Income Tax : As per news report, out of 190 recommendations made by Committee, the Finance Minister accepted 153 either wholly or with partial ...
Income Tax : Tax Audit under the Income Tax Act is currently allowed to be conducted only by the Chartered Accountant but Proposed Direct Tax C...
Income Tax : The initiation of enactment of the DTC Bill was, if one remembers right,lately announced to be slated to be made on 22nd August (?...
Income Tax : 10. Threshold limit for TDS: The present section 194J provides an exemption limit or threshold limit for TDS for professional fees...
Income Tax : As we are expecting the DTC be implemented from 1st April 2012, we have to be familiar with the DTC provisions. In general the DTC...
Income Tax : Direct Taxes Code, 2013 has proposed to widen the scope of the definition Accountant” to include other professionals as well. It...
Income Tax : The Finance Minister Shri P.Chidambaram has said that the work on Direct Taxes Code (DTC) is in progress. Presenting the Union Bud...
Income Tax : On the changes suggested by the panel in the DTC, Mukherjee said two recommendations, General Anti Avoidance Rule (GAAR) and Advan...
Income Tax : The Union Finance Minister ShriPranab Mukherjee today expressed firm commitment to enact the Direct Taxes Code (DTC) Bill at the e...
Income Tax : The committee, according to sources, wants the government to raise the income tax exemption limit to Rs 3 lakh in view of the near...
The Supreme Court will hear on September 10 the impleadment petition filed by the Forex Derivatives Consumers Forum along with the Special Leave Petition filed by Fixed Income Money Market and Derivatives Association of India (FIMMDA). Forex Derivatives Consumers Forum is a registered association of exporters from across the country, a majority of them from Tamil Nadu’s Tirpur district.
Once the Direct Taxes Code (DTC) 2010 get approved by both houses of the Indian parliament, and receives the President’s assent, it would be enacted as law. Significantly, while it was earlier envisaged that as per the original proposal the DTC would be effective from 1 April 2011, the start date of DTC 2010 has now been deferred by a year to 1 April 2012.
DTC Billproposes to tax short-term capital gains arising from stocks and mutual funds at half the marginal rate.So, if your marginal tax rate is 30 per cent, you will pay a short-term capital gains tax at 15 per cent. As far as long-term capital gains tax goes, it has been kept out of the tax net, subject to the payment of securities transaction tax (STT).
The government has proposed to exempt income of charitable and not-for-profit organisations up to R1 lakh from tax and levy a tax of 15 per cent on all income above that ceiling. The Direct Taxes Code (DTC) Bill introduced in Parliament on Monday said the provisions would not apply to specified organisations. Charitable activity does not include the carrying on of any activity in the nature of trade, commerce or business or any activity of rendering any service for a fee except where the gross receipts during the financial year from such activity exceed Rs. 10 lakhs.
“The mutual fund or the life insurer or the person responsible for making payment of the distributed income on its behalf, shall be liable to pay tax to the credit of the government within a period of fourteen days from the date of distribution or payment of such income, whichever is earlier,” said the DTC Bill.
Provisions of the proposed direct taxes code will strengthen India’s tax demands on cross-border acquisitions involving Indian companies. Section (5) of the code stipulates that tax is payable in India whenever a foreign company’s shares are transferred, if at least 50% of its assets are situated in India.
The government today proposed to retain corporate tax at 30 per cent, but without the surcharge and cess that increase the current levy to over 33 per cent. The current tax rate for domestic companies, including surcharge and cesses, comes to about 33.22 per cent, while foreign companies pay over 40 per cent.
Under the DTC Bill, the annual deduction has been raised to Rs. 1.5 lakh. From the bill It appears that investments in PPF, PF, NPS, pure life insurance policies, savings schemes as notified by the government are eligible for this deduction under EEE category.
While senior citizens will continue to enjoy greater tax exemption, women tax payers will lose their special status under the proposed Direct Taxes Code. The Bill proposes to raise the tax exemption limit for senior citizens above 65 years to Rs 2.5 lakh per annum from Rs 2.4 lakh at present.
The proposed Direct Taxes Code (DTC), which will replace the archaic Income Tax Act, is bulkier than the existing law, as the new legislation also seeks to substitute the current Wealth Tax Act. While the proposed DTC has 319 sections and 22 schedules, there are 298 sections and 14 schedules in the existing act.
