Sinha likely to give back I-T concessions

new delhi: finally, there may be some good news on the budget front, even if it comes on the rebound. union finance minister yashwant sinha is all set to roll back to 20 per cent the rebate on specified savings made by taxpayers earning between rs 1.5 lakh and rs 5 lakh a year. in the budget he presented recently sinha had reduced the rebate to 10 per cent. but the debacle of the bharatiya janata party in the elections to the delhi municipal corporation is being interpreted within the party as the anger of the middle class against the tough measures in the budget. the bjp is also under pressure from its allies in the national democratic alliance. both these factors could compel sinha to roll back budget measures. what this could mean is that taxpayers earning upto rs 5 lakh a year can continue to claim a maximum benefit of rs 16,000 for life insurance premia, provident fund and similar investments under section 88 of the income-tax act. finance ministry officials told the times of india that there is ‘‘pressure’’ on the finance minister for a rollback and the central board of direct taxes (cbdt) has issued a circular to chief commissioners all over the country asking them to collect data, especially of the salaried class. a source in the ministry said letter number 153/54/2002, issued from the tax planning wing of the cbdt, clearly indicates that there is a ‘‘strong possibility’’ of a rollback because the income-tax department has been asked to collect on a top priority basis the data relating to returns filed during the financial year 2001-2002. ‘‘the i-t department has been asked to give the slab-wise break-up of the number of returns filed by individuals and hindu undivided families (hufs). it has also been asked for a slab-wise break-up of the number of individuals deriving income from salary,’’ said the source. the letter says, ‘‘the information is desired by the finance minister in connection with the discussion on the finance bill during the budget session. accordingly, it is requested that the requisite information may be compiled most urgently on a top priority basis and be sent to member, legislation, cbdt, by fax latest by april 2.’’ the rebate given on life insurance premia, contribution to provident fund and others under section 88 ranged from 20 per cent to 30 per cent depending on the income and other criteria. but the proposed deduction in the budget-2002 restricts it to 10 per cent for income slabs of rs 1.5 lakh to rs 5 lakh and offers nothing to income slabs of rs 5 lakh and above.