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 VAT and GST in India :: Central Excise rule to resale the machines to a new company :: empanelment :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: cpt :: TDS :: due date for vat payment :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: VAT RATES
 
 
« Direct Tax »
 CBDT committee to review 'naming, shaming' of tax defaulters
 CBDT committee to review ‘naming, shaming’ of tax defaulters
 Can we measure demonetisation’s impact on income tax collections?
 CBDT signs 2 more advance pricing pacts
 Income tax returns: How to calculate income from house property
 CBDT proposes new accounting standards for real estate firms
 1 lakh entities face I-T action as ‘clean money’ drive gains pace
 Here are 4 things to know about how CBDT improves ease of doing business by issuing PAN and TAN within 1 day
 Online platforms make tax filing easy, help fill details automatically
 Delhi HC refuses to stay tax case against Young Indian
 CBDT issues draft ICDS on real estate

Centre may modify the direct tax code
December, 30th 2009

The government is likely to modify the draft direct tax code to retain tax shelters and principal repayments for home loans to make the new code more attractive for the average Indian, said a Finance Ministry official.

According to the proposed direct taxes code there would be no tax incentives for loan-funded house purchases that are for personal use. The code is expected to become operational from April 2011.

Presently, taxpayers are allowed to deduct interest up to 1.5 lakh every year from their incomes. Besides this, the repayment of principal amount subject to a maximum of Rs. 1 lakh is also exempted under section 80C.

The draft code has proposed to increase the maximum limit under section 80C from 1lakh to 3 lakh, but the list of eligible expenditure/savings does not include principal repayment. The code also restricts interest deductions to houses that have been financed for renting out and where such income is included in the income of the assessee.

At present, if a home buyer in the highest 30% tax slab were to avail the maximum tax exemption available on home loans then government loses over Rs 77,000 in tax.

The proposed discontinuation of the tax benefits has faced widespread criticism. The Finance Minister, Pranab Mukherjee has indicated his willingness to review the debatable issue. He has had talks with senior officials of the apex direct tax body, Central Board of Direct Taxes (CBDT), on the proposed alterations to make them widely accepted.

The UPA-led government has lined up reforms of both direct and indirect tax structures that have a plethora of exemptions. It is considering implementing a comprehensive goods and services tax on the indirect taxes side.

The tax reforms are aimed at increasing compliance and expanding the tax base by discontinuing certain exemptions. The government hopes to redraft the new code quickly in order to present it in the next parliament session.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

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