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: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: list of goods taxed at 4% :: cpt :: form 3cd :: VAT Audit :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ACCOUNTING STANDARDS :: TDS
 
 
News Headlines »
 Securities excluded from GST ambit in revised Bill
 GST dilemma: Hope fades for new tax regime
 5nance.com launches tax investment platform
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 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

Government may levy income tax on dividends
March, 09th 2007

Your tax liability may see a steep rise in the coming years with the finance ministry reviewing the definition of income to consider bringing in new heads like dividends under its scope.

Income from dividends, which is at present taxed in the hands of the companies, could soon be added to your income and you may have to shell out the applicable income tax. That is just one of the additions which are in works.

But the good news is that the EET (exempt-exempt-tax) method of taxation which would have resulted in individuals having to shell out tax on interest earned on instruments like Public Provident Fund and post office deposits, or for that matter returns on mutual funds is not on the taxman's radar for now.

There are also indications that the government may, notwithstanding finance minister P Chidambaram's reiteration to the contrary on Wednesday, go slow on the move to scrap tax exemptions.

Besides dividend, sources in the government point out, there may be other items too which could be added to your income. But it's still too early for North Block officials, having just got the budget out of the way, to get down to work on the new direct tax code.

"We are looking at all the aspects. How we treat income from dividend and how we define income will be reviewed," said a senior source involved with the review of the Income Tax Act.

On EET, it's a reprieve for taxpayers. While the finance ministry received an expert committee report last year, it has decided against burdening the direct tax code with politically contentious issues. "Putting EET in the new direct tax code will shift attention from simplifying the norms," an official said.

Besides, sources pointed out, tax benefits to encourage savings are allowed in other countries too.

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

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