Tally for Practicing CAs Gold Edition (Multi User) Tally for CAs in Industry Silver Edition (Single User) Tally Renewal (Auditor Edition) Need Tally for Clients? (Tie-up with us!!!)
News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
« General »
 Doing Business In India 2020_A Tax & Regulatory Guide
 Adjust capital gains against basic exemption limit to reduce income tax
 TDS on e-Commerce is a very bad idea
 Want to claim tax benefits on medical expenditures? Know the provisions Income Tax Return
 States object to plan to create defence fund out of divisible central taxes
 5% tax on foreign fund transfers that may go up to 10% for some
 After hike, tax collection of Delhi government falls in August
 I-T Deptt launches functionality for banks to check ITR filing status of entities
 How nudges can improve tax compliance
 What does entertainment tax mean?
 Catching elusive taxpayers still a work in progress

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 | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting