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
« General »
 Income Tax efiling: Must-do steps to file your IT return for FY 2017-18 on time till you get Form 16
 What are the tax filing deadlines for financial year 2017-18?
 How income tax department can penalise you for under-reporting, misreporting income
 Start your tax planning right now
 Government confident of meeting fiscal deficit, tax revenue targets
 Clarification with respect to the E-way Bill System
 Here is how you can save on taxes
 Here’s all you should know about filing Income Tax Return before March 31
 Tax benefits continue to accrue even after PPF a/c is transferred to another bank
 When you may have to visit income tax department’s compliance portal
 India’s GST among most complex in world, and it is 0% tax rate that is hurting the idea

Government releases roadmap for phasing out corporate tax exemptions; no weighted deductions from April 1, 2017
November, 21st 2015

Keeping up the reforms momentum, India has a announced a detailed plan to phase out tax exemptions and bring down corporate tax rate to 25% from 30% now.

The apex direct taxes body, the Central Board of Direct Taxes, has said profit linked, investment linked and area based deductions will be phased out for both corporate and non-corporate tax payers.

It has said the provisions having a sunset date will not be modified to advance the sunset date. Similarly the sunset dates provided in the income act will not be extended.

In case of tax incentives with no terminal date, a sunset date of March, 31, 2017 will be provided either for commencement of the activity or for claim of benefit depending upon the structure of the relevant provisions of the Act.

There will be no weighted deduction with effect from April 1, 2017

In his February budget speech, Jaitley had announced that the government would cut the corporate tax rate to 25% while phasing out incentives.

A regime of exemptions has led to pressure groups, litigation and loss of revenue," the finance minister had said. "It also gives room for avoidable discretion. I, therefore, propose to reduce the rate of corporate tax from 30% to 25% over the next four years.

Even though the basic rate of corporate tax is 30%, the effective one is much lower at 23% because of incentives. Globally, corporate tax rates are much higher than those for personal income tax. In India, the income tax rate is as high as 30%.

We lose out on both counts, i.e. we are considered as having a high corporate tax regime but we do not get that tax due to excessive exemptions," Jaitley had said.

In FY15, the government is estimated to have had to forego Rs 62,400 crore in corporate taxes on account of various incentives, up from Rs 57,800 crore a year ago.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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