scorecardresearch

Talk Back

Service tax is a major cause of concern. Services under this tax may boost the revenue of the government but certain categories should be exempted from its purview.


 The discount store story (More for Less, 8 Februar y) opened my eyes to the fact that these stores are much more than just low-price shops. As a homemaker I find budgeting for family expenses easier now.The Small Fortune was a good way of showing how a small step can lead to great rewards. KAVITHA UNNI, Kochi

Discount stores not only suit the Indian middle-class’s purse but also their changing lifestyle. That explains their immense popularity. MONEY TODAY will try and cover more such features that combine personal finance with lifestyle.

Service tax is a major cause of concern. Services under this tax may boost the revenue of the government but certain categories should be exempted from its purview. For example, the service tax levied on the interest charges charged by the credit card issuers is quite damaging. If the interest charged is Rs 1,000, the service tax levied is 12.5% which is around Rs 125. This when banks do not levy service tax on the interest charged for loans. Service tax should be allowed as a deduction from the total taxable income as the concession given to professional tax as both the taxes are paid directly by the individual. SUBBIAH A RAJ, Chennai

We agree with you Mr Raj and had highlighted how service tax is beginning to add to the impact of already high inflation on the middleclass budget (The One Rise That Isn’t Good—MONEY TODAY, 28 December 2006). Lets hope Budget 2007 doesn’t add to the tax burden.

Your story on how gizmo purchase can help save tax was very informative (Gizmos to Save Tax, 25 January). You have mentioned that PC or laptop expenses can be claimed as deduction. I am a central government employee, can I claim this as deduction? Under what section will it be covered for salaried employees?
ARVIND KUMAR, e-mail

The deduction can be claimed if the company’s policy (in this case the central government services) allows the use of PC for official purposes. This facility is available in very few PSUs. Prima facie a central government employee can’t claim the benefit.

I would like to know If there is a list of companies that have yielded annual returns in the range of 100-1,000% in the past one year. This information will help me choose investing options in the equity market.
SUBHASH MAHANTA, Tinsukia

MONEY TODAY has been regularly providing extensive and focused coverage on stock investing. Apart from exclusive stories (The Golden Rules, 2 November; The Safe Bets for 2011, 16 November; The IPO Treasure, 30 November; Most Wanted Stocks, 28 December), our regular section Market Watch and Stocks Watch also provide market guidence.

How to Talk Back
Mail: Money Today, F-26, Connaught Place, New Delhi 110001
E-mail: letters.moneytoday@intoday.com
Fax: 011-23736217