The meeting, which was arranged at Hyderabad, on the visit of Sri A.R. Saifulla, President, All India Central Bank Officers' Federation, has been turned out as a grand success. We are placing the photographs taken on the occasion for our readers.
Showing posts with label MISC.. Show all posts
Showing posts with label MISC.. Show all posts
SIBAL ANNOUNCES EDUCATION FINANCE PLANS FOR STUDENTS, INSTITUTES
The Human Resource Development Minister, Mr Kapil Sibal, announced two education initiatives that are still in the pipeline, but once brought into effect, would give India's youth easier access to higher education and, therefore, increase the country's pool of educated youth.
The Centre is planning to set up an Education Finance Corporation where students could access education loans at an interest rate of around 4 per cent and the Government would stand guarantee to every loan sanctioned to ease the pressure off the parents and the banks. “This would also mean there would be no fee restrictions and, therefore, institutions can offer better facilities and teachers,” said Mr Sibal.
Another initiative is for institutions interested in investing in education. He said that the Government would ensure that easier credit is available to these organisations.
“Under this plan, institutes can borrow at less than the prime lending rate and the loan would be repayable in 25 years.”
Delivering the Vithal N Chandavarkar Memorial Lecture at the Indian Institute of Science on ‘Empowerment through education,' Mr Sibal said that the country needs to reach a critical mass of more than 50 per cent young people pursuing university education (currently it's around 12 per cent), to achieve its dream of double digit growth. “Nothing will be realised unless we invest in education and empowerment.”
On foreign investment in education, he said that the matter has been referred to the Standing Committee and the Government is awaiting its recommendations.
No foreign university would be allowed to come here on its own, he said. It would in a JV with an Indian institute and 75 per cent of its earnings would be invested back here, he clarified.
Mr Sibal said there was a great opportunity for India to become the hub of education in this century. “There is large human resource available in the country and there will be education providers waiting to access our people.”
INCREASED EXEMPTION LIMITS UNDER DTC TO BENEFIT 96PC TAXPAYERS
The proposed increase in exemption limits in the Direct Taxes Code (DTC) Bill will benefit an overwhelming 96 per cent of taxpayers, who earn less than Rs 5 lakh a year.
The DTC Bill, which proposes to exempt income up to Rs 2 lakh from payment of income tax, compared to the existing limit of Rs 1.6 lakh, was introduced by Finance Minister Pranab Mukherjee in the Lok Sabha today.
"The objective of increasing the exemption level and providing little more relief at the low end has been targetted to get benefits across to the largest number of taxpayers," said Revenue Secretary Sunil Mitra.
The government plans to roll out the new direct tax regime from April 1, 2012.
Briefing newsmen after the Bill was tabled in Parliament, Mitra said around 96 per cent of India's taxpayers are in the earning bracket of Rs 1 lakh to Rs 5 lakh.
"95.75 per cent, to be precise, of India's 3.25 crore tax payers are in the slab of Rs 1 lakh to Rs 5 lakh of income. They pay around 30 per cent of our total taxes.
"The slab of Rs 8 lakh and above accounts for 2.2 per cent of our taxpayers, but they pay 60 per cent of the taxes, that leaves 10 per cent which is in the Rs 5 lakh to Rs 8 lakh," Mitra said.
According to the Bill, annual income from Rs 2-5 lakh is likely to attract tax at the rate of 10 per cent, while the Rs 5-10 lakh bracket will be taxed at 20 per cent and above Rs 10 lakh at 30 per cent.
At present, income between Rs 1.60 lakh and Rs 5 lakh attracts 10 per cent tax, while the rate is 20 per cent for the Rs 5-8 lakh bracket and 30 per cent for above Rs 8 lakh.
People earning more than Rs 10 lakh a year may save up to Rs 41,040 in income tax, if the slabs proposed by the DTC Bill come into effect, experts said.
Similarly, the tax burden would reduce by Rs 21,540 for those earning an annual income between Rs 5 lakh and Rs 10 lakh, while those making Rs 2 lakh to 5 lakh could be richer by Rs 7,660, Deloitte Haskins & Sells Partner Neeru Ahuja said
RELIEF TO TAX PAYERS IN OFFING: GOVT TO TABLE DTC BILL TOMORROW
The Government will table the much-awaited Direct Taxes Code (DTC) bill in the Lok Sabha tomorrow, that is expected to provide relief to income tax payers, both personal and corporate, though not as much as was proposed earlier in the draft.
The government is quite confident of replacing archaic Income Tax Act with DTC from April one, 2011.
Finance Minister Pranab Mukherjee has said he would announce the slabs for personal income tax while tabling the bill and has refused to share the details before that.
He has only said so far that the exemption limit will be raised from the current Rs 1.6 lakh in a year to Rs two lakh.
