Some experts are also expecting that the upcoming Budget 2022 will end the disparity in the tax treatment of annuity/pension schemes with other investment schemes.
'Retired employees in the Government and - currently pension/annuity products are taxed differently from other investment products such as fixed deposits, mutual funds and shares where only the gains are taxed and not the principal. In the case of annuity products if the pension is commuted, up to 60% of the corpus is considered as tax-free whereas in case the commutation option is not exercised entire pension amount is taxed. This is unequal treatment and in order to promote retirement planning this asymmetry in the treatment of genuine pension products should be removed and the principal portion of an annuity product even in absence of commutation should not be taxed,' Paras Nath, Partner, Tax & Regulatory Services at, T R Chadha & Co LLP, told FE Online.
Ritobrata Sarkar, Head of Retirement - India at WTW, said a further increase in NPS contribution from 10% to 14% of salary is anticipated.
'More options in terms of capital guarantee for NPS in the accumulation phase, as well as additional flexibility for drawdown options post-retirement, may go a long way in increasing attractiveness and take-up rates for NPS,' Sarkar said.budget 2022 expectations for retired employees and senior citizens: in view of the rising cost of living, retired employees and senior citizens have huge expectations from finance minister nirmala sitharaman's budget 2022 speech on february 1. several tax experts also feel it is high time to introduce new measures for the benefit of senior citizens and pensioners.in their pre-budget expectations, experts at Tax2Win said they are expecting an increase in the basic tax exemption limit for senior citizens to Rs 5 lakh. Currently, the basic exemption limit for senior citizens is Rs 3 lakh.
GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.
In other words,Goods and Service Tax (GST) is levied on the supply of goods and services. Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is a single domestic indirect tax law for the entire country.
Before the Goods and Services Tax could be introduced, the structure of indirect tax levy in India was as follows:
GST pattern of tax levy was
Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged. All the inter-state sales are chargeable to the Integrated GST.
Now, let us understand the definition of Goods and Service Tax, as mentioned above, in detail.
Multi-stage
An item goes through multiple change-of-hands along its supply chain: Starting from manufacture until the final sale to the consumer.
Let us consider the following stages:
Purchase of raw materials
Production or manufacture
Warehousing of finished goods
Selling to wholesalers
Sale of the product to the retailers
Selling to the end consumers
You must be logged in to post a comment.