Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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
Popular Search: form 3cd :: due date for vat payment :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: VAT Audit :: cpt :: empanelment :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
News Headlines »
 How to save income tax? Here are 6 investments with tax free income
 10 Top salary deductions that can save tax for you
 What are the tax saving options beyond Section 80C?
 The penalties for not paying tax on time
 How to make your salary tax efficient
 I-T Department may go into overdrive this quarter
 Ways to reduce the TDS deduction from your salary
 4 Tips for choosing who prepares your 2017 Tax Returns
 Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-1 to 6 & applicability of section 143(1)(a)(vi)
 Price Waterhouse gets 2-year ban in Satyam case
 How to save income tax under section 80C

FinMin mulls cut in tax surcharge
January, 25th 2008
The existing 10 per cent surcharge on personal and corporation income tax may be halved or scrapped entirely in the coming Budget.
If undertaken, the move will reduce the tax burden of a certain category of individuals, firms and companies by between 1.54 and 3.09 percentage points from fiscal 2008-09 onwards.
The finance ministry is considering this move on account of better levels of tax compliance and the ongoing buoyancy in direct tax collections, a senior government official told Business Standard. The surcharge, a sort of tax on tax is paid by 2-3 million, of the total 31.9 million assessees who are liable to pay tax.
A demand to scrap the 10 per cent surcharge has been made by industry associations.
Currently, the total peak tax incidence on individuals, firms and corporations works out to 33.99 per cent, which is inclusive of the 10 per cent surcharge and education cess of 3 per cent on the peak rate of 30 per cent. If the surcharge is halved, the tax incidence will come down to 31.54 per cent. If it is scrapped, the incidence will be reduced to 30.9 per cent.
About 2-3 million assessees, such as individuals in the higher income bracket, Hindu Undivided Family (HUF), firms and domestic companies will be the beneficiaries of this move. Surcharge is levied at the rate of 10 per cent on individuals with annual income over Rs 10 lakh and on domestic companies and firms, having an annual income of over Rs 1 crore.
International companies, liable to pay tax in India, pay a lower surcharge at the rate of 2.5 per cent on a higher corporation tax rate of 40 per cent.
Surcharges, originally envisaged as temporary imposts, were first levied by the central government in 1991-92 (taken off in some years also) to meet unplanned government expenditure or to fund budgetary deficit as tax revenue collections were low in India.
Over the past 17 years, the surcharge has varied between less than 1 and 15 per cent. The surcharge was increased from 2.5 per cent to 10 per cent in 2005 for individuals and domestic companies.
If the proposal is implemented, the government may have to forgo over Rs 4,000 crore to Rs 8,000 crore annually.
However, it will be a reward to tax payers, whose voluntary compliance is one of the factors for the over 40 per cent growth in direct tax collections in the last two years.
The surcharge fetched around Rs 6,100 crore in 2006-07, Rs 4,600 crore in 2005-06 and Rs 3,300 crore in 2004-05 to the government. Surcharge collections are expected to exceed Rs 8,000 crore in 2007-08.
Surcharge was meant for specific purposes, these purposes appear to have been taken care of. So, removal of surcharge will be a welcome move, said senior tax consultant.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

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