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Pre-budget discussion

CA Nikita (Chartered Accountant) (4158 Points)

17 January 2008

Hi everybody,

The budget coming up for the next financial year will surely bring in more tax changes and new concepts...

We all have witnessed the working of Mr. Finance Minister (P. Chidambaram) since the last few years...

Here i want to begin a discussion as to what likely are the changes that may come up and also as to what requires immediate attention in taxation area...

One such to be amendment :

The standard deduction may rise to Rs. 1.2 lakhs from Rs. 1.00 Lakh (Sec-80C)

Looking forward for your views..

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8 Replies

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 17 January 2008

Sorry to point out nikita that deduction u/s 80 C is not a standard Deduction... Nikita standard deduction is u/s 16(a) which is already nullified. (Nullified mean section is exist but provision is not exist) . But still yar good topic . I bel Deduction u/s 80 C will be increased by Rs. 50,000 and tax free amount will be Rs. 1,50,000 .Wats your opinion

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CA Nikita (Chartered Accountant) (4158 Points)
Replied 18 January 2008

hello Mr. Daga,

Its true as to what u have pointed out but let me give you the latest news.. even sec-80C deduction are now referred to as standard deduction.. anyways being an auditor urself its an indispensible part-to find faults :)

lets carry fwd the discussion in a more fruitful manner...

CA Nikita (Chartered Accountant) (4158 Points)
Replied 18 January 2008

Also in service tax we can expect an increase in taxable services.. around 12 more services will come in the ambit..

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 18 January 2008

Hahahahahha Again sorry to spoint out nikita that Sec. 80 C stil is a part of Chapter VI of income tax act, 1961...(Standard deductions are those deduction which you will deduct from the net amount and Chapter VI deduction you will get only when you invest acc to the prov.) So i am sorry to say.. but still good try and you know i dont have any experiance in the audit i am doing the valuation fo pvt company...but still yar thode se knowledge hai...wateverr.. But for service tax no idea yar i am good in income tax companies act mafa or as..but i like it

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 21 January 2008

Hey nikita no response

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Irshad (Article) (1426 Points)
Replied 22 January 2008

I think instead of raising the deductions available under 80C,it would be better if the basic exemption limit is raised from 1L to 1.5L owing to the Buoyancy in the tax collections..

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 23 January 2008

yar even i bel they raised exemption limit upto 1.5 lacs as well as increase the exemption of 80c also ...

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 23 January 2008

How the department is going to ensure the same effectivenes with which they collect tax from salaried class with other class of assessees is the most important issue to be debated.