Fire your tax related queries and i would get it solved!!!

[magnet]

Diosys sir do clarify what the stuff on tax will be ...

I mean stcg ...from what i read..stcg and ltcg wont exist and any sale of shares will be added as your income and will be tax according to the slab in which u fall....

Does that mean i can sell a stock today and still pay 10% on it..and even if i sell it say after a year and 3 months..and again i fall in 10% bracket than also pay tax on it...

And if its just 8 months away is it better to open ppf account for family heads who dont have it.. or they too will fall under eet regime after 15 years?

 

[vasa1]

Diosys sir do clarify what the stuff on tax will be ...

I mean stcg ...from what i read..stcg and ltcg wont exist and any sale of shares will be added as your income and will be tax according to the slab in which u fall....

Does that mean i can sell a stock today and still pay 10% on it..and even if i sell it say after a year and 3 months..and again i fall in 10% bracket than also pay tax on it...
....

While waiting for Diosys' answer, let me say what I understand:

Both STCG & LTCG remain. Both will be taxed at the marginal rate (for many folks it will be 10%). The difference being that for LTCG, you can increase the cost of acquisition by indexing.

 

[diosys]

Diosys sir do clarify what the stuff on tax will be ...

I mean stcg ...from what i read..stcg and ltcg wont exist and any sale of shares will be added as your income and will be tax according to the slab in which u fall....

Does that mean i can sell a stock today and still pay 10% on it..and even if i sell it say after a year and 3 months..and again i fall in 10% bracket than also pay tax on it...

And if its just 8 months away is it better to open ppf account for family heads who dont have it.. or they too will fall under eet regime after 15 years?

To tell the truth in plain and simple language....

I have not gone through the draft code compelety for two reasons...
1.) The government is good at producing draft codes but when it comes to giving out the final act they deliver it too late or sometimes never deliver anything near the draft code...In the case of companies bill it has got presented in the parliament 6 times since 2001 !!! but still not passed...

So i would wait and watch for the second draft (most probably it might come) for a reading....

2.) I am too busy with audit work presently (atleast till 30th Sept) to go through the same....

Therefore there is no point in talking about the draft code...I feel that they just might clarify that this act would aply from FY 2011-12 in which case we have a lot of time to read and understand the entire act and not just the capital gains portion....remember... THE DEEVIL IS ALWAYS IN THE DETAILS

Answering as per jurisprudence regarding your EET point....Any money which is deposited before the enactment of the act when withdrwan would NOT be taxable...simple....

 

[vasa1]

Diosys, beg to differ slightly. Since you are busy, you have to do what you have to do, but the rest of us can and should howl and scream about things we don't like from now itself .... :rofl:

 

[diosys]

Diosys, beg to differ slightly. Since you are busy, you have to do what you have to do, but the rest of us can and should howl and scream about things we don't like from now itself .... :rofl:

ha ha ha ha ha

I only hope you guys howl about the right things !!!

 

[magnet]

To tell the truth in plain and simple language....

I have not gone through the draft code compelety for two reasons...
1.) The government is good at producing draft codes but when it comes to giving out the final act they deliver it too late or sometimes never deliver anything near the draft code...In the case of companies bill it has got presented in the parliament 6 times since 2001 !!! but still not passed...

So i would wait and watch for the second draft (most probably it might come) for a reading....

2.) I am too busy with audit work presently (atleast till 30th Sept) to go through the same....

Therefore there is no point in talking about the draft code...I feel that they just might clarify that this act would aply from FY 2011-12 in which case we have a lot of time to read and understand the entire act and not just the capital gains portion....remember... THE DEEVIL IS ALWAYS IN THE DETAILS

Answering as per jurisprudence regarding your EET point....Any money which is deposited before the enactment of the act when withdrwan would NOT be taxable...simple....

Now even i am agreeing because.......earlier i thought this is just going to happen...but later came to know its a code and now government will wait for suggestions from respective feilds about their view

Also a tax consultant whose advice on idiot box i follow said.....dont worry or take this stuff seriously.....because a similar lovely stuff was shown in economic survey...and than we know what happened in budget.....

Was reading another article in newspaper which suggested if u follow the present draft code..ppl in 5 lakh to 10 lakh range will have to pay more taxes upto 56%(article has details about this..) from what they are paying now as house loan interest deduction gone away.....

http://www.dnaindia.com/money/report_simpler-tax-more-tax-for-middle-class_1282319

And EET is just that u deferring your tax payment....its not that ull get away.....on withdraw u will feel the shot

 

[diosys]

Now even i am agreeing because.......earlier i thought this is just going to happen...but later came to know its a code and now government will wait for suggestions from respective feilds about their view

Also a tax consultant whose advice on idiot box i follow said.....dont worry or take this stuff seriously.....because a similar lovely stuff was shown in economic survey...and than we know what happened in budget.....

