900 however in a similar situation where the car is owned by the employee he will have to pay tax on rs 46700 per month rs 50000 rs 3300 to rationalise this the government should bring at par the tax treatment of the employeeowned car with that of the car provided by the employer housing deduction for selfemployed currently a deduction of up to rs 2000 per month is allowed under section 80gg for the rent paid by an individual who does not receive the house rent allowance hra or who is selfemployed this limit was fixed in 1998 and has not been revisited though the rental has increased manifold since then hence it needs to be raised appropriately in keeping with inflation esops taxation for corporates the shares issued to employees free of cost or at concessional rates under the employee stock option plan esop are currently taxed on the date of allotment on the difference between the fair market value and the actual payment by the employee when employee sells the shares he pays the capital gain tax on the difference between the sale price and the price on which he paid tax at the time of allotment in case of listed shares longterm capital gain is exempt if stt has been paid the tax is currently levied on notional benefit though the actual gain is not realised by the employee it is possible that the employee does not have money at the time to pay tax or that the actual sale of shares results in a loss due to a fall in market price in the future since the tax already paid cannot be set off against the capital loss the employee suffers a double losstax outgo and loss on sale till 20045 there was a onepoint taxation at the time of sale of shares not at the time of allotment if the plan was in accordance with the stipulated guidelines for listed shares where stt had been paid no tax was levied at a time when the government wants to realise its make in india vision and is trying to attract and retain talent the companies will benefit from the restoration of the earlier taxation system 80tta deduction for interest on term deposits under section 80tta deduction is available on the interest that is earned on savings account deposits up to rs 10000 this was introduced in 201213 to provide relief to small taxpayers however this limit should be increased to rs 15000 and bring within its ambit interest on timefixed deposits as well this will not only help the individuals whose savings accounts are linked to fixed deposits to earn a higher interest but the senior citizens as well since fixed deposits are favoured modes of investment for most of them the author is leader personal tax pwc india