To maintain the balance of savings and investment in an economy, it is vital for any state administrative machinery to have necessary incentives in place. Incentives work best when they are linked to payment of taxes. Indians unlike western counterparts by and large love to save and invest for the future and all the more [...]
Archive for the ‘Direct Tax Code’ Category
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New Tax Code: Baby steps in tax reform
Posted by admin on September 9th, 2010
The Bill on the direct taxes code (DTC) placed in Parliament is very much on expected lines. The wide-ranging proposals to broaden the base in the first discussion paper have been diluted in the revised paper which is broadly reflected in the Bill. The only major difference is in the treatment of capital gains. The [...]
New DTC to affect SEZ exports
Posted by admin on September 8th, 2010
The proposed Direct Taxed Code (DTC) is likely to adversely affect the exponential rise in exports from special economic zones (SEZs). Exports from SEZs rose 68 per cent during the April-June period to Rs 58,685.46 crore, compared to the corresponding period last financial year. Exports from the tax-free enclaves had risen 121.40 per cent to [...]
With DTC the House property tax regime is set to change
Posted by admin on September 7th, 2010
Indians typically consider house property as an important source of investment for long-term returns. However, with the Direct Taxes Code (DTC), 2010, proposing significant changes in the way house property income would be subject to tax, it becomes imperative for investors to take note of the changes and plan their investment decisions accordingly. Rental Income [...]
DTC a cause for worry for FIIs
Posted by admin on September 7th, 2010
The Direct Taxes Code, which was recently tabled in the Parliament has as one of its noble objectives, reducing the uncertainty and litigation for the foreign investors. However, the recent version of the Bill may have just done the opposite for the Foreign Institutional Investors (FIIs). One hopes that some of these proposals are unintended [...]
DTC to bring required clarity on tax treatment of financial lease
Posted by admin on September 7th, 2010
The Direct Taxes Code (DTC) proposes to do the necessary for bringing some certainty on tax treatment of a financial lease, but this is not sufficient to make it a preferred mode of finance, say industry and tax experts. The levy of multiple taxes on a financial lease continued to hamper their widespread usage, they [...]
