Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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
 
 
 
 
Popular Search: due date for vat payment :: ACCOUNTING STANDARDS :: VAT Audit :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: Central Excise rule to resale the machines to a new company :: VAT RATES
 
 
Direct Tax »
 Businesses need not deduct GST on advances received for goods supply: CBEC
 Redress taxpayers' grievances on priority: CBDT to I-T department
 No tax relief on EPF interest if not employed: ITAT
  CBDT signs 7 more unilateral APAs with taxpayers
 Income tax returns (ITR) filing: Get capital gains tax exemption on new property; here is how
 Reach out to non-filers of GST returns: CBEC to fields offices
 CBDT may shelve plan to seek corporate tax estimates in advance
 IT expertise at banks' board level a must, says RBI ED
 Clarification on Indirect Transfer provisions in case of redemption of share or interest outside India under the Income-tax Act, 1961
 To avoid double-taxation CBDT says no tax at upstream foreign fund if local fund paid already
 CBDT extends due date for filing Income Tax Returns and Tax Audit Reports

DTC 3.0: Seven personal taxation areas that need a change
September, 03rd 2012

The original bill was a path breaking reform, but was watered down in 2010. Here are some ways it can be improved now.

Any taxpayer who has just filed his return will tell you how easy the process has become. While filing the return has been simplified, computing the taxable income, calculating the tax and preparing the return are still mired in difficulties.

The average taxpayer easily loses his way in the maze of deductions of the Income Tax Act, 1961. Three years ago, the government raised hopes of sweeping changes with the Direct Taxes Code, but Pranab Mukherjee watered it down. Now Finance Minister P Chidambaram has promised to review the DTC once again. ET Wealth identifies seven areas in personal taxation that need to be changed.

Exemptions and deductions
Original proposal: Did away with most exemptions and deductions.

Revised DTC: Reinstated all the sections of the Income Tax Act.

What needs to be changed: Every month, millions of Indians fill out fictitious bills to claim tax-free reimbursements and allowances. The average private-sector employee gets 20-30% of his net take-home salary as tax-free reimbursement. Doing away with these exemptions and deductions will simplify the tax structure and plug tax leakages.

Tax slabs

Original proposal: No tax on income up to Rs 2 lakh; up to Rs 10 lakh taxed at 10%; up to Rs 25 lakh at 20%; and 30% tax on income beyond Rs 25 lakh.

Revised DTC: Brought down tax slabs. Basic exemption of Rs 2 lakh; up to Rs 5 lakh at 10%; up to Rs 10 lakh at 20%; and over Rs 10 lakh at 30%.

What needs to be changed: If exemptions and deductions are removed, the tax slabs must also be raised to cushion the taxpayers from the impact. The change will not hit the income tax collections because of the higher income in the tax net.

Tax-saving limits

Original proposal: Higher annual tax-saving limit of Rs 3 lakh for an individual.

Revised DTC: Retained the limit, but included in it the home loan benefit of Rs 1.5 lakh. It also set a sub-limit of Rs 50,000 for life and medical insurance.

What needs to be changed: It's a throwback to the Section 88 era, when the government decided how one should split tax-saving investments. The sub-limits should be removed and the allocation of Rs 3 lakh should be left to the taxpayer.

Real estate

Original proposal: Removed the tax benefits on home loans. Rent presumed at 6% of value. Standard deduction reduced to 20% of rental income.

Revised DTC: Reinstated home loan benefits and did away with 6% presumptive rent. No change in reduction of standard deduction.

What needs to be changed: Any change in tax benefits should be from prospective effect. It would be unfair for existing borrowers if the rules are changed midway. The presumptive 6% rent checks tax leakage and should be reinstated.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

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