Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: due date for vat payment :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: form 3cd :: list of goods taxed at 4% :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: cpt
 
 
News Headlines »
 Did you know? The tax exemption on your HRA
 Income Tax Department expands list of deposits, transactions under scrutiny
  Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962
 Master Directions on Access Criteria for Payment Systems
 RBI-Scheduled Bank's Statement of Position in India as on Friday, January 06, 2017 (Revised)
 3 Big Mistakes To Avoid This Tax Season
 The Top 5 Tax Stories Of 2017
 Are multiple service tax rates in the offing?
 All you need to know about claiming tax break on HRA
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017

Govt plans to link tax with inflation rate
October, 06th 2008

Inflation might bring relief for taxpayers in future. The government is considering a proposal to link taxable income with inflation rate. Discussions are on among policymakers in North Block on how salaried employees, especially pensioners, can be protected from price rise which, in recent times, has brought down the purchasing power of common man.

North Block sources told SundayET that the draft proposal not only intends to re-introduce the concept of standard deduction but also talks of possibilities of linking tax slabs with inflation rate. The concept is not new. In the US, the personal exemption amount, standard deduction, federal income-tax brackets and many other tax-related numbers are annually adjusted based on inflation data.

The proposal is in the initial stages and has been discussed within the ministry. However, since the government has already had its share of budget presentations, the proposal may only get a final go ahead after the general elections, a senior finance ministry official said.

Tax consultants feel such a proposal is the need of the hour. It will come as a big relief for pensioners (senior citizens) who earn fixed income. The high inflation rate has considerably reduced the purchasing power of the common man. The restoration of standard deduction (linked to the inflation data) will only create a level playing field for the salaried class, said Vikas Vasal, executive director of KPMG India.

The argument is based on the premise that if professionals and businessmen are allowed deduction for full expenses relating to their professions/business, then why deny deduction to salaried individuals for employment-related expenses.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions