Online Petition to Protest Against the Govt Policies on FDs and PAN

Online Petition to Protest Against the Govt Policies on FDs and PAN

Please register your protest against the current fiscal policies on your FDs and transactions based on PAN

There are four issues of concern, especially to senior citizens:

1. “Under a Central Board of Direct Taxes (CBDT) circular, banks have been asked to deduct tax in advance per quarter on accrual basis.” ref. Sucheta Dalal.
According to another CBDT circular, of March 2, 2010, “No income tax at source will be deducted if banks have only made a provision for interest on fixed deposits and not actually paid it to the depositor”. It further clarified that “since no credit is given to the depositors while calculating interests on fixed deposits on daily or monthly basis in the CBS software used by banks, tax need not be deducted at source on such provisioning of interest.”

2. Banks and other entities accepting FDs, deduct tax at source in advance on the full interest paid once it exceeds Rs.10,000 p.a. If there is no tax liability, the investor submits Form 15H requesting non deduction, with an affidavit on their income being below the basic exemption limit after deductions. Since tax is paid only on taxable income beyond the basic exemption limit, deducting tax at source for the whole income leads to excess tax deducted, with the assessee having to claim a refund.

3. The rule requiring all to obtain and quote Permanent Account Number (PAN) comes into force effective April 1, 2010. Failure will hereafter attract TDS at a penal rate of 20% against a normal 10% if the assessee fails to quote the same in all financial and tax transactions.

4. With the new Direct Tax Code effective April 1, 2011, is it fair, a person earning just above 25 lacs a year, pays a tax at 30% - the same 30% applicable for one earning several crores a year? Should not there be another slab for those earning, say above 2-3 crores a year, in the form of an additional 5% tax at least, considering senior citizens in the age group of 70 years plus, have paid tax at a marginal rate of 93% in the socialist 70s on their sealed annual income of 50,000 and also had to keep aside 10% for Compulsory Deposit Scheme(CDS)? This was refunded in dribs and drabs only after a 10 year period when its value, with inflation over this period, being reduced to not 'nil' but 'negative'!