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: due date for vat payment :: VAT RATES :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: VAT Audit :: cpt :: TDS :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4%
 
 
Direct Tax »
 6 tax tasks you should finish by March 31
 CBDT to waive interest if tax demand paid in retro cases
 CBDT to waive interest if tax paid in retrospective cases
 New move to settle retrospective tax cases, CBDT offers interest liability waiver to firms
 I-T department guidelines for interest waiver in specific cases offer tax relief
 ICDS provisions to prevail over judicial precedents: CBDT
 CBDT forms committee to check absconding I-T dept officers
 Central Board of Direct Taxes asks taxman to make all out efforts to recover arrears
 CBDT to honour honest taxpayers
 Startups in the docks over marked down valuation tax as March 31 nears
 CBDT asks taxman to make all out efforts to recover arrears

New tax laws need to remove ambiguity among investors
January, 28th 2013

The finance minister, while speaking in South East Asia, promised that India would maintain its record of a stable tax regime in the future. Certainly, for more than a decade now, the tax rates have been stable, especially if one subscribes to the euphemistic notion that surcharges on tax are not actually tax.


If you are a small saver trying to save and invest for the future, then this is a time of considerable uncertainty, all of it emanating from the gap what the government says it’s going to do and what it actually appears to be doing.

The biggest examples are the tax breaks that are available for long-term investments and for retirement savings. At present, tax break investments under Section 80C are completely exempt up to and including the final redemption.

On the one hand, there’s talk of enhancing the amount available under Section 80C, perhaps to R1.5 lakh. On the other hand, if we are to believe authoritative statements made by the current and previous finance minister, then the Direct Taxes Code will replace the current tax laws soon. In fact, at the time of the last budget, the promised date was April 1, 2013.

So which is it going to be? Come April 1, will we have a Rs. 1.5 lakh Section 80C or an entirely new law? What’s more, the DTC is supposed to do away with the current style of tax exemptions and bring in a new system whereby the eventual withdrawals from tax-exempt investments will be taxed at whatever tax rate is then applicable.

This completely changes the arithmetic of long-term savings. It could, for example, mean a big hit on your retirement savings when you retire. Certainly, one would need to save at a higher rate if this is to happen. But is it going to happen? No one seems to be sure any more. And that’s a problem.

 
 
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