Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

In a post-budget interaction with industry stakeholders today, <keyword id="20419783" type="General" weightage="20" keywordseo="revenue-secretary" source="keywords">Revenue Secretary</keyword> Sanjay Malhotra highlighted that the government aims to comprehensively review the <keyword id="19985623" type="General" weightage="20" keywordseo="Direct-Tax-Code" source="keywords">Direct Tax Code</keyword> within the next 6 months, and it is too early to say whether or not that would entail any significant overhauls. However, "we would like to have a collaborative approach for its implementation, and would certainly present the draft for public opinion” Malhotra added. Buybacks taxed as dividend Starting October 1, 2024, the amount received by the shareholder on buyback of his/her shares by the company will be treated as dividend income, and will be taxable at the hands of shareholders. Also, the cost incurred by the investor to acquire those shares will not be allowed as a deduction against the income, but can be set off as a capital loss, only against other <keyword id="20619608" type="General" weightage="20" keywordseo="capital-gains" source="keywords">capital gains</keyword>, for a maximum of 8 subsequent years Malhotra explained the government's rationale behind this proviso, noting that buyback does not fundamentally alter the company's capital structure, and like dividend distribution, is a way for the company to give out its surplus. Moreover, it is up to the investor, whether or not they want to participate in a buyback or not. Hence, going ahead, funds from buyback will be deemed as dividend income. Credit on TCS paid Previously, in case your employer has already deducted TCS (tax collected at source) from your monthly salary, it would not be accounted for, or considered while calculating your annual tax liability. As a result, it had to be claimed back separately as a refund, resulting in duplication of processes. However, effective April 1, 2025, salaried employees will be able to adjust the TCS they've already, previously paid while calculating their tax due. The Old tax regime heading towards a sunset? While the officials have given no clarity on this, they noted that the idea of taxation is not to push people into investing, saving or buying insurance for the sole purpose of saving taxes as the old regime did. "It is a moral debate on whether tax regimes are supposed to push people towards financial planning measures like buying health or life insurances. However, as we go ahead, the focus will entirely on greater, more deep-rooted focus on how tax filing and compliance can be simplified and transformed into a hassle-free, smooth process. The new tax regime was finding increased grounding amongst both investors and corporates. For the previous assessment year, 2/3rd of total taxpayers had opted for the new tax regime, while 58% of corporate tax flows had come via them. Loss of indexation benefit only psychological Raman Chopra, Joint Secretary, CBDT, <keyword id="19908390" type="General" weightage="20" keywordseo="Ministry-of-Finance" source="keywords" meta.keywordsubtype="org" meta.entityname="Ministry of Finance" meta.hostid="261" meta.entityid="Ministry of Finance">Ministry of Finance</keyword> noted that scrapping away indexation benefits is only psychological, and tax payers will not have to bear any real losses as such. "Indexation was a complicated process. Think of this as the cost of simplification of the tax process. Now, we only have two holding periods across all asset classes, making it easier. While indexation benefits continues for properties purchased before 2001, investors continue to receive rollover benefits in case they find that their tax incidence under the reduced tax rates is high.

Comprehensive review of the IT Act imminent in 6 months, notes revenue secretary

The first draft of a new simplified <keyword id="20211090" type="General" weightage="20" keywordseo="income-tax-law" source="keywords">income tax law</keyword>, as proposed in the Budget, will be prepared by an internal committee of the tax department and will undertake stakeholder consultation before finalising the legislation, <keyword id="20419783" type="General" weightage="20" keywordseo="revenue-secretary" source="keywords">Revenue Secretary</keyword> <keyword id="301743" type="General" weightage="20" keywordseo="Sanjay-Malhotra" source="Orion">Sanjay Malhotra</keyword> said on Thursday. Malhotra said that the exercise is not linked to bringing a new <keyword id="22542056" type="General" weightage="20" keywordseo="direct-taxes-code" source="keywords">direct taxes code</keyword>, but a comprehensive review of the <keyword id="6354751" type="General" weightage="100" keywordseo="Income-Tax" source="Orion">income tax</keyword> law. Finance Minister Nirmala Sitharaman in her Budget speech earlier this week announced that a comprehensive review of the Income-tax Act, 1961 will be completed in six months. "The purpose is to make the Act concise, lucid, easy to read and understand. This will reduce disputes and litigation, thereby providing tax certainty to the taxpayers. It will also bring down the demand embroiled in litigation," Sitharaman said. To a question whether the review would mean that the government will come with a direct tax code, Malhotra said "It is not a new direct tax code... It is a comprehensive review". He said the first draft of the <keyword id="22542055" type="General" weightage="20" keywordseo="simplified-Income-Tax" source="Orion">simplified income tax</keyword> law, post the review, would be prepared by an internal committee of the tax department. "We would like to have a collaborative approach.... The first draft will be prepared by an internal team and then we will see how to go ahead with stakeholder consultation," Malhotra said at an interactive session with industry chamber Ficci.

