Union Cabinet approved Direct Tax Code (DTC)

Direct Tax Code gets nod

Paving the way for radical reform and simplification in the Direct Tax system the Union Cabinet on Thursday approved the much-talked about Direct Tax Code (DTC) Bill proposing to provide more Income Tax relief to salaried class.

The DTC Bill, which seeks to replace the archaic Income Tax Act, 1961, proposes to raise the Income Tax exemption limit from existing Rs 1.6 lakh to Rs Two lakh, highly placed sources said. The Income Tax exemption limit for senior citizens is proposed to be raised to Rs 2.5 lakh.

Under the moderate tax slab suggested in the DTC Bill the government proposes tax rate of
10 per cent for income between Rs 2 lakh and Rs 5 lakh,
20 per cent for income between Rs 5 lakh -
Rs 10 lakh and 30 per cent for income over Rs 10 lakh.
Currently the Income Tax rate is 10 per cent on income above Rs 1.6 lakh and upto Rs 5 lakh, 20 per cent on income above Rs 5 lakh and upto Rs 8 lakh and 30 per cent on income above Rs 8 lakh.

The first draft of the DTC bill had suggested
10 per cent tax on income between Rs 1.60 lakh and Rs 10 lakh,
20 per cent on income between Rs 10 and Rs 25 lakh and
30 per cent beyond that.

The DTC Bill proposes to levy Corporate Tax at 30 per cent and there will be no cess and surcharge on it, sources said. The DTC Bill will be introduced in the ongoing Monsoon session of Parliament.

The Cabinet at its hour-long meeting chaired by the Prime Minister discussed at length various provisions of the DTC Bill, which will seek to bring about radical reforms and simplification in direct tax structure including the Income Tax rates and exemptions.

The overall thrust of the DTC Bill will be on bringing about simplification of direct tax system including personal Income Tax and Corporate Tax with “an in-built bias” in favour of moderation of tax rates, sources close to the preparation of draft legislation said.

Provisions of the DTC Bill stipulating the tax rates in direct tax front including Income tax and Corporate Tax will come into effect once it the legislation is approved by both houses of Parliament.

The government plans to implement various provisions of the DTC Bill with effect from April One 2011.

It is learnt that the government is likely to introduce the DTC Bill either tomorrow or next Monday in both houses of Parliament. After its introduction the draft DTC will be sent to Select Committee of both houses for scrutiny.

After examining the recommendations of the Select Committee the government will move the DTC Bill for approval of Parliament in the Winter Session.

Later, talking to newspersons, the Finance Minister Pranab Mukherjee said, “The whole objective is that a plethora of exemptions will be limited. (Income) tax slabs will be three. Rate of taxes will be taken in the schedule so that they need not be changed every year,” he said. The Finance Ministry submitted the draft DTC Bill for consideration of the Cabinet after examining responses from various stake holders including trade, industry and corporate sector.

Source: Deccan Herald

CENTRAL SECTOR SCHEME FOR INTEREST SUBSIDY ON EDUCATIONAL LOANS

PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
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CENTRAL SECTOR SCHEME FOR INTEREST SUBSIDY ON EDUCATIONAL LOANS

New Delhi: August 18, 2010

The Central Government has launched a new Central Scheme to provide full interest subsidy during the period of moratorium on educational loans for students belonging to economically weaker sections (with parental family income from all sources of less than Rs.4.5 lakh annually) from scheduled banks under the Educational Loan Scheme of the Indian Banks’ Association (IBA) for pursuing courses of studies in professional/technical streams from recognized institutions in India.

The Scheme is effective for all IBA approved educational loans sanctioned to eligible students in respect of courses of studies in technical and professional streams from recognized institutions in India, from the academic year 2009-10. This Scheme is an overlay of the existing IBA Education Loan Scheme.

The modalities have been finalized in consultation with the Indian Banks’ Association and circulated to all member banks for implementation. Under the Scheme, proof of income is required to be certified by authorities to be designated by the State Governments. Accordingly, the Ministry has written to all Chief Secretaries of States/Union Territories to intimate the designated authority / authorities (at the District/Sub-District/Block, etc. levels) to the District Level Consultative Committee (DLCC) so that banking authorities at the branch level where students would be approaching for availing the benefit of the scheme would be aware of the same.

Eligible students who wish to avail of the benefits of the Scheme can approach the respective bank branch from where they availed of the education loan and complete the necessary formalities including obtaining the certification in respect of annual family income from the competent authority at the Block/Tehsil/District Level, so that the individual student accounts could be credited with the interest due on the loan for the academic year 2009-10 onwards.

Canara Bank is the nodal Bank, for the member Banks of IBA, for claiming reimbursement of interest credited to student accounts.

The details of the Scheme as well as the above communications are available on the website of this Ministry at www.education.nic.in. The Scheme is effective from 1.4.2009.

