Income Tax

Recent Posts

Corporate Income Tax: small benefits, but SEZs dealt a MAT blow

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The Special Economic Zone tax bonanza will end, if the Budget proposals pass in their current form. Barring this, the Budget does not have any nasty surprises for companies.

Highlights:
The corporate surcharge has been lowered from 7.5% to 5%. That reduces the effective corporate tax rate from 33.2% to 32.4%, which is a nice, even if small, relief for Indian companies. The new rate will be 30% plus a 5% surcharge, which works out to 31.5%, and after adding the education cess of 3%, it works out to 32.4%.

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Filed under: Companies, Top News, Income Tax, Minimum Alternate Tax, Policy Accounting, Law and Taxation, Union Budget

New Income Tax Code: lower rates, fewer exemptions

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Finance Minister Pranab Mukherjee stuck to his promise made in his Budget speech and has put the draft Direct Tax Code in the public domain. The government is asking for comments, before it is introduced in parliament. Over the years, the Income Tax Act, 1961, has been supplemented by several amendments, interpretations and rules. Continue Reading →

Filed under: Economy+Policy, Top News, Direct Tax Code, Government, Income Tax

KPMG India’s Budget highlights

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KPMG India has analysed the implications of the budget in two parts. The report that talks about the Budget Highlights says in a foreword it is reassured by the government’s stand reiterating a commitment to bring in GST by April 2010. It also talks about issues like the new direct tax code, setting up of an alternative dispute resolution mechanism and empowering the Central Board of Direct Taxes to formulate safe harbour rules for transfer pricing in international transactions.
 

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Filed under: Economy+Policy, Quick News, 2009-10, Cenvat, Income Tax, KPMG, Tax, Union Budget