Section 80C replaced the existing Section 88 with more or less the same investment mix available in Section 88. The new section 80C has become effective w.e.f. 1st April, 2006. Even the section 80CCC on pension scheme contributions was merged with the above 80C. However, this new section has allowed a major change in the method of providing the tax benefit. Section 80C of the Income Tax Act allows certain investments and expenditure to be tax-exempt.

A recent report by Finance Commission taskforce has clarified many issues related to implementation of GST in India. Though there are many new matters which were considered in this report, but there some variations were observed as of the matters which were recommended in first discussion paper on implementation of GST in India, issued by 13th Empowered Committee of Finance Ministers on 11th November 2009.

Finance Minister Pranab Mukherjee on Friday indicated the government could rewrite the new direct tax code to make it acceptable to all stakeholders. On the tax code, he said, the government would attempt to build consensus on the proposals. “I have laid a certain proposal in the form of a direct tax code. But it is not the Bhagwad Gita and it cannot be said that it cannot be changed,” he added.

Himachal Pradesh and Uttarakhand, the two Himalayan states which have drawn thousands of crores of investments due to the tax benefits they offer, stare at the possibility of losing the status as Finance Minister Pranab Mukherjee looks to plug loopholes and boost revenues for a government that’s on a spending spree.

The government may retain profit as the key condition for levying minimum alternate tax (MAT) in the final draft of the direct taxes code after its asset-based approach proposed earlier ran into a storm of protests from industry. Other options being considered by the government include tax exemptions for asset-heavy infrastructure companies and start-ups, and a lower rate for MAT, a senior government official told.

The Central Board of Direct Taxes (CBDT), the government’s apex tax policy and collection body, has suggested that the new direct taxes code abolish Minimum Alternate Tax (MAT) and continue to offer individuals tax exemptions on savings under the existing EEE (exempt-exempt- exempt) method.

Factories, Business Processing Units and software development firms inside Special Economic Zones (SEZ) will lose all income tax benefits—the most crucial incentive for the tax free industrial enclaves— if the direct taxes code replaces the Income Tax Act of 1961 without any change. The proposed norms also talk of tightening tax incentives to developers of [...]

Former Infosys chairman Narayan Murthy gives his views on a wide range of topics and opines that the IT industry should not be given any tax exemptions. Excerpts from the interview: Q: How do you see this government coming back with such a clear majority? Murthy: Indian voter has voted for stability and has recognised [...]

Local city development agencies, such as Delhi Development Authority and Noida Development Authority, which have been raking in the moolah for some time from their housing projects, have drawn the attention of taxmen. The Central Board of Direct Taxes has sounded an alert to its field forces asking them to keep a tab on tax payments by [...]

Mr Rajinder Hinduja, Executive Director (Finance), Gokaldas Exporters, expressed concern over the delay in the refund of taxes linked to levies like service tax and others. Mr Hinduja also pleaded for a clear stand on the 100 per cent export oriented units, which enjoyed tax exemptions. However, with the concession expected to expire in 2009, the exporters would be pushed to dire straits, he said. Mr Ravi Vshwanath, CFO of Sun Microsystems said though the bigger software companies had, to an extent managed the impact of the stronger rupee through costreduction, but smaller units that were reeling under the problem.