However, sources said that as per the bill, approved by the Cabinet on Thursday, income between Rs 2-5 lakh is likely to attract 10 per cent tax; for Rs 5-10 lakh it will be 20 per cent and above Rs 10 lakh, 30 per cent.
Currently income between Rs 1.6-5 lakh attracts 10 per cent tax; between 5-8 lakh, 20 per cent and beyond 8 lakh, 30 per cent.
The proposed tax slabs are much lower than originally proposed in the draft DTC bill -- 10 per cent for Rs 1.6 lakh to Rs 10 lakh, 20 per cent between Rs 10-25 lakh and 30 per cent for income above Rs 30 lakh.
Compared to the current tax slabs, the proposed rates will make tax payers earning Rs 15 lakh a year richer by Rs 41,040.
Similarly, tax burden would reduce by Rs 21,540 for those earning between Rs 5 lakh and Rs 10 lakh annually, while those earning between Rs 2-5 lakh could be richer by Rs 7,660, Deloitte Haskins & Sells Partner Neeru Ahuja said.
The tax slabs are proposed to be reduced from the draft stage, because the government is expected to retain income tax exemption on interest on housing loans up to Rs 1.5 lakh a year, under pressure from certain quarters.
Also, earlier proposals of taxing long term savings like provident funds at the time of withdrawal have been dropped.
DTC aims at reducing tax rates, and cutting exemptions. With the government getting adverse feedback on the proposals to withdraw some exemptions, it will have to calibrate tax rates to save the government kitty.
The DTC bill also proposes to retain corporate tax at 30 per cent, but without surcharge and cess. With them, the current tax liability on corporates comes to over 33 per cent.
Tax experts said this proposal will provide much needed relief to the industry and bring the levy on par with global standards, though the industry wanted it to be reduced to 25 per cent. The government also conceded to the industry demand not to levy minimum alternate tax (MAT) on assets but book profits of the companies. So, it had to dilute earlier proposal of cutting corporate tax to 25 per cent, sources said.
However, the government raised MAT to 20 per cent from 18 per cent, but it should not make much of a difference since with surcharge and cesses, MAT currently comes to 19.33 per cent.
MAT is tax imposed on profit earning companies that do not fall under the tax net because of various exemptions.
Sources said it is for Parliament to decide whether DTC will be the money bill or ordinary legislation.
In case, it is money bill, the government is required to pass it in the Lok Sabha only.
As such, the government is confident that the DTC could be enacted from next fiscal.
CABINET GIVES NOD TO DIRECT TAXES CODE BILL
The Cabinet on Thursday approved Direct Taxes Code (DTC) Bill, clearing decks for tabling the legislation in the Monsoon Session of Parliament so that the new Act ushering in reduced tax rates and exemptions may come into effect from next fiscal.
The Cabinet cleared the bill, highly placed sources said. When enacted, DTC will replace the archaic Income Tax Act and simplify the whole direct tax regime in the country.
The code aims at reducing tax rates, but expanding the tax base by minimising exemptions.
The Finance Ministry had earlier come out with a draft on the DTC bill, some of whose provisions drew strong criticism from industry as well as the public.
To address those issues, the ministry brought out the revised draft, dropping earlier proposals of taxing provident funds on withdrawal and levying Minimum Alternate Tax on corporates based on their assets.
"As of now, it is proposed to provide the EEE (Exempt- Exempt-Exempt) method of taxation for Government Provident Fund (GPF), Public Provident Fund (PPF) and Recognised Provident Funds (RPF) ...", the revised DTC released by the Finance Ministry said.
The revised draft also puts pensions administered by the interim regulator PFRDA, including pension of government employees who were recruited since January 2004, under EEE treatment.
The first DTC draft had proposed to tax all savings schemes including provident funds at the time of withdrawal bringing them under the EET (Exempt-Exempt-Tax) mode.
Under the EEE mode, the tax exemption is enjoyed at all the three stages--investment, accumulation and withdrawal.
As regards MAT, it has been clarified that tax would be levied on the book profit, as is the current practice, and not on gross assets has proposed in the draft. The government, Mitra said, had received 1,600 representations on the first draft which was made public in August last year.
The second draft, however, did not give any details on the income tax structure such as the slabs or rates, which were provided in the first draft released in August 2009.
The first draft had suggested 10 per cent tax on income from Rs 1.60-10 lakhs and 20 per cent on income between Rs 10-25 lakhs and 30 per cent beyond that. However, officials later said these slabs were illustrative.
The officials said the tax rates would be made known only in the proposed Act.
The earlier DTC draft had proposed to reduce the corporate tax to 25 per cent from the present 30 per cent. The revised proposal has also made it clear that tax incentives on housing loans will continue. Payment on interest on housing loans up to Rs 1.5 lakh will continue. The earlier draft was silent on housing loans.
