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: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: ACCOUNTING STANDARD :: VAT Audit :: Central Excise rule to resale the machines to a new company :: cpt :: articles on VAT and GST in India :: empanelment :: form 3cd :: ACCOUNTING STANDARDS :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4%
 
 
General »
 Don’t rush into a new tax without being prepared
 Can’t tax income from palace rent: Supreme Court
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November
 Why PM Narendra Modi must beware of the breathtaking Arthakranti tax
 Japanese firms seek easing of restrictions on funding in India
 Tax on black money: How the cookie will crumble

Only a stable tax regime can win back investors
February, 25th 2013

Never in the recent history has Budget exercise gained such significance as now, given the state of Indian economy and macro-economic challenges. The growth numbers are at nadir over the decade while fiscal deficit, current account deficit and inflation remain at alarmingly high levels. Over the years, Indian fiscal policies have depended on growth as an important peg in the economy while trying to balance investments with savings and monetary deficits with foreign capital flows. Firm international fuel prices and expenditure policy that supports consumption – subsidies, NREGA, and higher MSPs – have caused twin deficits as key economic outcome in the recent past. The slowing growth has further increased dependence on foreign portfolio flows in the fiscal arithmetic.

The expectations from the Budget are mixed. Being the last Budget before the general elections makes it a tough balancing act as one would need to please all and yet show fiscal prudence. Also, important is to get the economic engine rolling and facilitate the process to regain the normal of 7% economic growth.

The revision of the current year estimate would remain an academic exercise, driven more by numeric adjustments on the expenditure side – mainly cutting the Plan expenditure – while targets on revenues remain stretched from direct and indirect taxes. The disinvestment proceeds and spectrum allocation exercise would just make it on the last count.

Article continues below the advertisement...
One can expect an investment-focussed Rail budget to set the right tone for the Budget exercise.

The focus of the Budget would be towards incremental measures that boost revenues while facilitating growth. Furthermore, given the increased sensitivities towards global investors, the focus should be on positioning for stability and growth revival and avoid “surprises”. Stability and a pragmatic approach towards taxation and fiscal policies would go a long way in restoring trust of investors.

The small, steady yet definite change that one needs to watch is the clarity/commitment for timelines on rollout of initiatives such as IT-empowerment of the tax information network and governance, DTC, GST and UIDAI (direct benefit transfer). Any directional positive announcement on either/all would be a positive.

These are times to be positive, as India has to his credit a demonstrated delivery of stronger commitment and courage to take necessary fiscal steps when the situation demands the most. We expect an encore this time, where the Budget would certainly set the right tone.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

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