WILL THE NEW TAX CODE KILL ALL TAX BENEFITS A DISCUSSION

Rajesh Kumar Thand says

The new tax code is good on some aspects like widening of tax slabs and also reduction of
tax rates, but overall it will not benefit the salaried class because of the simple reason that
they cannot claim tax rebates on home loan interest paid, medical expenses and LTA. Who will now buy a home if there is no tax rebate. The good thing may be, it will lower the demand for home loans and so there would be a severe drop in the realty prices. We can get homes in cheaper prices. I sincerely doubt, this will be implemented since the realty lobby and banks will push for the existing home loan interest rebate for tax to stay, otherwise they are going to incur heavy losses. Imagine if there are no home loan borrowers what will happen to the future of banks and realty companies. Travel companies and airlines will be hit badly because no one can claim LTA. All premature insurance, PF withdrawals will be taxed. Moreover no tax benefit on investments in mutual funds is going to hit lot of financial firms. Government is not doing any favour to the middle class since the benefits incurred earlier on home loan interest, HRA & mutual funds are going to nullify the new benefits to be given to tax payers because of widening of tax slabs and lowering of tax rates. Every year the IT department actually beats the target they fix for direct tax or indirect tax collection, but still our government is hell bent on devising new strategies to tax people rather than providing relief to the tax payers.


Neeraj Kumar says

The Draft Direct Tax Code has done away with all exemptions and has made a very good attempt to uncomplicate the tax-planning. Filing of return would be much more simpler.

If you are a middle class person then kindly analyze your tax burden after removing all exemptions under the new tax slab. You will hardly find any difference. In fact, majority of us would be benefited.

By making the Income Tax Act uncomplicated and simpler it would also reduce corruption. Isn't it? So first think before criticizing this bold attempt by the Ministry of Finance.

Ahbhay Gangurde says

1. Net taxes reduced on salaried.
2. Tax benefits on primary housing reduced. This will lead to reduced interest in buying big homes & big loans just to save taxes. Only people who want to buy a home will buy. People buying a second home will get tax benefit on loan but at the same time will have to add the rent to total annual income and pay taxes on it.
3. You now have complete freedom in planning your finances. Earlier it was a "Tax Saving Planning"