Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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 :: articles on VAT and GST in India :: VAT Audit :: Central Excise rule to resale the machines to a new company :: VAT RATES :: list of goods taxed at 4% :: due date for vat payment :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: cpt :: empanelment
 
 
News Headlines »
 Income-tax (22nd Amendment) Rules, 2017
 All about Exports under GST
 Have you missed the due date of filing your Tax Returns?
 What you should know about income tax refunds
 Income tax scrutiny to remain limited despite surge in returns filed
 Regarding Filing of online return for first quarter of 2017-18 extension upto 01-09-2017
 Deadline to file returns extended to 28 August for biz with transitional
 GST input tax credit form
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states
 Should you file revised Income Tax returns; find out here

Govt likely to tax companies on forfeited share money
January, 28th 2008
India Inc may soon have to pay tax on capital income that arises for companies from money forfeited as part-payment for their shares.

At present, for subscribing to the share capital of a company, payments can be made in installments by an investor.

For instance, if investors apply for shares, they pay in part and are allotted the shares. But the investors have to pay the remaining amount by a stipulated date.

Any delay will mean forfeiting of the earlier installments by companies. The forfeited money remains with a company and is neither returned to shareholders nor to any government authority.

companies also do not pay tax on this money, claiming it to be a capital receipt. Tax authorities feel the money should now be taxed because it is not earned through productive activities of companies.

A proposal to this effect has been circulated by the income tax department and is likely to be taken up by Budget 2008-09. To make companies pay tax on forfeited money required an amendment to Section 2(22) of the Income Tax Act, 1961, which deals with dividend income of companies.

This Section can be amended to include the amount of share money forfeiture within the scope of income, a government official pointed out, adding that, in many countries, such capital income is already being taxed.

The proposal has been made at a time when more and more companies are gong in for listing shares on the domestic bourses and retail investments in the country are at an all-time high. The move would also go a long way towards filling the government coffers. Corporate tax rose 37.22% to Rs 1,32,948 crore until January 15.

It also comes at a time when tax concessions to the corporates are on the governments radar, especially in view of the sectors stellar performance.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

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