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
Latest Expert Exchange
« News Headlines »
 New direct tax code may have to wait until 2019
 New direct tax code may have to wait until 2019
 New direct tax code may have to wait until 2019
 New direct tax code may have to wait until 2019
 How to use your Form 16
 Which ITR form applies to you for financial year 2017-18?
 Income tax returns filing form-2 released; should you use it? Find out
  Are you planning to file ITR 1 form? here's how to do it Income Tax Return (ITR) filing
 30 LPA-Opening Financial Controller
 ITR form 2 in java release by CBDT for return filing by individuals
 How to file your income tax return using ITR Form-1 Income Tax efiling for AY 2018-19

Tax surcharge may be done away with
November, 22nd 2006

Cut in basic income-tax rates ruled out. New taxes unlikely to be imposed

The finance ministry is unlikely to cut the basic corporate and income-tax rates in Budget 2007. It will, however, consider doing away with the 10% surcharge on companies and a section of individual taxpayers.
A senior revenue department official said, Our tax rates are among the lowest in the world and we cannot really think of lowering them further. He added that the three slabs of income-tax were likely to continue and that no new direct taxes were expected in the Budget.
 
Finance minister P Chidmabarams statement at the recently-concluded Economic Editors Conference that there was scope for further moderation of tax rates had fuelled expectations of a cut in basic corporate and income-tax rates. At present, the peak income-tax and corporate tax rates stood at 30%.

According to revenue department officials, surcharges distort the tax structure. Eliminating these would not only reduce tax incidence on individuals and companies but also make tax administration more efficient. The 10% surcharge is applicable to individuals with income exceeding Rs 10 lakh. The income bracket for the surcharge was hiked in Budget 2006-07 from Rs 8.5 lakh a year, making it applicable to a lower number of people.

The officials said the department was calculating the impact on tax collections if surcharges were removed. The surcharge is not just on income-tax and corporate tax, but also on dividend distribution tax and income distribution tax from mutual funds, another official pointed out.

In addition to the surcharge, the United Progressive Alliance government introduced a 2% education cess on the tax plus surcharge, on both individual and corporate taxpayers. A cess on fuel is also levied to fund road construction.

The officials, however, said the government was unlikely to remove or reduce these two cesses, since they were for specific purposes in step with the National Common Minimum Programme.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 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