Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: list of goods taxed at 4% :: empanelment :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ACCOUNTING STANDARD :: cpt :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ACCOUNTING STANDARDS
Budget Extravaganza »
 High time to prioritise non-tax revenue in the Budget
 Govt may abolish dividend distribution tax in budget
 Budget making in the GST era: paradigm shift
 Budget 2018: Section 80C limit may be increased
 Middle Class Can Hope For A Big Tax Relief In Budget 2018-19, Says Report
 Startup investors seek abolition of angel tax in Budget 2018-19
 Budget 2018 must avoid the temptation to bolster government revenues myopically
 How GST has taken away the wind out of the Union Budget presentation
 Seeks to amend certain customs notifications in pursuance to change made in Budget 2017-18.
 New look finance ministry team to frame contours of Budget 2018
 How presenting the Budget early seems to be paying off already

Tax relief individuals get in the Budget
March, 02nd 2010

This budget came as a pleasant surprise for the middle income taxpayer. The Finance Minister has increased the income tax slabs. He has changed the tax slabs for men, women and senior citizens. The consumer, already burdened by spiraling prices, will welcome these changes in the tax structure with open arms. However, with the introduction of sweeping changes in the taxation methodology on April 1, 2011 via the Direct Tax Code, this happiness could be a limited one.

Changes in tax slabs

The highest tax slab has been increased from Rs 5 lakhs to Rs 8 lakhs, providing a tax relief of Rs 20,000 to Rs 50,000 for the taxpayers.

Increased limit of deduction under Section 80C

Additional deduction under Section 80C

The Finance Minister has also increased the limit of deduction available under Section 80C. He has allowed an additional investment of Rs 20,000 in infrastructure bonds taking the total limit under Section 80C from the current Rs 1 lakh to Rs 1.2 lakhs.

Besides investments in Employee Provident Fund and principal of home loan, there are a large number of instruments like post office saving schemes and equitylinked savings schemes where you can invest to claim deductions. By this provision, the government has enabled investors to invest in debt instruments issued by entities controlled by the government.

This will help increase the national savings rate. The Economic Survey issued last week had observed that the gross domestic savings stood at 32.5 percent of the GDP in 2008-09, while the gross domestic capital formation (investments) was 34.9 percent. The rates of domestic savings and investments are now on par with the world's fastest growing economies.

Through this provision the Finance Minister has put more money in the hands of the middle income segment, raised domestic money for the very important infrastructure sector, and reduced the dependence on external funding for infrastructure.

Simplification of direct tax laws

Towards simplification of taxes

The Finance Minister has emphasised on the long-term road map of simplification of direct tax laws. This year's budget introduces a two-page Saral-2 returns form for individual salaried assessees, working towards a simpler tax process.

Further, the budget emphasised again on the need to implement the Direct Tax Code on April 1 next year. So, next year onwards all incomes whether it is salary, longterm capital gains or short term gains will be taxed at a uniform tax rate.

Further, under the EET (exempt, exempt, tax philosophy ), investors have to get used to paying tax on all types of gains from investments whether received every year regularly or at the time of redemption. Meanwhile, for this year alone, investor tax-payers can enjoy the double benefits of lower taxation and exemptions on gains from investments.

Investment strategy towards equities

Investment strategy

The stock markets that were very worried before the budget welcomed the provisions by trending upwards. Individual investors can now renew focus of their investment strategy towards equities.

With the promise of fiscal discipline and an indirect stimulus of tax savings the growth trajectory is now on a firm path.

Barring any international hiccups the stock markets will continue their forward march. Hence, picking up good stocks and increasing allocation to equity will work in giving good returns in 2010.


Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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