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 :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: form 3cd :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: cpt :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: VAT Audit :: articles on VAT and GST in India :: due date for vat payment
« News Headlines »
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016
 Announcement - Clarifications in Respect of MEF 2016-17

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 2016 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