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: articles on VAT and GST in India :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: TDS :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: VAT Audit :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4%
 
 
« News Headlines »
 Filing of online return for 4th quarter of 2016-17 — extension of period thereof
 CBDT simplifies ITR filing process from FY18
 Govt extends service tax return filing date to April 30
 No move to tax farm income, clarifies Arun Jaitley
 New board for indirect taxes to become operational from June 1
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned

'Impose cap gains tax to address rich-poor divide'
June, 30th 2007
Prime Minister Manmohan Singhs suggestion to cap corporate sector salaries to reduce inequalities may not be a good idea, according to public finance expert Amaresh Bagchi. Instead, the government could impose a tax on capital gains from shares sold after one year of purchase and also on dividends. This would help bridge the divide between haves and the have-nots, he says.

There can be no quarrelling with the objective the Prime Minister has set for the corporate sector developing social responsibility. Gross inequalities are a concern of the state and powerful instruments are available to the government for this purpose such as adequate taxation of capital gains, he said at the National Institute of Bank Management Convocation on Friday.

Currently investors do not have to pay any tax on long-term capital gains from sale of shares. Dividends are also not taxed in their hands. Left parties have been pitching for scrapping long-term capital gains tax exemption. But the government has not relented so far.

Mr Bagchi took a jab at the RBI report on currency and finance for being upbeat on the India growth story, but silent on the great divide that is taking place. It would be a mistake to think that efficiency in production alone would mitigate these consequences.

Attention has to be paid to the question of equity as well, he said. He was critical of reservations as a panacea to provide equal opportunities to all. The right course was to offer good quality education and primary health and this is where the state has failed, he said. Besides corporates chipping in, banks too have a social responsibility of bridging this divide.

More loans to the priority sector is not the right solution as it impedes efficiency. Banks could help the poor by innovative banking like micro credit. They could also help by ensuring that farmers and SMEs get adequate and timely credit.

Had banks been more vigilant in securing credit to farmers and cautioned them against the use of pesticides, suicides might not have taken place on such a scale, he said. Banks can, for instance, donate computers to village schools or help build tube wells, without hurting their efficiency.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software 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