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 »
 Income-tax (5th Amendment) Rules, 2018 - Notification under section 9A (3) of the Income-tax Act, 1961 in respect of Fund Manager Regime
 Income Tax department warns salaried class again filing wrong ITRs
 ITR-1 form for AY 18-19 now available for e-filing
 New Income Tax Return Form for Salaried Class available in Portal
 Income Tax Return: ITR-1 ready for e-filing, says I-T department
 6 Tax changes you need to keep in mind while filing ITR for FY17-18 Income Tax Return efiling
 Income-tax (5th Amendment) Rules, 2018
 Last-minute tax tips for late filers
 What demonetisation did to tax collections
 Income–Tax (Fourth Amendment) Rules, 2018
 Want your income tax refund early? Follow these 10 steps while filing returns

Govt hints at tax rates review as revenues, compliance rise
December, 07th 2007
Increase in maximum rate on personal I-T unlikely


On the whole, we are not terribly away from reasonable international comparison. Parthasarathi Shome



With the general budget round the corner, the Finance Ministry on Thursday held out some hope for taxpayers by indicating that it could review direct tax rates and structures in the coming days on the back of buoyant revenues and some increase in voluntary compliance.

A further dose of good news is that the Ministry has virtually ruled out any increase in the maximum marginal rate on the personal income-tax front as that may affect voluntary compliance.

We cannot have marginal rates that are too high, Dr Parthasarathi Shome, Advisor to the Union Finance Minister, said at a conference organised by tax advisory firm BMR & Associates here on Thursday.

While indicating that high marginal rates would affect voluntary compliance, Dr Shome noted that the Finance Ministry was now in a position to track voluntary compliance and see if it was increasing or not.

The maximum marginal rate on the personal income-tax rate was 30 per cent.

He said India had the most competitive rates as far as the direct taxes were concerned.

However, the taxpayer base, on the direct tax front, was not large as one would like it to be. This was due to the fact that quite a large portion of the economy was still at subsistence level.

Over the past several decades we have moved away from very high marginal rates to commonly acceptable marginal rates. On the whole looking at taxation in America, Europe and East Asia, if I look at corporate and personal combined, we are not terribly away from reasonable international comparison, Dr Shome said.

Admitting that the revenue department was reaping some benefits of tremendous buoyancy in the economy, Dr Shome highlighted that quite a bit of this was also due to tax administration improvements and some increase in voluntary compliance of taxpayers.

The Centres direct tax revenues were growing at about 45 per cent on a year-on-year basis so far this fiscal.

Dr Shome also indicated that comments would soon be sought from public, tax experts and industry associations on the new income-tax code to make the overall structure simple. I believe, it will be a model income-tax code.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

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