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 INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: empanelment :: Central Excise rule to resale the machines to a new company :: VAT RATES :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: VAT Audit :: cpt :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: TDS :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4%
 
 
General »
 Simplified one page Income Tax Return Form: Changes to keep in mind before filing tax return for AY2017-18
  No proposal to replace Income Tax with Banking Cash Transaction Tax
 GST coming July 1 despite calls for delay: Revenue Secretary Hasmukh Adhia
 Centre introduces provision of taxation on NPS in Income Tax Act
 Income Tax Department Clarifies On Cash Withdrawal From Banks, Post Offices
 The Goods And Services Tax (Compensation To States) Bill, 2017
  Goods and Service Tax (GST) and Real Estate Sector
 New Income Tax Rules On Home Loan Come Into Effect
 Here's how late filers can save on stress and taxes
 Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib ?Kalyan Yojana, 2016
 Companies should invest in upgradation of tax technology

Tax reforms in India lag behind growth
June, 20th 2011

Taxation reforms in India have not kept pace with economic growth, leading to the problems of tax evasion and money laundering and resulting in an estimated $1.4 trillion of black money, an expert said.

"In India, tax reforms have lagged behind growth. It is a big challenge for politicians and policymakers to keep the pace of reforms with growth," Jeffrey Owens , director of the OECD (Organisation for Economic Cooperation and Development) Centre for Tax Policy and Administration , told IANS during a visit to New Delhi.

He said high tax rates and loopholes in policies led to huge black money in India, which is mostly stashed abroad.

According to unofficial estimates, the quantum of Indian black money ranges from $450 billion to $1.4 trillion.

"Indian economy has transformed in the last two decades. Along with high growth, it has increasingly become importer and exporter of capital. But tax regulations have largely remained the same. You have to change with the changing environment," the OECD official said.

Owens said the proposed tax reforms would help plug loopholes in the system and boost growth.

India plans comprehensive reforms in both direct and indirect tax regulations. The government aims to replace the archaic Income Tax Act, 1961, with a simplified norm called Direct Tax Code (DTC) from the beginning of the next financial year.

The DTC Bill, that aims at reducing tax rates but expanding the tax base by minimising exemptions, was introduced in parliament in August last year. However, the bill has not been passed yet.

Under the new tax regime, the government proposes to introduce measures that would help curb tax evasion and black money. It proposes to bring into the tax net all passive income earned by residents from substantial shareholding in companies situated in the low tax jurisdictions, often referred to as tax havens.

Assessees are also required to furnish details of their investment and interest in any entity outside India.

Finance secretary Sunil Mitra said recently that the reformed tax regime would help bring back the ill-gotten money stashed abroad.

To reform the indirect tax regime, the government proposes to introduce a unified Goods and Services Tax (GST). It seeks to bring uniformity in indirect tax structure across the country by replacing the excise duties, services tax, value-added-tax, state surcharges and local levies with a unified tax rate.

Originally, the GST was planned to be introduced from April 1, 2010, but it has been delayed because of stiff opposition from the Bharatiya Janata Party ( BJP ))-ruled states.

The new tax regime is unlikely to be implemented soon, given the rift between the federal government and opposition-ruled states.

Owens said the proposed reforms would boost the government's revenues and economic growth.

According to him, the focus of the reforms should be on broadening the tax base and reducing dependence on direct taxes. "The focus should be on consumption tax and property tax. Corporate taxes need to be reduced and the tax base broadened," he said.

Owens said that to attract more foreign investment, India needs to bring stability and predictability in its tax regime.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

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