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: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: VAT RATES :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ACCOUNTING STANDARD :: form 3cd :: articles on VAT and GST in India :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: empanelment :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4%
 
 
News Headlines »
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya
 No decision yet on imposing tax on cash transactions

Govt to trim tax rates, phase out exemptions
August, 13th 2009

The government proposes to reform its archaic tax laws, cut corporate tax rates to 25 percent, phase out exemptions, and simplify rules on corporate mergers.
Here are some of the key proposals of the draft Direct Tax Code announced late on Wednesday, which is likely to be implemented from the year 2011 and would replace the Income Tax Act of 1961.

CORPORATES

* The draft code proposes to cut the corporate tax rate to 25 percent from the present 30 percent.

* The tax rate would be 15 percent for non-profit making organisations, and 30 percent for local authorities and unincorporated bodies.

* All profit-linked incentives for businesses to be phased out and substituted by investment-linked incentives.

* Business losses can be carried forward indefinitely.

* Laws on mergers and acquisitions are to be rationalised to allow "tax-neutral" business reorganisation.

* Minimum Alternate Tax would be levied at 0.25 percent for banks and 2 percent for firms on their gross assets, instead of the present levy on book profits of companies making net loss.

MARKETS

* Securities transaction tax to be abolished.

* The draft proposes to retain a 15 percent tax on dividends.

* Taxation of capital gains to be rationalised.

* Distinction between long-term and short-term capital gains to be eliminated.

* The draft proposes 10 percent tax on income between 160,000 rupees ($3,325) and 1 million rupees for an individual, from the present range of 160,000-300,000 rupees.

* A 20 percent tax is proposed for income between 1 and 2.5 million rupees from the present limit of 300,000-500,000.

* The tax rate would be 30 percent for income above 2.5 million rupees, compared with the present upper threshhold of 500,000 rupees.

* All perquisites to be included in salary income.

* Income from lotteries, gambling and racing would attract 30 percent tax.

* Wealth tax rate would be 0.25 percent of the amount by which the net wealth exceeds 500 million rupees.

* All savings would be taxed at the time of withdrawal.

* Retirement benefits to be taxed at the time of withdrawal.

* The draft also proposes to raise the deduction limit for savings to 300,000 from the present 100,000.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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