New Delhi: The government is considering a proposal to extend further incentives to salaried taxpayers in the upcoming budget. The Finance Ministry may allow individual taxpayers to pay a lower flat rate of tax if they forego all exemptions. The new structure would be similar to tax rates proposed by Finance Minister Nirmala Sitharaman late last year where the base corporate tax rate was reduced to 22 per cent from 30 per cent for companies that agreed to forgo all exemptions and incentives. The tax was kept at even lower rate of 15 per cent for new manufacturing companies. "After tax sops for corporates last year, the government is looking at ways to incentivise the individual taxpayers that form a major source of revenue for the Centre. While major changes in tax slabs could wait for some time, a scheme similar to the one implemented for the corporate sector is being examined for individuals too," said a source privy to discussions on the issue in the government. At present while … [Read more...] about Budget 2020: Government May Offer Flat Tax Rate Sans Exemptions To Individuals Also
Nj corporation tax
As the Budget is around the corner, reports suggest that the dividend distribution tax could be abolished. The task force on the direct tax code has also recommended scrapping dividend distribution tax (DDT) in order to boost investments. What is DDT?A dividend is a sum of money given by a company to its shareholders out of the profits earned. Dividend distribution tax is the tax levied on the dividend paid by a company to its shareholders. The provisions of DDT were introduced by the Finance Act 1997. Only a domestic company is liable and has to pay the tax even if it is not liable to pay any tax on its income. How does its abolition help the economy?After the government announced a cut in corporate tax rate, there were many who called for removal of Dividend Distribution Tax (DDT). If the government abolishes the DDT, it will boost market sentiment and allow companies to invest more in the economy. The move will make the Indian equities more attractive for foreign investors and … [Read more...] about What is Dividend Distribution Tax & how will its abolition impact the economy?
We are in the last quarter of the current financial year and this is when most taxpayers start focusing on their tax-saving investments, as they are required to submit the proof of such investments to their employers to avoid excess withholding of taxes from their pay. While tax saving is not the only consideration for investments, it is an important consideration nonetheless. Timely investments are also necessary for the improvement of the returns on the investments made. It is also important to select the appropriate mode of investment so that one’s own financial goals are met, and any future monetary requirements are covered. The Income-tax Act, 1961, contains provisions for several tax exemptions and deductions. This article highlights some important exemptions/deductions and how one can make use of them. … [Read more...] about Know your tax exemptions to invest wisely
Sources emphasised that the permissible ITC limits have been further reduced to 110 per cent of the declaration made by the suppliers from January 1, 2020 and the taxpayers filing their return for the month of December 2019 should take this into consideration while filing their FORM GSTR-3B, to avoid any punitive action by the authorities. … [Read more...] about Tax Dept Raises GST Revenue Target to Rs 1.15 Lakh Crore for January and February
Live reaction to Budget Hammond: 'Austerity coming to an end' Budget key points: At-a-glance Hammond hails better borrowing figures Budget calculator What is the digital services tax?The digital services tax is a levy against social media platforms, internet marketplaces and search engines. … [Read more...] about Budget 2018: Tech giants face digital services tax