Expert Answers: Some relief likely on personal taxes

NO TAXES: Amitabh Singh, Partner & Country Leader for Human Capital, Global Mobility & Employment Taxes, E&Y answers tax-related queries.

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Keywords: Tax, Personal Finance

Karthick Ganesh: Though the subsidies are offered for petroleum products, the product (petrol, Diesel, LPG) are higher in India when compared to neighbouring countries. What's the use in fixing higher tax for petroleum products and then offering subsidies? Is there any fix for this?

Amitabh Singh: Prices of petroleum products is a sensitive issue as it has ramifications on price of general commodities. You have a good suggestion that the tax rates should be lowered rather than provide subsidies and the government should consider such options.

Vinod Kumar Mishra: We pay tax every year. You can say I have to pay tax in advance by 10% TDS but this is very tough job to take return. I can praise the Finance Minister's approach to expand the tax net, but it should be rational.

Amitabh Singh: If TDS is going to be more than actual tax liability, one can always apply to the ITO for obtaining a certificate for lower rate of TDS. The provisions are given in the law.

Sonal: What do you think about the FBT? Don't you think it’s a regressive measure? Salaried employees will be left with hardly any thing thanks to this?

Amitabh Singh: FBT has its lacunae and we have brought it to the notice of the tax department. However, now that it is law, we have no choice but to comply. However, we can continue to ask for lowering of the FBT rates.

Cheena: Can you tell the tax slabs of countries like US, UK, Singapore for income tax? Do you think we need more slabs?

Amitabh Singh: If I recall correctly, UK has 3 slabs, USA has 6 slabs and Singapore has 7 slabs. There could be a case for insertion of another slab, say Rs. 2.5 lakhs to 5 lakhs and the residuary slab being more than Rs. 5 lakhs. However, the maximum rates should be kept constant and not increased.