EPF cap increased to ₹ 5 lakhs due to non-contribution by the employer.
The Center is ready to consider bringing fuel under the Goods and Services Tax regime if the states raised the issue in the GST Council, Finance Minister Nirmala Sitharaman said on Tuesday that all decisions related to indirect tax are governed by the Council. Not the Ministry of Finance.
The Minister introduced 127 amendments to the Finance Bill, 2021, which was passed by the Lok Sabha. These include an income tax break for the proposed development finance institution for infrastructure financing and a change in the proposed tax provisions for the contribution of the Employees Provident Fund (EPF).
In the budget, defending the decision to levy Cess on various items including fuel, Ms. Sitharaman said that the proceeds from the collection would be shared with the states as they were in charge of agricultural infrastructure like APMC. Marketing Yard.
“The cess cannot be developed for the states, but will eventually be used to improve infrastructure in agriculture and agricultural yards and marketing yards, which are with the state governments and therefore the funds will go only to the states. ” FM said.
The minister also sought to acknowledge the states’ concerns about a possible reduction in funds allocation due to the Finance Commission’s recommendation of setting up of the Non-Default Defense and Internal Security Modernization Fund. “In principle, we have agreed to it. [But] The fear that this will be imposed on the states is not at all established. We have not decided on it yet.
“In the Finance Bill, some new proposals are being added to the nominal nature,” the minister said.
EPF Tax
The government has also introduced an amendment to the budget proposal for tax income on employee contributions of more than 2.5 lakhs a year in provident fund accounts.
“There are 1% people who are also going on contribution of 5 crores also. Lakh 2.5 Lakh [cap] 92% -93% people are included, ”said FM. “Therefore, I don’t think it’s going to affect the people for whom tax-free, assured income is provided under the scheme,” she said. “Through an amendment, I intend to increase this limit to ₹ 5 lakh in those cases, and only in cases where there is no contribution by the employer to the EPF account,” Ms. Sitharaman said.
Tax fuel
Responding to the concerns of many MPs about higher taxes on petrol and diesel and suggestions for bringing them under the GST regime, Ms Sitharaman said that both the Center and the state were fueling and the Center taxes with the states Had to share.
“And if it’s a concern, well, there’s a concern about fuel taxes. I honestly think, many states will be watching this, and in the next GST Council, if that discussion comes up, I would be happy that it will be put on the agenda and discussed. Let the states come and discuss it.
“Issues related to GST, being placed before the Finance Minister, are not matters of the Finance Ministry,” he said. “They are matters of the GST Council in which all states are members. It is a collective decision and without their approval, things cannot happen, ”said Ms. Sitharaman.
Base intimacy
Permanent Account Number (PAN) card holders fail to notify their Aadhaar number to the Income Tax Department, or to pay Aadhaar interim default fee of up to Rs 1,000, as per the amendments made on finance, before a specified date. Will be responsible Bill.
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