The Hindu Business Line : Encourage investment in pension schemes

It is important to address the need to significantly enhance the tax benefit available under Section 80 CCC (i) for investments made in pension. At present the deduction for Section 80CCC for pension schemes has been clubbed with in the overall limit of Rs 1 lakh for Section 80C.

Section 80CCC should be made independent of Section 80C, since pension addresses a special need – the provision for post retirement income – and it cannot be compared with the other tax saving instruments which are general in nature. Thanks to the advancement in medical research, the longevity of the population has increased and hence the need to provide for old age. Tax incentives still continue to be the driver for investment in pension schemes. Contribution to pension funds are on Exempt-Exempt-Tax (EET) model and is not attractive from investors point of view when he can invest the same Rs 1 lakh in other savings which are under EEE model.

Rajesh Relan, Managing Director,

MetLife India Insurance Co Ltd

Scrap tax treaty with Mauritius

The Government needs taxes. Everybody individuals /corporate entities have to be taxed. Why exempt FIIs and other foreign PEs, mutual funds or foreign individuals when they invest via Mauritius? We need foreign investment, but not portfolio investment in stock market. Especially, we don’t want them to invest tax free. Hundreds of thousands of crore rupees can be collected by getting rid of the tax treaty with Mauritius.

Chandan Pathak

Cleveland, Ohio, USA

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