The Hindu Business Line : Review direct tax provisions: CII

TO widen the tax base and to garner more revenues from direct tax, the Confederation of Indian Industry (CII) has called for a review of the direct tax provisions relating to individuals.

In a statement the chamber has pointed out that with the rationalisation of the provisions of the indirect tax, the focus on revenue generation has shifted to direct taxes.

To augment revenues from direct taxation, the Union Budget 2002 should announce certain measures that would ensure voluntary compliance and widen the tax base. An important issue of achieving this is the need to strengthen the provision relating to issuing of the permanent account number (PAN).

Besides, the various deductions and allowances that are available now were fixed a long time back and need immediate revision. In the case of medical allowance, the chamber has pointed out that irrespective of the amount spent by an individual in medical treatment, the individual will get a tax rebate of a maximum of Rs 15,000 in a year. The chamber has pointed out that this is very low as compared to the current market price of health care services and should be increased to Rs 25,000.

On the issue of rebates available to individuals under Section 88 A of the Income-Tax Act, the chamber has suggested that the maximum amount to be invested in eligible securities should be from Rs 80,000 to Rs 1,00,000 per annum while the rebate available should increase from Rs 16,000 to Rs 20,000 per annum.

Referring to the deduction available under Section 80L to an individual or an HUF in respect of earnings from interest from investments, the chamber has said that the amount of Rs 9,000 was too low and should be raised.

Send this article to Friends by E-Mail

Stories in this Section
EU still wary of Indian bed linen

Operators seek BSNL backing for village phone obligation

`Budget must stall the slide'

CETMA expects high demand for DVD players

UNDP report calls for rethink on globalisation

Biscuit units call for excise reprieve

PM gives nod to APM dismantling

Govt may fix price cap on petro products post-APM

Subsidy on kerosene, LPG -- Can foot Rs 8,000 cr only, says Finance Ministry

`Patents for pharma companies must be dealt with cautiously'

Karnataka power supply cos' equity put at Rs 28.5 cr