Source: PIB

Interest bearing advances/Sixth Central Pay Commission recommendation on House Building Advance-enhancement in past cases-regarding

No.I-17011/2(1)/2009-H.III
Government of India
Ministry of Urban Development
(Housing -III section)
*****

Nirman Bhawan, New Delhi.
Dated:- the 14th July, 2010

OFFICE MEMORANDUM

Subject:     Interest bearing advances/Sixth Central Pay Commission recommendation on House Building Advance-enhancement in past cases-regarding.

       The undersigned is directed to invite attention to this Ministry's O.M. No.I-17011/2(1)/2009-H.III dated 27th November, 2008 on the above subject and to say that it has been decided in consultations with Ministry of Finance to make the afore-said orders applicable with effect from 1st January, 2006. Accordingly, an enhancement of House Building Advance, if applied for, may be granted for an amount equivalent to the difference between the previously sanctioned amount and the new amount determined on the basis of pay in the pay band, in past cases, where HBA was sanctioned on or after 1-1-2006 but before 27-11-2008 subject to complying following conditions:-

(a)       The Government servant should not have drawn the entire amount of HBA sanctioned under earlier orders and /or where construction is not completed/full cost towards acquisition of house/flat is yet to be paid.

(b)       There will be no deviation from the approved plan of construction on the basis of which the original sanction of House Building Advacne was accorded. The revised cost of the original plan can, however, be considered for determining the additional amount, subject to the prescribed maximum limits.

(c)       Supplementary Mortgage Deed, Personal Bond and Sureties will be drawn and executed at the expense of the loanee.

(d)       The actual entitlement will be restricted to the repaying capacity computed on the basis of the formula laid down in this Ministry's O.M. No.I-17015/16/92-H.III. dated 17.10.2000. It should be ensured that the entire amount of advance with interest is recovered before retirement of the Government servant.

(e)      Rate of Interest: The rate of interest chargeable in such cases would be as per the slab applicable to the total sanctioned amount i.e. amount already sanctioned on or after 1-1-2006 but before 27.11.2008 plus the enhanced sanction. However, the new rate of interest would be chargeable only on collective amount that would remain outstanding on grant of enhancement so granted. Thus, the amount of HBA that has already been re-paid on old rates will not attract the fresh interest charges.

2.      However, the existing limit of maximum admissible amount of Rs.7.50 lakh for the purpose of construction/purchase of new house/flat and Rs.1.80 lakh would remain unchanged. In other words, the sum total of previously sanctioned HBA and the enhancement granted under these orders cannot exceed the aforesaid limits. In any case, not more than one enhancement is admissible to a Govt. employee.

3.       The applications for enhanced HBA should be submitted within six months from the date of issue of this order.

4.      Ministries/Departments whose branch offices are situated in the far flung areas like in case of Ministry of Defence, etc., are advised to give wider publicity to these orders through modern communication mean like facimile e-mail, web-sites etc. so that there is no occassion for any representation for extending the time limits of six months on the grounds of receiving these orders late.

s/d
(V.K. Gupta)
Deputy Financial Adviser

Facilities for Physically Challenged Passengers at Railway Stations

Facilities for Physically Challenged Passengers at Railway Stations

There are more than 8000 railway stations on Indian Railways with approximately 14,700 platforms. Based on the passenger earnings, these stations are categorized as ‘A-1’, ‘A’, ‘B’, ‘C’, ‘D’, ‘E’ and ‘F’ category. Facilities for physically handicapped passengers at stations are provided in terms of short term and long term facilities. Short term facilities are available at most of the ‘A-1’, ‘A’ and ‘B’ category stations which deal with approximately 75 per cent of passenger traffic. Items under short term facilities are as under:-

I. Provision of standard ramp with railing for barrier free entry.
II. Earmarking at least one parking lot for two vehicles used by physically challenged persons.
III. Provision of a non-slippery walkway from parking lot to building.
IV. Provision of signages of appropriate visibility.
V. Provision of at least one drinking water tap suitable for use by a disabled person.
VI. Provision of at least one toilet on the ground floor.
VII. ‘May I help You’ Booth.

Long Term Facilities comprise arrangements for inter platform transfer and engraving on edges of platform. Arrangements for inter platform transfer is available at most of the ‘A-1’, ‘A’ and ‘B’ category stations. These facilities are planned to be provided progressively at remaining stations after provision of short term facilities.

It is planned to provide 100 escalators at 50 important railway stations and other places of religious, historical and tourists importance.

Indian Railways are manufacturing passenger coaches with special designed compartment and European toilet pans adapted to the need of physically challenged passengers/senior citizens. Public conveniences in the form of toilets for physically challenged passengers/senior citizens are available at most of the ‘A-1’, ‘A’ and ‘B’ category stations.

This information was given by the Minister of State for Railways, Shri E. Ahamed in a written reply in Rajya Sabha today.

Source: PIB