Welcome to Silver Innings Blog, Good Day

Powered by IP2Location.com

Thursday, April 1, 2010

Bizarre taxation : Only happens in India

An outrageous case of taxation.


Those of you who have money in bank Fixed Deposits would probably do well to check of your principle is intact!


My friend, a senior citizen discovered that her Rs 50,000 fixed deposit had suddenly shrunk to Rs 49,xxx. On asking the bank, she was told that it was tax deducted at source.

She pointed out that tax can only be deducted out on income on the deposit and not from the deposit itself.


We learn to our utter horror, that indeed under a Central Board of Direct Taxes (CBDT) circular, banks have been asked to deduct tax in advance per quarter in advance on accural basis.


This means that if it is a new deposit then the banks are simply lopping off your principal.


This is outrageous. I can't see how the government can eat into savings and deplete the principal in the name of collecting advance tax.

This happens only to tax paying citizens in India. What is even more unfair is that most of these deposits are fully tax paid.


We need to make a noise and protest. Do write in your comments to demand correction of this absurd and bizarre decision. Or at least its absurd implementation.


best regards,

Sucheta Dalal,

Email: suchetadalal@yahoo.com

Consulting Editor, MoneyLIFE Magazine

www.suchetadalal.com, http://suchetadalal.com/blog/

www.moneylife.in - Tel: 022-24441060

"All that is necessary for the triumph of evil is for good men to do nothing." --- Edmund Burke



No comments:

Blogsite Disclaimer

The content of this Blog, including text, graphics, images, information are intended for General Informational purposes only. Silver Innings Blog is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within the site. While the information contained within the site is periodically updated, no guarantee is given that the information provided in this Web site is correct, complete, and up-to-date.The links provided on this Blog do not imply any official endorsement of, or responsibility for, the opinions, data, or products available at these locations. It is also the user’s responsibility to take precautionary steps to ensure that information accessed at or downloaded from this or linked sites is free of viruses, worms, or other potentially destructive software programs.All links from this Blog are provided for information and convenience only. We cannot accept responsibility for sites linked to, or the information found there. A link does not imply an endorsement of a site; likewise, not linking to a particular site does not imply lack of endorsement.We do not accept responsibility for any loss, damage or expense resulting from the use of this information.Opinions expressed by contributors through discussion on the various issues are not necessarily those of Silver Innings Blog.