Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: TDS :: ACCOUNTING STANDARD :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: due date for vat payment :: ACCOUNTING STANDARDS :: VAT Audit
 
 
News Headlines »
 How to save income tax? Here are 6 investments with tax free income
 10 Top salary deductions that can save tax for you
 What are the tax saving options beyond Section 80C?
 The penalties for not paying tax on time
 How to make your salary tax efficient
 I-T Department may go into overdrive this quarter
 Ways to reduce the TDS deduction from your salary
 4 Tips for choosing who prepares your 2017 Tax Returns
 Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-1 to 6 & applicability of section 143(1)(a)(vi)
 Price Waterhouse gets 2-year ban in Satyam case
 How to save income tax under section 80C

Salaried to shell out more in tax
July, 21st 2006

All income earners, including the salaried and the self-employed, will soon have to fork out more tax. The Centre has finally relented on the long-standing demand from states to enhance the ceiling for tax on professions from the current level of Rs 2,500 to Rs 7,500 per year.

The tax on professions, trades, callings and employments, is a tax that the Constitution assigns to state governments/local bodies. In eight states, the state government itself collects the tax while in several others with active panchayats, the local bodies levy and collect the tax. Article 276 puts the ceiling on the tax at Rs 2,500.

The Constitution has been amended in the past to raise the tax level to bring it to the present level. Many states have been demanding that the Article should be amended again to hike the tax level to Rs 7,500 a year.

Eight states, including Maharshtra, Tamil Nadu, Karnataka, Gujarat, Madhya Pradesh, Andhra Pradesh and West Bengal, levy this tax on an annual basis. An increase in the ceiling is expected to substantially help these states in overcoming their revenue constraints.

A proposal in this regard is likely to be taken up by the cabinet soon. The present level of Rs 2,500 was fixed in 1988 though the 60th amendment. This time, the Centre wants to carry out another amendment though which it wants to retain the executive power to enhance the ceiling as and when required without having to go to Parliament for the same.

The amount paid to a local body/state government as tax on professions, etc is eligible for deduction from income while computing income tax payable to the central government. Therefore, a hike in the tax level could adversely impact personal income tax collections. States collect close of about Rs 3,000 crore by way of professional tax.

But, States feel that since the economy is booming and income tax collections are also on rise, this move would not have much impact. Earlier, when the proposal was mooted, centre had showed willingness to raise it to Rs 5,000 only. States want the additional revenues for meeting expenditure for creation of social infrastructure, including primary schools and hospitals.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

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