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: list of goods taxed at 4% :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: cpt :: due date for vat payment :: form 3cd :: VAT RATES :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD
 
 
Direct Tax »
 Hopeful of meeting direct tax collection target for this financial year: CBDT
 Bengaluru tops in income tax probes after demonetisation
 Income Tax department rejects black money disclosures of over Rs 2 lakh crore
 CBDT urges people to protect bank accounts from 'unscrupulous elements'
 No change in gold seizure norms in proposed I-T Law amendments
 Direct tax collection will get a long-term boost, Franklin Templeton says
 I-T Act amendments upset calculations of cash hoarders
 Claim tax benefit on costs incurred to evict tenants
 The Integrated Goods And Services Tax Act, 2016
 Here’s what Income Tax Department did leading up to demonetisation
 I-T department asks IDS declarants to pay tax by November 30

Direct tax revenue to exceed indirect tax this year
June, 02nd 2008

A surge in honesty explains tax buoyancy, says the Finance Minister's adviser on tax policy. Direct tax collections are poised to exceed indirect tax revenue for the first time. But a rate cut might have to reckon with opposition from the Left parties, reports CNBC-TV18.

 When Finance Minister P Chidambaram projected a 16% rise in direct tax collections for this year, he had admitted it was a stretch target, because they were on top of a 39% rise in collections last year. But income taxes, both on companies and individuals, have grown by 43% so far, making it a record year for direct tax collections.

 According to Parthasarathi Shome, Adviser to Finance Minister, Historically, we are experiencing the highest rate of growth in income tax revenue in India and the highest that I have seen across the globe on a sustained basis.

 Direct tax collections have growth by over 40% for the second year in a row, much higher than the 26% average growth seen in the previous three years. Economic growth and higher corporate profitability have helped. And with the tax department equipping itself with the capability to ferret out income data from spending patterns, earners seem to have become more honest as well. This is because, revenue is growing at more than the conventional compliance measure of two times nominal GDP growth.

 Economy is growing at 13%, but revenue is growing at 43%. The gap is between 3 and 1. We are getting voluntary compliance. We should do some structural changes, added Shome.

 And for the first time, the tax department expects direct tax collections to exceed revenue from indirect taxes by the middle of December, if they have not already done so. This was one of the aims of tax reform, to decrease the share of indirect taxes. There is a case for a rate cut but exemptions will have to go. Because of these exemptions, large companies effectively pay a rate of 18%, while the smaller ones pays around 26%.

 We have to be competitive. We are constantly on the vigil, Shome said.

  The Adviser to the Finance Minster says that ideally, the income tax rate for both companies and individuals could be 27.5%. That surcharge must go and the exemption limit for salaried earners should be Rs 3 lakh. But his private opinion may not become public policy because of opposition from the Left parties that believe in taxing and spending.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

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