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 :: list of goods taxed at 4% :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: Central Excise rule to resale the machines to a new company :: TDS :: cpt :: ACCOUNTING STANDARD :: VAT RATES
 
 
News Headlines »
 Seriously, start planning now for 2015 tax returns
 New tax computation norms from FY16
 Amendment to notification no. 20/2014-STdated 16.09.2014
 Instructions regarding issue of summons in Central Excise and Service Tax matters
 Clarification Regarding applicability of section 143(1D) of Income Tax Act, 1961 - Order-Instruction - Dated 13-1-2015 - Income Tax
 How you can use deductions to optimise tax benefits
 Mutual funds pitch for ELSS as tax deadline nears
 Clarification regarding applicability of section 143(1D) of the Income-tax Act, 1961
 Result of the Information Systems Audit [ISA] Assessment Test held on 27th December, 2014 is likely to be declared on 19th January, 2015.
  Filing of Reconciliation Return for the Year 2013-14
 New retirement funds are no different from tax-saving ELSS schemes

High inflation: Token I-T exemption limit hike likely
January, 22nd 2010

The government is exploring an increase in the income-tax exemption limit for individuals to compensate for the recent spike in inflation, but revenue considerations and the fact that the limit was hiked sharply in 2008-09 could force it to maintain status quo or give just a token hike.

The proposal has figured in discussions among policymakers as they debate ways to give some relief to households from rising prices. Retail inflation as measured by the consumer price index for industrial workers was 13.5% in November 2009. A decision is likely over the next three weeks as the budgetmaking process gathers pace.

It (the decision) will depend on revenue considerations that are weighing high on policymakers agenda as the government is under pressure to signal a return to fiscal consolidation, a government official told ET. The fiscal deficit for the current year is pegged at a 16-year high of 6.8%.

In general, the trend is to give general relief to taxpayers, and a marginal hike is unlikely to have any significant impact on the finances of the government, especially if it is looking at hiking excise duty and service tax rates, said D K Joshi, principal economist at rating agency CRISIL.

The government had substantially hiked the exemption limit in the Union Budget 2008-09 followed by a token Rs 10,000 hike in the final budget for 2009-10, after the United Progressive Alliance came back to power last year. Over the four years to fiscal 2009-10, the exemption limit has risen at a compounded average growth rate of 12.5%, well ahead of the inflation in this period but less than the current inflation level. Food inflation is running at over 18% right now.

Keeping the high inflation in view, there are expectations that the slabs would be increased, and provide some more income in the hands of people ... slab rates require a complete relook as the basic threshold is very low and the basic tax rate gets triggered at a very low income level in comparison with global practices, said Vikas Vasal, partner, KPMG.

There is also a thinking within the government that since the new code proposes to include all perks, including that of government employees in the total income, the exemption limit needs to be raised and this budget may be an opportune time to at least indicate the government intent in that direction, officials said.

The finance ministry is holding consultations with various departments and ministries on their anticipated expenditure for 2010-11 and is expected to arrive at a final figure in the first week of February.

No PAN, more tax

Get ready to cough up higher tax up front from the next fiscal in case you do not quote the Permanent Account Number (PAN) in transactions subject to tax deduction at source.

Tax at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS where the PAN of the deductee is not available, the finance ministry said in a statement on Wednesday. The provision will have major implications for small contractors, small businesses, professionals and investors who earn interest from fixed deposits.
The rate of TDS in these cases ranges from 1% to 10%. The new provision related to tax deduction at source (TDS) under the Income Tax Act 1961 will become applicable with effect from April 1.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2015 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

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