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DUMP THE DIRECT TAX CODE!

DTC virtually beyond repair, present Income-tax Act should be revised to achieve the underlying objectives! The Direct Taxes Code (DTC) Bill, 2010, was presented in the Lok Sabha on the 30th August, 2010, to replace the existing Income tax, 1961 and Wealth tax Act, 1957 with effect from 1.4.2012. Tax law, which has been subject to extensive review by the Indian Parliament every year and in-depth scrutiny of the...

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...

Now no Capital Gain without Tax Pain!

End Of Tax Honeymoon For Market Investors! Understanding The New Capital Gains Regime New Rules for Computation Present distinction between long term and short term gains to be eliminated. Current exemption for capital gains arising from transfer of personal effects and agricultural land beyond specified urban limits to continue. Base date for computing cost of acquisition shifted from 1st April, 1981 to  1st...

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