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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It is that time of the year when the common man breaks into a sweat, anticipating taxing times ahead. For most people -- be it salaried individuals, freelancers, families or NRIs -- tax worries can be quite a bother.

In order to get an understanding of the tax scenario, IBNLive organised an online chat with Amitabh Singh, Partner & Country Leader for Human Capital, Global Mobility & Employment Taxes, Ernst & Young.

N Raja: How many countries have FBT other than India?

Amitabh Singh: Very few. If I recall, Australia has FBT but there were talks of removing it.

Ashutosh Mishra: What do you think of the disallowance of expenditure on non-deduction of TDS clause? Is some amendment proposed?

Amitabh Singh: Not likely. The disallowance does seem unfair due to the extreme onus put on the deductor. However, this is one of the measures from the government to curb tax avoidance.

Avinash: I have taken a personal loan but spent it on a house. Can I get benefits of housing loan? I took the loan to avoid the lengthy documentation work in getting housing loan.

Amitabh Singh: If you can clearly establish that the loan was spent on the house property, it may be possible. However, this situation needs to be further analysed and I suggest you consult your tax consultant before you proceed.

Avinash: Who prepares the Budget? Are CBDT members, ICAI direct tax committee members or other such professional bodies’ members called before the finalisation of Budget for review?

Amitabh Singh: The Budget is prepared by the Finance Ministry and many people are involved including the PM, FM, Revenue Secretary, Finance Secretary, CBDT members and officers of the Tax Policy and Legislation (TPL) department. As a part of the Budget process, the CBDT and Finance Minister meet many chambers of commerce and professional bodies to take their views and expectations.

N Raja: By widening the tax net, do you think India's per capita income will increase?

Amitabh Singh: In a way yes, if we keep the lowest slab at Rs.1.1 lakhs and more people earn more than that and start paying taxes, that is a sure sign of increase in per capita income. However, the government has to generate employment and improve social and production infrastructure to enable increase in per capita income.