Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: due date for vat payment :: form 3cd :: empanelment :: cpt :: VAT Audit :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: TDS
 
 
Direct Tax »
 Tax liability on taxable income: Clarification from CBDT is a must
 Income Tax Returns (ITR) filing for salaried staff, others: Advance tax payment deadline nearing, pay or face penalty
 To avoid extra TDS, give tax-saving proofs
 TDS on Rent under section 194I of Income Tax Act
 New direct taxes code aims for lower rates, wider base
 Towards a new direct tax system
 Central Board of Direct Taxes (CBDT) signs two Indian Advance Pricing Agreements (APAs) in November, 2017
 CBDT asks I-T to slap higher tax rate on fraudulently revised ITRs
 CBDT to accept transfer pricing MAP sans riders
 CBDT relaxes norms for MAP & APAs
 CBDT directs I-T Dept to closely examine all revised ITRs filed after demonetisation

PM Narendra Modi seeks simpler rules to raise direct tax share from '07 low
October, 10th 2017

India is reviving attempts to overhaul its half-century-old direct tax laws as it looks to increase the share of collections from the lowest in a decade.

Prime Minister Narendra Modi’s government is working to ensure that tax payers don’t need to submit multiple returns and have quicker options of redress should a dispute arise, said people familiar with the matter. A new bill will probably be ready by early 2018 for stakeholder comments, they said, asking not to be identified citing rules on speaking with the media.

About 10 trillion rupees ($153 billion) -- some 63 percent of India’s annual budgeted revenue or the size of Qatar’s economy -- are locked in litigation due to byzantine tax rules and varying interpretations. Costly compliance and loopholes keep about 99 percent of the population outside the income tax net, making India one of the worst places in the world if you are a tax payer.

"Tax rates in India are not high, nor are they unreasonable, when compared with other jurisdictions," said Daksha Baxi, executive director at Mumbai-based tax consultancy Khaitan and Co. What makes the system difficult to navigate is "the process and the manner in which the tax provisions and rules are administered," she said.

India has attempted earlier to combine various laws into a simple tax code. However, previous efforts failed as the former government lacked the numbers in parliament while Modi’s administration concentrated on indirect levies and introduced a nationwide goods and services tax that has united India’s 1.3 billion population into a single market.

The Income Tax Act dates back to 1961 and still holds echoes of the past where the economy was closed to the world, relying instead on high domestic tax rates and an invasive tax office to help fund health and education for the masses.

"The act has undergone thousands of amendments in last few decades and has virtually become like a patchwork," said Rahul Garg, partner and leader, direct tax, at PwC India. "The new law should be modern and incorporate digital changes and use use of technology."

Modi seems to be heeding his call.

Any inquiries from the tax office will be emailed rather than have the tax official show up at your door, and tax payers will be able to file disputes or appeals online instead of repeated rounds to the government, the people said. Clarity will also be provided on penalties for failing to furnish tax returns, comply with notices or concealment of income, they said.

Global funds who pay withholding tax on investments should be able to get by with just one payment receipt, rather than having to file a separate tax return. Rules for transactions involving related entities --- covered under the so-called transfer pricing mechanism that has embroiled companies including Cairn Energy Plc and Vodafone Group Plc in lengthy disputes -- may be simplified too.

The government is also considering reducing the number of tranches for advance tax payments. Companies currently have to pay out in four annual installments.

‘Misdeeds of the Dishonest’

Surabhi Ahluwalia, spokeswoman for the Central Board of Direct Taxes, declined to comment on the government’s plan. Modi last month urged tax officials to improve the country’s tax administration by 2022 by focusing on electronic assessments, resolving appeals with the help of technology and boosting revenue.

Read: Instagram Posts Will Soon Help Sniff Out Tax Fraud in India

The administration "is working towards creation of an environment which shatters the confidence of the corrupt, and instills confidence and trust among the honest taxpayer," Modi told tax officials, the government said in a Sept. 1 statement. "The honest cannot continue to pay the price for the misdeeds of the dishonest."

 

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

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