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: list of goods taxed at 4% :: cpt :: VAT RATES :: articles on VAT and GST in India :: VAT Audit :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: form 3cd :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
Direct Tax »
 Best 5 Income Tax-Saving SIP plans in India: How To save taxes by Investing in SIPs under 80C
 Tax refund checks are finally in the mail
 Income Tax dues in advance can be paid at RBI or at authorised bank branches by March 2017
 Why you must be looking beyond tax planning
 I-T dept. to lauch app for paying tax
 CBDT to taxman: Step up TDS survey operations to boost collections
 Tax Officers Asked To File Self-Appraisal Report On E-Assessment
 CBDT to taxman: Step up TDS survey ops to boost collections
 Govt to issue exemption list on new tax for unlisted firms
 CBDT issues third round of certificates to tax payers
 Central Board of Direct Taxes (CBDT) signs four more unilateral Advance Pricing Agreements (APAs)

It makes sense to not hasten with a patchwork Direct Taxes Code
August, 30th 2012

Finance minister P Chidambaram says the government will take a fresh look at the Direct Taxes Code (DTC), meant to replace the cumbersome incometax law. This is welcome. The Bill tabled in Parliament deviated from the principles embodied in the original draft, of keeping tax rates low and removing exemptions that distort the tax structure.

The government should adhere to these principles to build a new clean law that would lower the burden on taxpayers, even as it raises more resources to meet spending needs. A reversion to principle will increase the tax base to a comprehensive level, making it possible for the government to lower the corporate tax rate 25% proposed in the original code, 14% in Singapore and also increase the threshold levels in personal income for progressive rates of tax to kick in.

Sensible suggestions such as the exempt-exempt-tax ( EET) method for savings that were abandoned in the Bill should be restored. This means contributions and accumulations to savings schemes would be tax-free, but withdrawals would be charged to tax.

Here again, the principle that no savings asset would be taxed, but only income from the asset would be charged, would do away with arbitrary distinctions between long-term and short-term savings. Discretion arising from such arbitrariness will introduce artificial distortions and is avoidable. However, some proposals such as tax on assets should not be revived as it could have unsettling implications for companies, and revive incentives for opaque holdings.

Tax policy reform should be comprehensive and, therefore, the government need not rush through the DTC Bill. The point is that the DTC is not just about writing the income-tax law in simple English. It should embody sound principles. That said, proposals such as the general antiavoidance rules (Gaar), meant to curb sharp tax practices, need not wait till the passage of the DTC Bill.

Gaar must be supported with comprehensive guidelines that take away scope for arbitrary application. An unbiased tax administration, clear tax laws and a stable tax regime will improve compliance and offer comfort to investors. Thorough is more important than fast, in this case.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Outsourcing Test Solutions Software Testing Software Bug Testing Software Issues Tracking Software Issue Fix Software Code Optimization Database Design Optimization

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