Income Tax Archives - indiabusinessview

Corporate Income Tax: small benefits, but SEZs dealt a MAT blow

March 1, 2011August 20, 2014Editor

The Special Economic Zone tax bonanza will end, if the Budget proposals pass in their current form. Barring this, the Budget does not have any nasty surprises for companies.

Highlights:
The corporate surcharge has been lowered from 7.5% to 5%. That reduces the effective corporate tax rate from 33.2% to 32.4%, which is a nice, even if small, relief for Indian companies. The new rate will be 30% plus a 5% surcharge, which works out to 31.5%, and after adding the education cess of 3%, it works out to 32.4%.

Individual Income Tax: loose change for the salaried, hurrah for the elders

February 28, 2011August 20, 2014Editor

The government did not disappoint on expectations that it would increase the tax exemption limit for individuals. But it did nothing very dramatic on this front.

New Income Tax Code: lower rates, fewer exemptions

August 13, 2009August 20, 2014Editor

Finance Minister Pranab Mukherjee stuck to his promise made in his Budget speech and has put the draft Direct Tax Code in the public domain. The government is asking for comments, before it is introduced in parliament. Over the years, the Income Tax Act, 1961, has been supplemented by several amendments, interpretations and rules.

KPMG India’s Budget highlights

July 12, 2009August 20, 2014Editor

KPMG India has analysed the implications of the budget in two parts. The report that talks about the Budget Highlights says in a foreword it is reassured by the government’s stand reiterating a commitment to bring in GST by April 2010. It also talks about issues like the new direct tax code, setting up of an alternative dispute resolution mechanism and empowering the Central Board of Direct Taxes to formulate safe harbour rules for transfer pricing in international transactions.

Budget 2009-10: Impact on Industry

July 8, 2009August 20, 2014Editor

Income Tax
This was a big disappointment to those expecting a bagful of goodies from the Indian government, that the Union Budget 2009-10 would cut dividend distribution tax, corporate tax rates will be cut and so on. There was no change in the corporate tax rate.

Individuals and the Budget: No major tax reliefs, no major pain

July 7, 2009August 20, 2014Editor

There was little to cheer for the individual tax payer in the 2009-10 Union Budget. The view perhaps is that the burden on him has been lowered substantially in the past few years. Hence, there is no reason to do a lot this year.