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 »
 Know all about how to file ITR FY 2017-18
 Government extends sale of pre-GST goods with stickers of revised price till July 31
 All 7 ITR forms for assessment year 2018-19 activated for e-filing: Income Tax Department
 Check if new salary structure is income tax efficient
 GST refund drive extended till June 16
 5 income tax returns filing mistakes you must avoid
 Your complete guide to file income tax return
 Input Tax Credit refund drive till June 14
 File Your Income Tax Return for FY 2017-18 Immediately, Know Why
 Which ITR form to file if income is in dollars?
 5 investment lessons to maximize returns; here is all you need to know

New govt may change direct tax rates: Ernst & Young
May, 12th 2009

Direct tax rates may be tinkered by new government that may present its first budget later next month, according to a study.
This may be in line with changed taxation policies followed by most governments worldwide to beat slowdown and recession that set in following global financial turmoil.

In February this year, when stand-in finance minister Pranab Mukherjee presented the interim budget, he did not make any changes in either corporate or individual tax rates.

Even in the stimulus packages, India concentrated on increased government spending and indirect tax rate cuts. In this scenario, tax measures will assume greater significance for the next government, Ernst & Young (E&Y) said on Monday in a report on tax trends in fiscal stimulus packages across the world.

The new government would do well to introduce measures such as providing for carry back of losses, possible reduction in corporate and personal tax ratesperhaps by doing away with surcharge, accelerated bonus depreciation for new plant and machinery, among others. Such measures will accelerate investments, boost productivity and employment, says Satya Poddar, partner, E&Y.

Other analysts, when contacted by Financial Chronicle to get their views on tax policy of the next government, said a lot would depend on which political parties are going to constitute the new government.

Pratik Jain, executive director, KPMG, said though the tax policy would be driven by the new governments focus, every government would like to align the existing tax rates if the goods and services tax has to be introduced by 2010.

Depending on the prevailing situation, the government may consider increasing the service tax rate, while excise duty may continue at the same rate till economy revives.

Rahul Garg, executive director, Pricewa-terhouseCoopers, said, Cut in tax rates or change in tax slabs does not lead to more demand as people prefer to save rather than spend and create demand. The government would rather provide money through the monetary policy. It cannot compromise on tax collections, as it needs money for immediate funding of infrastructure projects. .

Poddar said the depreciation rates in India are very restrictive and the government could have used this opportunity to increase the depreciation rate. Like in many nations, India could have provided tax incentives to equipment and technology used in promoting green energy, he added.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

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