Central Govt. setup a Committee to simplify the provisions of the Income Tax Rules

Central Govt. setup a Committee to simplify the provisions of the Income Tax Rules

Government Sets-Up A Committee to Simplify The Provisions of The Income Tax Act, 1961

The Government of India has constituted a Committee with a view to simplify the provisions of the Income Tax Act, 1961, with the following composition:

(i) Justice R.V. Easwar, (Retd.), former Judge, Delhi High Court and former President, ITAT – Chairman

(ii) Shri V.K. Bhasin, former Law Secretary – Member

(iii) Shri Vinod Jain, Chartered Accountant – Member

(iv) Shri Rajiv Memani, Consultant – Member

(v) Shri Ravi Gupta, Sr. Advocate – Member

(vi) Shri Mukesh Patel, Tax-Advocate – Member

(vii) Shri Ajay Bahl, Consultant – Member

(viii) Shri Pradip P. Shah, Investment Adviser – Member

(ix) Shri Arvind Modi, IRS (IT:81009) – Member

(x) Dr. Vinay Kumar Singh, IRS (IT:95006) – Member

The Terms of Reference (ToR) of the Committee shall be as follows:

i) To study and identify the provisions/phrases in the Act which are leading to litigation due to different interpretations;

ii) To study and identify the provisions which are impacting the ease of doing business;

iii) To study and identify the areas and provisions of the Act for simplification in the light of the existing jurisprudence;

iv) To suggest alternatives and modifications to the existing provisions and areas so identified to bring about predictability and certainty in tax laws without substantial impact on the tax base and revenue collection; and

The Committee shall set its own procedures for regulating its work. The Committee can also work in Sub-Groups and the draft prepared by the Sub-Groups can then be approved by the whole Committee. The Committee will put its draft recommendations in the public domain. After stakeholder consultations, the Committee will formalise its recommendations. The Committee can give its recommendations in batches. The First Batch containing as many recommendations as possible shall be submitted by 31st January, 2016.

The Term of the Committee shall be for a period of one year from the date of its constitution.

Source: PIB News

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Gratuity limit up to Rs 10 lakh.

   In a major relief to salaried class in the private sector, the government on Thursday cleared a proposal to raise the Income Tax (I-T) ceiling for payment of gratuity from the existing limit of Rs 3.5 lakh to Rs 10 lakh.

   This decision was taken at a Cabinet meeting chaired by the Prime Minister.

   “The Cabinet decided to amend the Payment of Gratuity Act, 1972 to enhance the gratuity limit for employees working in the private sector with no tax liability,” highly placed sources told Deccan Herald, which had earlier reported about the move. This decision of the Cabinet will bring parity between government and private sector employees in enjoying equal gratuity benefits. The government will introduce the necessary legislation for amending the Payment of Gratuity Act to enhance the gratuity limit during the ongoing Budget session of Parliament, sources said.

   The Labour Ministry in its pre-Budget consultation with the Finance Ministry had proposed to raise the Income Tax exemption limit for gratuity funds up to Rs 10 lakh for both government as well as private employees. The Sixth Pay Commission in its report had recommended hiking the ceiling of Rs 3.5 lakh on gratuity funds to Rs 10 lakh for government employees.

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Grant of Medical Facilities to dependent relatives — Raising the income ceiling.

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

(RAILWAY BOARD)

No.2010/H-1/2/21                           Date: 07.06.2011

The General Managers,
All Zonal Railways/PUs.

Sub: - Grant of Medical Facilities to dependent relatives — Raising the income ceiling.

   Consequent upon implementation of Govt’s decision on the recommendations of the Sixth Central Pay Commission regarding revision of minimum family pension to Rs 3500/-, it has been decided that a dependent relative in relation to a Railway servant as defined in para 601(6) of the Indian Railways Medical Manual, 2000 shall be considered eligible for entitlement of Medical facilities if his/her income does not exceed minimum pension/family pension i.e. Rs 3500/- and Dearness Relief thereon or 15% of the basic pay of the Railway Servant, whichever is more.

   2. Accordingly, in exercise of the powers conferred by the proviso to Article 309 of the Constitution, the President is pleased to direct that the proviso below Para 601(6) of the Indian Railway Medical Manual, 2000 may be amended as per 'Advance Correction Slip No. 12 enclosed.

   3. Please acknowledge receipt.

sd/-

(Dr. B.N Annigeri)

Executive Director Health (G)

Railway Board

Source; AIRF

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