Was reading another article in newspaper which suggested if u follow the present draft code..ppl in 5 lakh to 10 lakh range will have to pay more taxes upto 56%(article has details about this..) from what they are paying now as house loan interest deduction gone away.....

http://www.dnaindia.com/money/report_simpler-tax-more-tax-for-middle-class_1282319

And EET is just that u deferring your tax payment....its not that ull get away.....on withdraw u will feel the shot

This is exactly the reason why i tell people not to take "INFORMED" descisions based on half knowledge !!!

Just see how misleading is the comparison given by DNA....

1.) Medical Allowance - Medical Allowance was always taxable even if Re 1 is given as an allowance. What was exempt was medical re-imbursement. There is a difference between reimbursement and allowance. An allowance is given irrespective of the fact that whether the expense was incurred or not whereas reimbursement is given bill to bill....

2.) Deduction u/s 80C - This limit has been enhanced to Rs. 3,00,000 and not Rs. 1,00,000 as given

 

[vasa1]

This is exactly the reason why i tell people not to take "INFORMED" descisions based on half knowledge !!!....

The purpose of discussion / debate is to gain knowledge. The question of taking decisions does not arise at this point. This code is a draft which has been put in the public domain for feedback. That is a well-known fact. As you have pointed out, governments propose a lot but do little.

The one thing I appreciate is that the present FM fulfilled his claim made on Budget day of releasing the draft code in 45 days. Now it is up to the public to give their feedback and also to understand the potential implications.

Despite all the praise that the draft code has received mainly from the corporate world, many ambiguities have to be cleared.

The former FM's suggestion that things should not be compared to the old act is too facile.

You mentioned 80C. That is history. What is left for the Rs. 3,00,000 deduction seems to be of very little use to retirees but may benefit those at the start of their careers.

I hope analysis and debate of the proposals continue, if not here then somewhere!

 

[magnet]

T

2.) Deduction u/s 80C - This limit has been enhanced to Rs. 3,00,000 and not Rs. 1,00,000 as given

Sir in article its mentioned ...a person wont put 3 lakhs in the tax deduction if he earns between 5 to 10...lakhs...just an example taken by author to prove his point......

It says it will be same tax if 3 lakhs put......dont know how

Cant comment on medical stuff as i have least knowledge abt this stuff

Also read in dna money that ELSS peeps planning to give reply for them being not involved in deduction as they have 20k crore market every year

 

[diosys]

The purpose of discussion / debate is to gain knowledge. The question of taking decisions does not arise at this point. This code is a draft which has been put in the public domain for feedback. That is a well-known fact. As you have pointed out, governments propose a lot but do little.

The one thing I appreciate is that the present FM fulfilled his claim made on Budget day of releasing the draft code in 45 days. Now it is up to the public to give their feedback and also to understand the potential implications.

Despite all the praise that the draft code has received mainly from the corporate world, many ambiguities have to be cleared.

The former FM's suggestion that things should not be compared to the old act is too facile.

You mentioned 80C. That is history. What is left for the Rs. 3,00,000 deduction seems to be of very little use to retirees but may benefit those at the start of their careers.

I hope analysis and debate of the proposals continue, if not here then somewhere!

Dear Vasa....

I have no porblem with anyone discussing issues or the draft code here. What the newspapers reveal is what they are told to reveal and somethings which they should is hidden....

This code is being said to be progressive by the newspapers....How on earth can it be progressive when they have allowed the ITO to open the books of accounts to now upto 7 years back (presently limited to 4 years)....

Again, the example taken by DNA is wrong....I have so many assessee from different fields of life (retired, business, salary etc etc) and i can bet that about 80% of them easily have savings more than 2,00,000 which they can claim under current 80C.

The reason why the corporate world is happy is on two accounts....
1.) The present budget FBT has been abolised. A very correct move.
2.) Their rate of taxation has gone down...

Actually all the corporates have vested interest in the tax laws and have always twisted the acts in their favours or have got exemptions...Mainly if you see the companies in the sensex then most (may 90%) have got continuing exemptions...They need not worry...

What i meant earlier was that comparisons must be done in order to see that tax laws are equitable and progressive.

Merely seeing what was the tax rate then and now is of no use.

What the newspapers always do is to give a comparison between the above...They do not or never give comparison between the procedural aspects of the act (which i believe impacts everyone more)....