Deductions and Exemptions

DTC expected to detain the deduction of 100,000 only to the standard fund(s) viz. approved provident fund, pension fund, superannuation fund, PPF. The committee has suggested that the above limit be raised to Rs1.5 lakhs. An additional deduction of 50,000 is proposed to cover payments under DTC such as life insurance premiums, health insurance premiums and the tuition fee. The mentioned limit has is suggested to be increased to 1 lakh and life insurance policies where premium does not exceed 10 percent should also be eligible for deduction. Further, a separate deduction of 20, 000 is suggested for medical insurance of senior citizens. An added deduction of 50,000 has also been suggested for higher education.

Wealth Tax

The Committee has suggested that wealth tax be charged on or above 5 crore at progressive rates. Shares of controlled financial corporation are suggested to be barred from taxable wealth. Foreign nationals meeting the criteria to be residents of the country are expected to be taxed on their global wealth under DTC. The committee has suggested continuing the present tax provisions of not charging any wealth tax on assets of such foreign nationals situated outside India. Lastly, NRIs will applaud as the benefit of applicability of 182 days condition to agree on residency of NRIs on visit to India is suggested to be restored in DTC in line with the existing laws.