Jaitley has affected common man's spending & savings plan" published in economictimes.com Dated 01/03/2016 at 6 pm.


"The raising of the deduction limit allowed under section 80GG towards house rent paid 
from Rs.24,000 to Rs.60,000 is a very good move taken by FM. This implies that a person can enjoy a rented accommodation of Rs.5,000 per month which is a bit reasonable from the vision of common man. 

But, the deduction of tax introduced on PPF and EPF withdrawals against contributions made after 2016, is an injustice as the EPF is the only source of funds during one's old age life. Allowing only 40% drawal and taxing the rest amount is a kind of blow to the common man which will leave him insecure as he can't meet his expenses. FM should reconsider this."

A Comment on Budget 2016 implications on salaried people

My Comment on an article "Budget 2016: Eight takeaways for individual taxpayers" published in the economictimes.com Dated 01/03/2016 at 5:45 pm.


"New sops given to salaried class tax payers in this budget include an additional tax rebate of Rs.3,000. So, the total rebate now allowed is 5,000. This means that a person drawing salary of Rs.5,00,000 in a year is not incurring any tax liability at all. Those drawing above 5 lacs also get this tax rebate of Rs.5,000 from their dues. 

Another concession offered for salaried person is the deduction of 50,000 extra towards new house purchase in addition to the existing allowance of 1,50,000. But, this Rs.50,000 is allowed only if the house value is below Rs.50 lacs and on a loan upto Rs.35,00,000 only. 

I think, this allowance getting limited to only Rs.35 lac loan is not sufficient and it should be raised to a loan of upto 40 lacs as most people require to take loans upto 80% of house value."