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
Latest Expert Exchange
« General »
 Interim budget may include income tax announcements, says report
 All you need to know about tax benefits for senior, super senior citizens
 Where to invest money for the short term
 Statistics ministry seeks GST data to improve national accounts
 Country of residence may tax you on global income
 Country of residence may tax you on global income
 SC denies income tax exemption to local authority
 Composition Dealers need not furnish data in serial number 4A of Table 4 of FORM GSTR-4
 I-T Dept may probe tax evasion through F&O trades
 IL&FS crisis: ICAI seeks explanation from audit firms
 Arun Jaitley pushes for more tax filing in FY19

Tax sop withdrawal to earn govt Rs 55,000 crore
September, 27th 2010

The government is going to bring Rs 55,000 crore worth revenue within the tax net through the withdrawal of profit-linked tax exemptions, while it will lose Rs 53, 172 crore worth of taxes for moderating rates after the Direct Taxes Code (DTC) is introduced next year, said revenue secretary Sunil Mitra on Saturday.

The government loses Rs 80,000 crore per year on account of investment-linked and profit-linked tax exemptions, Mitra said on the sidelines of a seminar on DTC organised by CII. In DTC we will withdraw all profit-linked tax exemptions but we will continue with investment-linked tax exemptions, Mitra said.

Withdrawing profit-linked tax exemption will help the government mop up Rs 55,000 crore additional revenue in 2012-2013 but the government will still continue to lose Rs 25,000 crore on account of investment-linked tax exemption, Mitra said.

He said for moderation of corporate taxes, which would be brought down from present 33.2% to 30% in DTC, the government will loose Rs 38, 829 crore.

For moderation of income taxes the government would lose Rs 14, 343 crore. However, the loss of Rs 53,172 crore worth of revenue would be inclusive of the impact of withdrawing all cess and surcharges.

So the government in first year of DTC would collect additional revenue of Rs 1,823 crore from both direct and indirect taxes. The government has estimated an earning of Rs 25,000 crore from cess and surcharges in 2010-2011, which is likely to increase next fiscal. But in DTC the government would do away with all cess and surcharges, Mitra said.

He said the governments indirect tax collection in the first five months of the current fiscal has gone up 45% and the direct tax collection has gone up by 20%. Part withdrawal of stimulus has given a boost to indirect tax collection, Mitra said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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