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: ACCOUNTING STANDARDS :: VAT Audit :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: due date for vat payment :: list of goods taxed at 4% :: form 3cd :: empanelment :: cpt :: VAT RATES
 
 
ę News Headlines »
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?

Dont lose sleep over taxes
August, 11th 2010

If it goes through, it will be a change that will affect all tax payers in the country. The Direct Tax Code (DTC) is being proposed as a replacement for the Income Tax Act, 1961, and is likely to come into effect from April 2011. The draft DTC, say finance experts, is a bitter pill. If it is not sweetened, it could prove debilitating. A talk on the issue was organised in the city by the Federation of Indian Chambers of Commerce and Industry on Tuesday. Nihar Jambusaria, national head of Tax Advisory Services, Mumbai, said that although the language of the DTC is harsh, the law will be milder once it came into effect. He was in conversation with Media.

What benefits will DTC offer the ordinary tax payer?

Ordinary tax payers with a fixed income worry that the tax benefits they enjoy will be withdrawn. Beyond that, all else is secondary.

Do you think the changes proposed might give ordinary tax payers real cause for worry?

The tone and tenor of the new rules are not friendly. There are indications that very many benefits a tax payer today enjoys might be taken away. The DTC, if implemented as it is, would take away many benefits like IT exemption on housing loans, leave travel allowance, long term capital gains, and tax holidays for special economic zones.

So what good news can the ordinary tax payer expect? Surely, there must be some.

Indeed, there is. I could see some positive aspects raising the slab for income tax, for instance. Tax rates will be 10% for income from Rs1.6 lakh to Rs10 lakh; 20% for income up to Rs25 lakh and 30% for earnings above Rs25 lakh per annum. This is good, provided the Union finance minister does not take away with the right hand what he gives with his left. I strongly believe that the finance minister will bow to popular pressure and keep most of the benefits enjoyed by common tax payers intact. But that is only conjecture for now.

So prepare us then, for the bad news.

Currently, a maximum deduction of Rs1.5 lakh per year is allowed for interest paid on a home loan. Under the DTC, self-occupied property will get no deduction. This could be quite a blow to millions who have taken housing loans. Also, many financial institutions have a great stake in the housing sector. But there are indications that Pranab Mukherjee has realised the enormity of the problem. He may be inclined to drop this move.

Capital gains on sale of shares, which is now 15%, could go up. But there are many things the corporate sector should worry about. They should study the DTC and start countering them logically with the government. I believe that in the end, the final DTC will be a milder version that will go down well with a majority of tax payers.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Bath SEO Company Birmingham SEO Company Bradford SEO Company Brighton and Hove SEO Company Bristol SEO Company Cambridge SEO Company Canterbury SEO Company Carlisle SEO Company Chester SEO Company Chichester SEO Company Coventry SEO Compan

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