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 :: TDS :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: cpt :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: articles on VAT and GST in India :: form 3cd :: VAT Audit :: Central Excise rule to resale the machines to a new company
 
 
ę News Headlines »
 Will Aadhaar linkage solve India's income tax woes?
 GST roll out from July 1 will make goods cheaper: Jaitley
 Aadhaar To Be Mandatory For Filing Income Tax Return, PAN Application
 7 best tax-saving solutions which can help you save money
  No proposal to replace Income Tax with Banking Cash Transaction Tax
 How to Make Tax Saving Investments Less Taxing with an SIP in ELSS
 NRIs having only investment income may not file tax returns
 With income tax returns filing deadline near, here are 3 major things to do before March 31
 When public becomes tax gatherer
  Tax dept makes public list of defaulters owing Rs448 crore
  Filing of online return for 3rd quarter of 2016-17 extension of period thereof

I-Ts looking to improve equations
May, 15th 2007
You will soon be able to calculate your tax outgo without turning to your friendly neighbourhood chartered accountant. The finance ministry is planning to introduce a basic formula for tax calculations as part of the new income-tax code.

The new piece of legislation will have simple mathematical formulae to make it more user friendly, a senior official involved in drafting the new law said. It will replace the existing Income-Tax Act, 1961, where tax calculations are written in words.

A preview of what is in store is reflected in the changes made recently in a provision relating to tax breaks for urban cooperative banks: a formula has been used for the first time to arrive at the tax benefit that will be available to a strong cooperative bank that takes over a weak bank. The tax break is meant to speed up mergers among cooperative banks and improve their financial performance.

This is just the beginning. There are several provisions in the income-tax legislation where tax payers need an easy method to calculate their outgo and savings, the official said. Policy managers have looked at tax legislation in countries such as Canada and Malaysia, that have demystified tax calculations.

Of course, the finance ministry will have to get the law ministrys consent to make any changes be it using simple language or even mathematical formulae. Since a precedence has been set, policy managers are hopeful this can be replicated to calculate the tax outgo for different classes of tax payers. There are nearly 3.5 crore tax payers in the country.

In due course, mathematical formulaecan be used even in the Customs, excise and service tax legislation, reckon tax experts. The language in the existing income-tax law is so complex that it tests the comprehension skills of most tax payers. Indications are the new income-tax code will be shorter, simpler and easy to comprehend.

Several redundant provisions in the Act will be removed. Provisions are also set to be re-grouped for easier interpretation. An attempt will also be made to reduce ambiguities and scope for varying interpretations by courts. The idea is to minimise litigation.

The first attempt to redraft the income-tax legislation was made over a decade ago byP Chidambaram as finance minister in the United Front government. However, the Bill could not be enacted.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

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