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Three More Days Before Your Gifts Get Taxed As Income!

Purchases Below Fair Market Value Also Trapped In Tax Net From 1st October’09 If your friend had promised you to gift a diamond studded gold watch worth Rs.3 lakhs, encash that promise in three days. Delay may cost you dear, since the receipt of this gift after 30th September, 2009 will be treated as your taxable income, attracting a straight income-tax of Rs.92,700, if you fall in the top tax-bracket of 30.9%....

Drive Home Amazing Tax Saving!

Purchase New Car Before September, ‘09 And Recover 25% Of Your Car Cost By March, ‘11 Note the figure ‘632,’ being the Cost Inflation Index just announced for FY 2009-10. This would be helpful in computing any taxable long term capital gains earned by you in the current financial year. 50% Depreciation on Car Purchase Until September             Planning to purchase a new motor car for your business or professional...

Looking at London, Talking to Tokyo!

The Code boasts of incorporating simplicity, well accepted principles  & best international practices.’ Does it achieve or deceive on this count?                  The Direct Tax Code claims that its attempt is “to simplify the language to enable better comprehension and remove ambiguity to foster voluntary compliance.” Just consider this. Section 284 dealing with ‘definitions’ defines as many as 318 terms and...

Tax Axe To Chop Charities Too!

Religion & Politics Sheltered As Taxman’s Holy Cow! Complex Provisions To Perplex Charities New Jargon – Fresh Norms  Charitable trust to bear the new identity of ‘Non-Profit Organisation (NPO).’   Charitable purpose replaced by the new phrase ‘permitted welfare activity (PWA).’  Fresh procedure for NPO registration to be undertaken by all charities.  Different & elaborate norms for computing gross receipts...

Minimum Tax brings Maximum Woes!

MAT At 2% On Value Of Gross Assets Can Spell Corporate Doom! Companies floored on MAT by hard tax punch! Minimum Alternate Tax (MAT), to be paid at 2% on the gross value of assets of a company, presumes 8% average rate of return on assets, an impractical economic assumption in several cases.  While Code aims at encouraging investment-linked tax incentives, the proposed MAT will be a huge disincentive for capital...

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