srs_1 asks How VAT is helpful for a common man

Rustagi_ says VAT tends to reduce the price of commodities. The reduce price helps the consumers in their day to day purchases of goods and services.

yogesh.1977 asks Has section 10(10D) of the IT Act been removed from Life Insurance Products

Rustagi_ says The Finance Minister had announced a package of duty concession for textile industry in the last budget. He has exempted textile products from excise duty. This year he has extended to benefit of reduced custom's duty rate of 5% to many other textile machinery. He has also reduced the customs duty on certain other textile machinery from 15% to 5%. These concessions would help the textile industry to compete in the international market by producing textile products at low costs.

sureshmanikoth asks Under Sec 80 C will a tax payer be better off than what was received under Sec 88 a

Rustagi_ says The benefit announced by the Finance Minister is upto Rs. 1 Lakh in the savings. This is much more attractive then the existing benefit schemes under the personal Income Tax Law.

ankur6s asks DO i need to show proof of saving to get 1 lac saving deduction from taxable income?

Rustagi_ says This deduction is to be made from the taxable income. This relief to the tax payers is in due of the existing schemes of deduction including standard deduction.

armilu asks Don't you think the major gainer of the tax reforms in this budget are the high income category people because somebody earning Rs 3.5 and somebody earning 35 lac are in the same tax slab. Don’t you think its against the basic canon of taxation?

Rustagi_ says In the proposals announced by the Finance Minister the Income tax payers stand to gain in all taxable slabs. Those who are more or in any case to pay more tax as Income tax, the income tax rates are quite progressive in nature. Equity in taxation is also maintained in the structure announced by the FM.

nairrenjan asks The budget imposed 30% tax on allowances other than canteen and conveyance. In this respect if an employee's total taxable income doesn’t exceed 100000/- whether he has to pay any tax?

Rustagi_ says If a taxable income is within the exemption limit of Rs. 1 Lakh, no tax is payable.

sundarunix asks Does the tax scheme Rs.10 for withdrawn of Rs.10,000 on signle day apply to NRE accounts also?

Rustagi_ says The tax applies for cash withdrawals in respect of any kind of bank account. It is immaterial whether the money is withdrawn from the NRE account. The liability of tax is on the transaction of withdrawing more than Rs. 10,000 in cash from the banks on a single day.

sundarunix asks Does the tax scheme Rs.10 for withdrawn of Rs.10,000 on single day apply to NRE accounts also?

Rustagi_ says The tax applies for cash withdrawals in respect of any kind of bank account. It is immaterial whether the money is withdrawn from the NRE account. The liability of tax is on the transaction of withdrawing more than Rs. 10,000 in cash from the banks on a single day.

thk asks 100000 deduction allowed for persons with income of 7.5 lakhs ?

Rustagi_ says The deduction of 1 lakh is applicable to all category of tax payers.

arunskumar asks With the new tax slabs, we can clearly see that it benefits business class rather than salaried, because they can claim deductions for expenses and then offer the taxable income and still be taxed at lower rates, where as salaried class who were getting a

Rustagi_ says In the existing structure also the tax treatment for the two categories is different for business purpose the expenses can be claimed as deduction. However the benefits announced for the salaried class benefit the income tax payers in all categories. The FM could have done no better than this to reformed tax structure for salaried class.

ankur6s asks Do you think that this duty structure is up to the world class level. Are other countries like china also having such low duty for imported machines.

Rustagi_ says The customs tariffs in India are still higher than in many other countries. China started reforming the economy much earlier. The customs tariff in China are much lower than what they are in India. Govt. has adopted the policy of gradual reduction in customs duties so that it does not hurt the domestic industry abruptly. At the same time deep reductions in duties have been made for certain important sectors. In due course the customs tariff in India would be at par with those prevailing in Asean Countries.

rcskumar asks for eg. A's gross income:1.9L as per new tax regime only 90000 of A's salary is taxable. If A invest 50000 what will be the tax payable for him. How it is calculated.

Rustagi_ says The investments upto Rs. 1 lakh is not to be counted in income for computing the income tax. In this particular case the taxable income would be 1.4 lakhs. There is no tax on the first 1 lakh. The next Rs. 40 thousand are taxable.

arunskumar asks With the new tax slabs, dont you think std deduction should have been continued. Now the slabe benefits business class more than salaried, because they can claim deductions and their taxable income would be applicable to new slab

Rustagi_ says In my opinion, the new package is more rational and easy to implement. With the liberal deduction upto Rs. 1 lakh by way of savings from income, the benefit that accrues to the tax payers is substantial. Besides the FM has also revised the tax slabs for the benefit of tax payers in all categories. On the whole his package is beneficial to everyone.

hemaraghu27 asks in respect of the Senior cititzens earning say Rs 2 lakhs, dint you think the tax liability has increased due to withdrawal of tax rebate of Rs 30000 allowed in the previous year?

Rustagi_ says In the case of senior citizens, the finance minister has announced much more liberal exemption. As against the normal exemption upto Rs. 1 lakh, for senior citizens the exemption limit is Rs. 1.5 lakhs. The tax structure should be seen in totality. The way it is designed it has helped taxpayers in all categories and much more women and senior citizens.

vbrvish asks What is the Income Tax structure for NRI? My brother is getting rental income India?

Rustagi_ says Generally speaking the income earned by the NRIs as Foreign Income is not taxable. For this purpose the income tax act provides the definition of NRI. Income earned in India by the NRIs is taxable.