This is what shared by one of the clients. Let me tell you, as per the Income Tax Act you can avail tax benefits for HRA, interest on housing loan till you fulfill certain required conditions. Let us find out some situations where one can claim both HRA exemptions and benefits of interest payment on Home Loans. You own a House in another city:
The north-south divide would be increased as a result.
It says the UK should have a flat tax system. Superficially flat taxes look attractive.
People like the idea of simplicity. The PR pitch is that flat taxes are simply about multiplying your income, less a tax allowance that is the same for everyone regardless of circumstances, by a fixed and single percentage rate to calculate your tax bill.
Flat taxes are in reality a massive exercise in re-engineering relationships within society. Some examples prove that, all based on this latest TPA report.
First, the TPA suggests the abolition of all wealth taxes. The taxes it would abolish include capital gains tax and inheritance tax, plus stamp duty on properties, which is a progressive wealth tax. The only people who would gain are, of course, the wealthy.
Second, it would abolish taxes on company profits and would put in their place a highly avoidable charge on some payments made by companies to shareholders, lenders and landlords.
While that alternative might mean small private companies would pay taxes, it would be incredibly easy for larger companies, or any company owned by a tax haven trust to walk right round their proposed new laws on dividends, rent and interest payments. In effect that abolishes another tax on those with most wealth.
The fact that it defends tax haven activity, so often used to create and broaden inequality, as morally justified is yet more evidence of what it intends from its proposals. This TPA proposal is therefore a cynical attempt to deny services in areas of greatest need while reducing council taxes in the areas of greatest wealth.
Which leads to the fourth reflection upon this report.
That, however, is grossly misleading. In other words, what it proposes is to effectively abolish the welfare state, and that would impose costs on everyone that would massively outweigh any tax savings some people would enjoy.
The TPA does make it clear that there would be cuts in healthcare and that it does not think it worth investing in education to the point where all have the chance of equality of opportunity.
There it talks about the need for the market to prevail so that wages can be depressed to the point that the market provides a job for all who want one. Not only is this a blatant attempt to ensure that wage levels can be reduced considerably, but the underlying assumption that the market will always produce jobs if wages are low enough is just wrong, as Keynes showed in the s.
It is an exercise in deliberately promoting a smaller state for the benefit of a tiny number in our society at cost to the vast majority. The TPA is at least honest about this. It argues there is no merit in equality.
It is blatant about the fact that all that matters to it is total income, irrespective of how it is shared or what the consequences are for those who suffer in its creation. What is worrying is that such callousness has been given so much attention.The flat tax is a federal income tax system that applies the same low rate across the board.
Its success depends on the tax rate proposed. It must take in enough revenue to fund the federal government.
Most flat tax systems also allow exemptions for those living below the poverty line. As a result. Share on Facebook. Share on Twitter. Share on Google+; Share on LinkedIn; Pin It! “If I take tax benefits on Interest payments for my home loan then I will loose HRA (House Rent Allowance) claims”.
This is what shared by one of the clients. According to Progressive Policy Institute, the debate between flat and progressive tax systems is robust, with valid arguments on each side. Progressive taxes carry significant benefits to economically disempowered households and society as a whole.
About National Pension Scheme (NPS) The National Pension Scheme (NPS) is a contribution scheme launched by the Indian government, which offers a large variety of investment options to employees. The scheme helps individuals make decisions with regards to where they should invest their pension wealth.
This chart graphically details the %DV that a serving of Olives provides for each of the nutrients of which it is a good, very good, or excellent source according to our Food Rating System.
The "flat tax" is an income tax system in which everyone pays the same tax rate regardless of income. These systems are in place in eight U.S.
states as of , but legislation is afoot in at least one state to change to a progressive system. The Flat Tax Simplifies Taxation Advocates of the.