Government considering increase in the income-tax exemption limit for individuals in next budget
Jan 21, 2010 Income Tax
The government is exploring an increase in the income-tax exemption limit for individuals to compensate for the high recent inflation, but revenue considerations and the fact that the limit was hiked sharply in 2008-09 could force it to maintain status quo or give just a token hike. The proposal has figured in the preliminary discussions , as the policymakers debate ways to give some relief to households from high inflation.
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Tags: consumer price index, direct taxes, economic relief, Excise Duty, exemption limit, fiscal consolidation, global practices, government official, households, Income Tax Exemption, Inflation, joshi, KPMG, principal economist, progressive alliance, significant impact, slab, slabs, tax rate, tax rates
Short term capital losses subject to STT can be set off against Short term capital gains not subject to STT
Dec 18, 2009 Income Tax Case Laws
Background:-The Finance Act, 2004 introduced section 111A in the Income-tax Act, 1961 (the Act) prescribing a tax rate of 10 percent on Short Term Capital Gains (STCG) arising from sale of shares on or after 1 October 2004 on a stock exchange which are subject to Securities Transaction Tax (STT).
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Tags: appellate tribunal, computations, finance act, first state asia, first state investment, first state investments, hongkong, income tax act, income tax act 1961, institutional investor, itat, non residents, SEBI, short term capital gains, stcl, stock exchange, STT, tax rate, technology fund, transaction tax
MAT, Clarification regarding add back of ‘Provision for diminution in the value of asset’ while computing book profit
Dec 13, 2009 Income Tax
1. MAT Provisions: (Clauses 43, 44 & 45)
1.1 Present Provision: 115JA, 115JAA and 115JB
It was zero-tax companies, which were profitable and paid dividends to shareholders but owing to various deductions/sops available under the tax laws did not have a taxable income and thus did not pay tax, that caught the attention of the legislators and led to the introduction of MAT.
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Tags: Book Profit, diminution, dividends, net profit, shareholders, tax credit, tax liability, tax rate, taxable income
Tax profit on sell of license by new mobile operators at high rate
Nov 23, 2009 Income Tax
The Member of Parliament and former owner of BPL Mobile, Mr Rajeev Chandrasekhar, has written to the Prime Minister suggesting the Government should impose a windfall (Extra) tax on new mobile players if they sold their licences.
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Tags: acquisition policy, bpl mobile, business line, chandrasekhar, consumer interest, infrastructure, member of parliament, merger, mobile operators, parliament, substantial business, tax profit, tax rate, windfall
State should be compensated for loss of revenue on implementation of GST
Nov 18, 2009 Goods and service Tax
States that have huge mineral and petroleum reserves, but are economically backward may face significant loss of tax revenues on implementation of goods and services tax (GST), according to economists and experts in public finance. Introduction of GST would lead to the abolition of central sales tax (CST), which is collected by state governments on inter-state sales of goods. The CST rate was reduced from 4% to 2% at the time of introducing value added tax (VAT) in 2005.
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Tags: abolition, finance ministers, financial assistance, financial crisis, goods and services tax, inter state, mineral reserves, petroleum reserves, public finance, rate structure, revenue shortfall, state finance, state governments, tax rate, tax rates, tax revenues, time consumption
New Tax Code – Favouring the Millionaires and Bullying the Others
Oct 16, 2009 direct tax code
DIRECT TAX CODE BILL, 2009 was unveiled by our Hon. Finance Minister on 12th August 2009 and has been placed in the public domain for an analytical study and critical review of all its clauses. It seeks to consolidate and amend all the Laws relating to the Direct Taxes. It seeks to bring all Direct Taxes under one code for providing a single tax reporting system. It has been stated that the new code is drafted by taking into account the internationally accepted principles and their best practices to make it at par with world practises and not merely to replace the existing Income Tax Act of 1961.
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Tags: direct taxes, finance minister, income tax act, Income Tax Rates, point of interest, public domain, reporting system, senior citizen, senior citizens, single tax, slabs, tax payers, tax rate
Set-off of short-term capital losses, subject to STT, allowable against short-term capital gains not subject to STT
Sep 4, 2009 Income Tax, Income Tax Case Laws
The Income-tax Appellate Tribunal (“the Tribunal”) , in the case of First State Investments (Hongkong) Ltd. A/c First State Asia Innovation and Technology Fund1 (“the assessee”), examined the manner of set-off of short- term capital loss suffered from sale transactions subject to Securities Transaction Tax (”STT”) against short- term capital gains arising prior to introduction of STT, during the financial year.
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Tags: appellate tribunal, capital losses, exchange board, first state asia, first state investments, hongkong, income tax act, income tax act 1961, innovation and technology, securities and exchange, securities and exchange board of india, short term capital gains, stock exchange, stock exchanges in india, STT, tax authorities, tax rate, technology fund, transaction tax
Implications of the draft code
Aug 29, 2009 Income Tax, direct tax code
The long awaited Direct Tax Code Bill 2009 (‘Code’) was finally unveiled by the Finance Minister on August 12, 2009. The Code seeks to bring all direct taxes under one code and pave way for a single unified tax reporting system. The Finance Minister has indicated that the Code has been drafted on a clean slate after studying and adopting internationally accepted principles and best practices in the world and is not an attempt to ‘amend’ or ‘improve’ upon the present Income-tax Act, 1961 (‘Act’).
Tags: book profits, clean slate, direct taxes, dividend distribution, exemption limit, finance minister, gross assets, income tax act, income tax act 1961, profits tax, reporting system, senior citizens, slab, tax rate, tax rates, tax threshold, unincorporated body, Wealth Tax