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: VAT Audit :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: articles on VAT and GST in India :: cpt :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: VAT RATES
 
 
News Headlines »
 6 important income tax rules for individuals which will change from April 1, 2017
 Key changes in income tax rates individuals need to look at from 1 Apr
 Provisional Enrollment under Goods and Service Tax (GST)
 Ten income tax changes that will come in to effect from April 1
 New income tax provisions you need to be aware of
 8 benefits you must know about this tax-saving mutual fund
 10 most important income-tax changes which will apply from April 1
 Delhi: 54 CAs, company secretaries on radar in I-T crackdown against black money
 10 Income Tax Rules That Will Change From April. See Details Herea
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return

Ficci wants infrastructure tax incentive back
November, 15th 2006
Industry body Ficci wants the government to re-introduce tax incentives for the infrastructure sector. 
 
In its pre-Budget wishlist to the government, the chamber has urged for restoration of tax exemption on income from investments in infrastructure projects. 
 
The goverment had this year withdrawn sub-Section 23G of Section 10, which provided for tax exemption on such income. The government had justified this by saying that interest rates and corporate tax rates had gone down. 
 
It had also cited exemption from tax on dividend income and from long-term capital gains tax in its defence. 
 
Ficci has, however, told the government that tax rates have come down only marginally (effective rate being 33.66 per cent) and that tax flows from the sector have increased as infrastructure capital companies are subject to dividend distribution tax. 
 
According to Ficci, the withdrawal has led to an increase in the cost of funds for infrastructure projects. Banks earlier used to charge a marginally lower interest rate on infrastructure projects as the net income of banks from these projects was considered tax-free. 
 
However, with the withdrawal of this section, interest rates for all infrastructure projects will increase, Ficcis memorandum states. 
 
The withdrawal would also affect the capacity of companies to raise cheap funds for future infrastructure projects, it said. 
 
There are many ongoing infrastructure projects in critical sectors for which funds have been raised on the basis of the exemption. 
 
In the absence of a grandfathering clause regarding income from existing investments in infrastructure projects, companies or infrastructure capital funds now have to pay tax on their income. 
 
This amendment is in dichotomy with the recently introduced SEZ legislation which aims to provide fiscal incentives to private investors to create infrastructure in SEZs, the memorandum says. 
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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