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 INPUT TAX CREDIT IN VAT :: empanelment :: TDS :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: VAT Audit :: due date for vat payment :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: form 3cd
 
 
« News Headlines »
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?
 New income tax rules to curb unaccounted cash

FM plans hard look at tax exemptions
November, 11th 2006

Finance minister P Chidambaram is likely to take a hard look at tax exemptions in the forthcoming Budget. He is, however, unlikely to introduce any new taxes or hike tax rates to raise additional resources.

According to the Budget document for the current fiscal, the total revenue foregone due to various direct and indirect tax sops was estimated at Rs 1,58,661 crore in 2004-05. Every tax concession, although introduced with a specific purpose, needs to be reviewed on a periodic basis to make the tax system more efficient, Chidambaram said at a meeting of the consultative committee on finance on Friday.

The minister said tax sops needed to be pruned to meet the targets of Fiscal Responsibility & Budget Management. The FRBM Act requires the revenue deficitat 2.6% of GDP in 2005-06to be cut 0.5% a year and eliminated by 2009. Likewise, the fiscal deficit, at 4.1% of GDP, is to be trimmed by 0.3% of GDP a year to 3% of GDP by 2009.

Stating that Indias tax-GDP ratio was one of the lowest in the world, he also said it was imperative to increase it. The draft paper to the Eleventh Plan assumed it to touch 13% by 2011-12. While the tax-GDP ratioat 10.5% in 2005-06is estimated to go up to 11.2% in 2006-07, it is well below the 13% target assumed in the Eleventh Plan that begins next fiscal.

To generate adequate resources for funding the countrys infrastructure needs, Chidambaram said tax incentives needed to be pruned. This will help in increasing the tax base and also enable us moderate the tax rates significantly, he said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

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