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
Latest Expert Exchange
News Headlines »
 Here’s all you need to know New Income Tax return for salaried class available on IT portal
 What to do if you missed the (second) tax deadline
 Income-tax (5th Amendment) Rules, 2018 - Notification under section 9A (3) of the Income-tax Act, 1961 in respect of Fund Manager Regime
 Income Tax department warns salaried class again filing wrong ITRs
 ITR-1 form for AY 18-19 now available for e-filing
 New Income Tax Return Form for Salaried Class available in Portal
 Income Tax Return: ITR-1 ready for e-filing, says I-T department
 6 Tax changes you need to keep in mind while filing ITR for FY17-18 Income Tax Return efiling
 Income-tax (5th Amendment) Rules, 2018
 Last-minute tax tips for late filers
 What demonetisation did to tax collections

More than 1 crore taxpayers may go out of taxnet
April, 04th 2009

BJP's poll manifesto promising to exempt income of up to Rs 3 lakh from income tax is likely to put a major dent on government's already strained revenue collection which has been twice revised on the lower side and is still struggling to meet the new estimates.

The saffron party's populist measure, if implemented, may take out 1 crore to 1.25 crore taxpayers out of the taxnet from a total of 3.25 crore. The implication, said a senior official of the Central Board of Direct Taxes (CBDT), in terms of tax forego would be anywhere between Rs 15,000 crore and Rs 25,000 crore.

BJP has proposed to raise the tax exemption limit for senior citizens to Rs 3.5 lakh. It has also promised exemption of income of all senior citizens by way of pension from taxation.

With the fiscal deficit already having increased to an unmanageable level of 6% of GDP to Rs 3.27 lakh crore as per the revised estimates announced by the government in the interim budget, the new populist declarations may surely impact many of the planned flagship schemes.

The expected tax giveaway of Rs 25,000 crore is equivalent to what the government spends on some of its flagship schemes such as the Sarva Shiksha Abhiyan (budgeted allocation of Rs 13000 crore in 2009-10), the Mid-Day Meal Scheme (Rs 8,000 crore) which is the mainstay for many poor children in some parts of the country, and the the rural sanitation programme (Rs 1,200 crore).

The BJP manifesto has also sought to dispense with clubbing of agricultural income with other sources of income for determining tax liability on other income.

The party promises to put in place a low tax, low interest regime "so that people have more money and their purchasing power increases, which in turn will serve as an impetus for the economy".

However, in the downturn, say finance ministry officials, a vibrant and thriving rural market is providing the much-needed cushion to the economy for beating the slowdown, thanks to the many infrastructure development and social sector schemes unveiled in the past one decade.

With the fiscal condition of the government already tight, any further revenue giveaway could result in the government ultimately diverting funds from its key flagship schemes to fund its populist measures.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

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