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: due date for vat payment :: VAT RATES :: form 3cd :: ACCOUNTING STANDARDS :: VAT Audit :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: empanelment :: TDS :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT
« Direct Tax »
 Pune region tops in direct tax kitty growth
 RBI releases draft directions on hedging of commodity price
 Unexplained deposits in focus, taxmen ordered to go all out in the next three months
 Why India’s corporate tax rate should be cut
 Best ways to save tax under section 80C
 Govt may exceed direct tax collection target of FY18 Budget estimates
 CBDT relaxes MAT provisions for companies under corporate insolvency
 CBDT relaxes norms for MAT on firms facing insolvency
  Income-tax deduction from salaries during the financial year 2017-18 under section 192 of the Income-tax Act, 1961
 CBDT to appeal for revival of certain deregistered companies
 How the new tax regime fared in India these last 6 months

Progressive steps to fiscal stability
March, 15th 2012

The Government's efforts to unleash next generation' tax reforms seem to have finally made some headway with the Parliamentary Standing Committee on Finance presenting its report on the Direct Tax Code Bill, 2010 (DTC), with the aim of rationalising tax rates, expanding the tax base and minimising exemptions.

After several rounds of consultation and discussion with the stakeholders, the panel, under the chairmanship of senior BJP leader Mr Yashwant Sinha, submitted its report to Parliament on March 9. The report is expected to pave the way for debate, substantial modifications and passage of the DTC Bill, which seeks to replace the Income-Tax Act, 1961.

The panel has laid emphasis on tapping the potential, unaccounted and concealed income to bridge the revenue gap as against just widening the tax base. Simultaneously, it has strongly recommended measures in respect of accountability of tax officers and evaluation of tax policy and its effectiveness, while ensuring that the supreme authority of Parliament is not compromised.

The key highlights of the report are succinctly as under:


The panel recommends that the DTC should be:

Simple, self-contained and easy to comprehend, instead of the present incoherent nature of chapters and schedules

Lucid, unambiguous and clarity in provisions, leading to greater tax efficiency, compliance and reduced tax avoidance

Minimise compliance and transaction costs of the tax department, with renewed focus on higher-income groups, tax avoidance and untaxed or concealed income


Raising the income tax exemption limit to Rs 3 lakh and wealth tax ceiling to Rs 5 crore, with an inbuilt mechanism to adjust for inflation be embedded in the statute itself; retaining the corporate tax rate at 30 per cent.

Introducing moderately higher tax rates for taxpayers in the higher bracket.

Emphasis on general principle that all incomes and profits should be taxed, with exemptions, if any, being the exception. Thus, the panel has approved implementation of investment-linked holiday, and removal of exemptions as well as profit-linked tax holiday scheme.



Clearing the air of uncertainty on GAAR, the panel rightly plans to implement it cautiously by incorporating the following safeguards and ensuring that such provisions do not lead to litigation, which is already at a peak:

The current draft provides wide-ranging powers and ammunition to the tax authorities to demand tax in situations where even a genuine or bonafide transaction could be challenged; thus, it is widely feared to be misinterpreted and misused. The Panel recommends bringing greater clarity and precision in the scope, with an aim to deter tax avoidance rather than penalising tax-payers.

The onus should be on the tax authorities to prove that there was a motive to avoid tax (and not on the taxpayer). It has also proposed an independent unbiased body (as against the collegiums of three tax commissioners) to approve invocation of the GAAR provisions; this will ensure the process is fair.

There will be suitable grandfathering provisions to protect the interest of the tax-payers who have entered into structures/ arrangements under the existing law.

To uphold the credibility of India, its important to ensure that treaty override' provisions or uncertainty with regard to applicability of tax treaties are removed.


In line with best international practices, the panel has recommended the provision of tax consolidation for group entities at the option of the tax-payer, thereby eliminating cascading taxation levels on income generated within a group.

The powers and accountability of the tax department are:

Enforcing accountability of the department, to ensure no unreasonable tax demands are raised, with appropriate disciplinary actions against such officials, and

Review of relevant clauses with the intent to minimise the extent of discretionary powers made available to the tax department.

The panel has thus laid down the guidelines and principles to be considered while revising the DTC. However, it is believed that the government, pending approval of the DTC Bill by Parliament, is likely to introduce some measures concerning taxes in the Budget.

India's tax revenues have been around 19 per cent of the GDP, compared with 30-35 per cent in the developed / matured economies and around 23 per cent among developing countries. The Government has already taken significant measures to tap and recover unaccounted / concealed money. This should certainly bridge the revenue gap and also bring the precious and much desired capital back into the country to fuel growth and employment.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and 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