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 :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: TDS :: form 3cd :: cpt :: VAT RATES :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS
News Headlines »
 CBDT releases Income Tax Return statistics for last two fiscals
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 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

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 2016 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