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: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: cpt :: TDS :: VAT Audit :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: VAT RATES :: ACCOUNTING STANDARDS :: form 3cd :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« News Headlines »
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?

Tax body moots clubbing exemptions with deductions to eliminate MAT
January, 25th 2008
The Direct Taxes Professionals Association (DTPA), in a recent pre-budget memorandum to Union Finance Minister, Mr P. Chidambaram, has suggested combining of all the Exemptions with Deductions under Chapter VIA of the Income-Tax Act.

The Chapter covers all deductions allowed on gross income.

It is felt that this may help eliminate the Minimum Alternate Tax (MAT) altogether, while ensuring that everyone, including charitable bodies (if they are generating a surplus) paid some amount of income-tax. MAT, under Section 115JB of the I-T Act, has been in existence for nearly 19 years

Mr S.K. Sultania, President, DTPA and Mr N.P. Jain, Chairman, Taxation Research Committee of the Association, said DTPA supported the initiative for gradual withdrawal of exemptions and deductions, and a corresponding decrease in tax rates.

According to Mr Jain, who also happens to be a senior tax lawyer, all exemptions including those under existing Sections 10, 10A, 10B, 10BB, 10BC, 10C, 10CC, 11, 13 and 13A, and the deductions may be combined under Chapter V1A.

He said a ceiling of say 80 per cent of gross total income may be stipulated for making a claim under the new Chapter VI A.

This will mean that every taxpayer will pay tax on at least 20 per cent of his gross income.

Such a measure, it is felt, will lead to real simplification of law as well as procedure.

Provision of MAT, according to the tax experts, will no longer be required as the purpose would have been otherwise achieved not only in the case of companies but also other assesses.

He said this would also raise the effective rate of taxation for improved collections.

Additionally, Mr Jain suggested that deductions claimed under Key-man insurance policies should be restricted to only premiums paid in respect of term insurance policies, and not for any other policies (like whole life endowment etc taken out in favour of the key-man).

Explaining the deductions in respect of premiums paid for such policies, he said the policy is assigned at nominal surrender value in favour of the key-man, and thus the company or the employer is able to avoid tax liability, which would have arisen at the time of its maturity.

Once the policy is assigned in favour of the individual (key-man himself), it becomes a normal policy and the maturity proceeds become exempt under Section 10 (10D) in the hands of the key-man.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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