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: articles on VAT and GST in India :: ACCOUNTING STANDARD :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: ACCOUNTING STANDARDS :: cpt :: Central Excise rule to resale the machines to a new company :: empanelment :: VAT Audit :: list of goods taxed at 4% :: VAT RATES
« News Headlines »
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016
 Announcement - Clarifications in Respect of MEF 2016-17

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 2016 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