PROCEDURE FOR REIMBURSEMENT CLAIMS FOR HOSPITALIZATION
The brouhaha over withdrawal of cashless mediclaim in some hospitals by four public sector general insurers has forced many policyholders to opt for making reimbursement claims for expenses incurred during their hospitalisation.
While it is certainly not comparable to the convenience that the cashless facility offers, the insured can, by following the requisite procedure laid out by the insurance company, ensure that it does not turn out to be a tedious procedure.
Here’s the gist of the procedure typically followed by insurance companies or the third-party administrators associated with them and points you need to bear in mind while filing the claim for reimbursement.
Upon discharge, you need to collect the bills, discharge summary and other relevant documents from the hospital. Documentation should also include diagnostic reports and medical advice, if any, from the doctor pertaining to the post-hospitalisation period and cash receipts, if any.
Make sure you verify the completed bill before signing the same. Any discrepancy (or inflated amount) would not only mean lower sum insured available for the rest of the year, but could also act as a roadblock in the path of claims processing.
Once you are out of the hospital, you have to submit all the original documents related to your treatment to the insurer (if claims processing is done in-house) or to the designated TPA (third party administrator).
It is advisable to collect all the documents and submit the same at one go rather than furnishing them when the TPA or the insurer’s claims cell specifically asks for the same once the claims process commences. This will help eliminate any delay in claims processing.
Apart from documents from the hospital, if you have incurred any costs prior to, and after, the hospitalisation period, you need to submit these documents too, provided they are related to the cause of hospitalisation. The norm in the industry is that expenses pertaining to 30 days prior to hospitalisation and 60 days post discharge are to be reimbursed by the insurer.
It also makes sense to acquaint yourself with the exclusions and sub-limits in the policy while claiming a reimbursement to avoid surprises later.
Pregnancy is not covered under several individual mediclaim policies. Similarly, treatment for cataract and piles may not be covered in the first year. Dental treatment and outpatient department expenses are admissible only under a handful of policies. Any tonics, vitamins or equipment like a pacemaker or a wheel-chair, too, could be excluded by some insurers from the scope of coverage.
Once the documents are submitted, the TPA or the insurer’s in-house cell will review the same and arrive at a decision on settling the claim as well as the extent to which the expenses can be reimbursed.
Typically, within a maximum of 21 days from the date of submission of relevant documents, the insurance company reimburses the amount. In case the processing unit has a query or rejects the claim, an intimation letter is sent to the policyholder.
RESTORATION OF CASHLESS FACILITY LIKELY FROM TOMORROW
The private sector hospitals and PSU insurers are likely to arrive at an interim settlement on restoration of cashless treatment facility at major hospitals in the country from tomorrow.
The major corporate hospitals - Apollo Healthcare, Max, Medicity and Fortis- have given their package rates for treatment under mediclaim policies to the Third Party Administrators (TPAs), which are the facilitators between the insured and the insurer.
Final rate structure would be decided in another 30-40 days. Under the structure that is being worked out, hospitals would be categorised on the basis of super specialty medical centres and premiums would vary accordingly.
Currently there are 449 hospitals across the country under the cashless network, but corporate hospitals were removed by the PSU insurers from their preferred provider network (PPN) from July 1.
Four insurance companies - New India Assurance, United India Insurance, National Insurance and Oriental Insurance - had stopped the cashless service to these hospitals on charges of over-billing.
Currently many health insurers give more in claims than they collect from premiums. In fact, the claim ratio, which measures this trend, is about 140 per cent for the industry.
The public sector insurance companies had to resort to rationalisation of rates for cashless facilities as they suffered a loss of Rs 2,000 cr because of overcharging by hospitals in Mumbai, Delhi, Chennai and Bangalore.
I-T DEPT STREAMLINES TAX REFUND PROCEDURE FOR FASTER PAYMENT
In a move that will speed up the issuance of I-T refunds, the Income Tax Department for the first time will accept all TDS credit and refund claims not exceeding Rs 3 lakh and Rs 25,000, respectively, at the stage of processing of income tax returns itself.
The Central Board of Direct Taxes (CBDT) has communicated the order applicable for the assessment year 2009-10 to all the Chief Commissioners of Income Tax in various tax collecting ranges across the country.
In all other remaining cases, the claims would be processed after proper verification, the officer added.
"In all the returns filed in ITR-1 and ITR-2 for assessment year 2009-10, where the aggregate TDS claim does not exceed Rs 3 lakh and where the refund computed does not exceed Rs 25,000, the TDS claim of the tax payer shall be accepted at the time of processing the return," the order stated.
ITR-1 deals with pensioners' income and others, while ITR-2 deals with income from house property and others.
"In all the returns filed in forms other than ITR-1 and ITR-2 for the assessment year 2009-10, where the aggregate TDS claim does not exceed Rs 3 lakh and the refund computed does not exceed Rs 25,000 and there is 10 per cent matching of TDS amount claimed, the TDS claim shall be accepted at the time of processing of the return," the order added.
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