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
Direct Tax »
 Three reasons to file income tax returns on time
  New direct tax code may have to wait until 2019
 Direct tax collection grows fastest in 7 years in FY18, courtesy GST; here’s how indirect tax reform helps
 Income Tax: Deadline for filing belated ITR of Assessment Year 17-18 is over
 Income Tax department cautions TDS deductors, says file statements by May 31 or pay penalty
 ITR-4 launched on e-filing portal; total 3 ITRs available now
 CBDT directs income tax department to hold grievance redressal fortnight for taxpayers in June
 Income tax return form-2 in Java format released for e-filing for FY2017-18
 3 ITRs available now ITR-4 launched on e-filing portal
 Businesses, small taxpayers to gain from new direct tax code
 New direct tax code to benefit corporates, income tax payers

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 2018 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