Sir,
Government from time to time formulates generous saving schemes for the benefit of poor employees. These schemes encourage the employees to go in for laying sometyhing against a rainy day. These schemes on their maturity come to the rescue of the employees during needy hours.
One of the such schemes is postal life insurance. The special feature of this scheme is that it is a tax free scheme and the premium deposited in this scheme can be reflected as the amount against standard deduction.
However, it is bizarre to understand that for the last few months Govt has levied tax on the PLI premium at an exorbitant rate of 10.5%. One fails to understand the logic behind this coexcive move on the part of those who are at the helm of affairs. It is a paradox that on one side the premium deposited in this scheme can be shown as saving undr section 80 (c) of income tax rules, and is exempted from tax but on the other side, the same premium is put under another form of tax.
It neither carries any academic logic nor any legal logic and employees are forced to wrap up this scheme and go for some other mode of scheme.
It is high time for the concerned to take a relook on the whole gamut of situation and withdraw the decision of invoking this order to free the employees from this unncessary burden.
Yours etc…
Ramesh K Raina
(Wanpoh)
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