In an attempt to provide some relief from hefty traffic fines, government is all set to bring traffic fines under income tax deduction in a new section 80CC.
Chief Income Tax officer Durjan Singh on Wednesday directed Road Transport Department officials to work with income tax department , this is the first step in providing some relief to regular traffic rule offenders , stunt artists primarily students , social activists , bike wheeling kids, ladies, where they can claim tax deductions against their huge traffic violation fines under new Motor Vehicles (MV) Act. This will be applicable only if cumulative traffic fine for that FY (Fine Year not Financial year ) goes beyond 2.5Lakh rupees.
The best part of amendment is , now , repeated violations of traffic rules will not result in cancellation of driving license, such people are continuous source of income for government and police department, they help building nation, said Dr Durjan Singh.
TFA : Traffic Fine Allowance
Primarily, TFA will be decided based on the salary and vehicle's engine capacity in CC. However, there are some other factors that also affect TFA , such as the city, marital status , age , number of children , vehicle model , eating preferences veg/non-veg/vegans etc. In case the individual resides in a metro city, then he/she is entitled to an TFA equal to 20% of the basic + 33% of Engine capacity, more details awaited.Vegans will get 0.5% extra benefit.
--tax guru Shaakal Daruwala
Chief Income Tax officer Durjan Singh on Wednesday directed Road Transport Department officials to work with income tax department , this is the first step in providing some relief to regular traffic rule offenders , stunt artists primarily students , social activists , bike wheeling kids, ladies, where they can claim tax deductions against their huge traffic violation fines under new Motor Vehicles (MV) Act. This will be applicable only if cumulative traffic fine for that FY (Fine Year not Financial year ) goes beyond 2.5Lakh rupees.
The best part of amendment is , now , repeated violations of traffic rules will not result in cancellation of driving license, such people are continuous source of income for government and police department, they help building nation, said Dr Durjan Singh.
Primarily, TFA will be decided based on the salary and vehicle's engine capacity in CC. However, there are some other factors that also affect TFA , such as the city, marital status , age , number of children , vehicle model , eating preferences veg/non-veg/vegans etc. In case the individual resides in a metro city, then he/she is entitled to an TFA equal to 20% of the basic + 33% of Engine capacity, more details awaited.Vegans will get 0.5% extra benefit.
--tax guru Shaakal Daruwala
