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: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: VAT Audit :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: empanelment :: list of goods taxed at 4% :: TDS :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: VAT RATES :: due date for vat payment
 
 
Direct Tax »
 CBDT notifies new scrutiny notices with e-facility for taxpayers
 GST is a transformational business process reform. All companies will have to change
 GST Council relaxes return filing rules for July-Aug
 Here's how self-employed individual can file tax return with ITR4
 CBDT mulling new system of jurisdiction-free I-T assessment to curb corruption
 CBDT draft notice on computing tax liability of foreign firms
 CBDT forms task force for jurisdiction-free income tax assessment system
 Aadhaar must for filing returns from July 1: CBDT
 Aadhaar mandatory for filing I-T returns and obtaining new PAN card from July 1: CBDT
 Central Board of Direct Taxes cuts profit margin for safe harbour rules
 What is TDS and how does it work?

Preserve Code's integrity while amending direct tax law
October, 30th 2009

As suggested amendments to the draft direct tax code keep pouring in from industry, individual taxpayers, and even the tax department, the government must bear in mind the integrity of the final Bill that emerges from the process of consultation.

Many of its provisions that kicked up much controversy and angst particularly among corporates would be diluted, and these include the 2% minimum alternate tax (MAT) on gross assets.

Provisions affecting individual taxpayers such as taxation of savings and perks (housing provided to civil servants is a prime candidate), may also undergo some dilution.

The CBDT has suggested amendments to provisions relating to capital gains, double tax avoidance agreements (DTAA), general anti-avoidance rule (GAAR) as well as taxation of charitable organisation and foreign companies operations in India. Some of these instances such as DTAA may only require some clarification, and not really changes, to address concerns about the changes in the tax environment.

In any case, the explicit objective of the direct taxes code to provide a stable tax regime in the medium to long term is welcome. Frequent changes in tax laws, in any commercial law, for that matter, affect long term planning of businesses as well as optimum use of the assets.

The governments decision to put out a discussion paper before finalising sweeping changes to the direct taxes law is welcome. Consultations with stakeholders must precede finalisation of any Bill. It will, without doubt, delay the process of amending extant laws or putting in place new ones.

But some delay is preferable to frequent amendments. In the case of tax laws, sweeping changes to original proposals would upset revenue growth projections, and therefore the revenue departments aversion to take on board changes suggested by stakeholders is understandable.

The government can expand the tax base only by reducing exemptions and checking avoidance and evasion. And compliance will improve only if the tax laws are simple, tax rates moderate and compliance costs low.

The revenue department would be better advised to take a holistic view of the demands of stakeholders and ensure the new tax code is fair to all, including, of course, to the exchequer.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

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