First draft of new and simplified Income Tax law to be prepared by internal tax dept committee: Revenue Secretary

If the government takes a taskforce report on direct taxes into account, the personal taxes payers could see some big changes. The committee headed by Akhilesh Ranjan, a member of the Central Board of Direct Taxes, submitted a report to the Finance Minister Nirmala Sitharaman late last year, which sought to increase the tax on the highest income slab to 35%. A <a href="https://www.bloombergquint.com/law-and-policy/direct-tax-code-top-5-changes-recommended-by-the-committee-exclusive">report in Bloomberg Quint</a> citing sources said that the government has given no indication on whether they have taken these recommendations into consideration ahead of the Union Budget 2020. These are the tax rates proposed for different income levels by the panel on <keyword id="46572" type="COMPANY" weightage="20" keywordseo="Direct-Tax-Code">Direct Tax Code</keyword>: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Existing Tax Rates </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Taskforce Recommended Tax Rates </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Upto ₹2.5 lakh </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nil </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nil </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2.5 - ₹5 lakhs </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5-10 lakhs </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10 – ₹20 lakhs </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹20 lakhs to ₹2 crore </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2 crore and above </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">35% </td></tr></tbody></table> It also recommended that surcharges should be done away with altogether. An additional surcharge was levied in the last Budget on those who make over ₹2 crore and ₹5 crore. But they were later rolled partially back on capital gains, to boost investments. SEE ALSO <a href="https://www.businessinsider.in/policy/economy/news/income-tax-slabs-for-2020-and-cuts-proposed-by-finance-minister-nirmala-sitharaman-in-next-budget/articleshow/72975148.cms">Income tax cuts and new tax slabs ⁠— here’s how Indian Finance Minister Nirmala Sitharaman wants to make people shop more</a>

New income tax proposed by a government panel wants a 35% slab, says a report

<ul><li>Changes to the <keyword id="46572" type="COMPANY" weightage="20" keywordseo="Direct-Tax-Code">Direct Tax Code</keyword> is set to hit India’s rich, according to a report.</li><li>The government had appointed a task force that was headed by CBDT member Akhilesh Ranjan. This committee was given the task of submitting a report on the new Direct Tax Code. </li><li>A person will be considered as a non tax resident, only if the individual has not been living in India for seven of the last 10 years. </li></ul><keyword id="131722" type="PERSON" weightage="20" keywordseo="Rich-Indians">Rich Indians</keyword> who find their ways to evade paying tax, by moving to tax havens, might be brought under the Indian tax net. According to <a href="https://www.bloombergquint.com/law-and-policy/direct-tax-code-top-5-changes-recommended-by-the-committee-exclusive">a report by Taxsutra</a>, there could be multiple changes to the Direct Tax Code which could impact the resident rule.This is as per the recommendations of a government-appointed task force headed by CBDT member Akhilesh Ranjan. 182 days to 90 days The committee recommended the government to change the residence rule. Currently, an individual has to be present in India for 182 days or more to be considered a resident. The report highlights that as the current ‘182 day test’ is being misused, the committee asked for the number to be brought down to 90 days. Furthermore, a person will be considered as a non-tax resident, only if the individual has not been living in India for seven of the last 10 years. It will cover a lot more individuals who spend half of the year abroad. Super rich will also have to cough up more as the existing tax rules too. In the last Budget, Finance Minister Nirmala Sitharaman hiked the tax for the super rich in India. She had announced that people earning over ₹5 crore a year would have to pay an additional surcharge bringing up their effective tax rate to 42.7% of their income. Now, Indians who badly want to escape tax might have to take up extreme measures like living in yachts in international waters and land occasionally to evade tax in every country! See Also: <a href="https://www.businessinsider.in/budget/news/union-budget-2020-from-reducing-income-tax-slab-to-increasing-health-budget-these-are-some-suggestions-that-india-has-for-finance-minister/articleshow/73269766.cms?src=hp_bgt">India's Prime Minister asked for budget 2020 suggestions — this is what some of the social media influencers had to say</a>

A government taskforce wants to bring more migrant Indians into the tax net

Simplification of GST, reforms in small savings rate and implementation of <keyword id="46572" type="COMPANY" weightage="20" keywordseo="Direct-Tax-Code">Direct Tax Code</keyword> (DTC) were some of the suggestions given by economists during their customary pre-Budget consultation with Finance Minister Nirmala Sitharaman here on Friday. Among other key suggestions were to attract more investments to support growth; streamlining policy matters and faster resolution of policy issues in all sectors; fiscal management and reforms in the power sector. The economists were optimistic about the India growth story and put forward ways through which the country can achieve the goal of USD 5 trillion economy.
 "We have bottomed out as far as growth reduction is concerned...what can be done to accelerate growth to 7-7.5 per cent," former chief economic adviser Arvind Virmani said after the meeting.
 Implementation of DTC is very important for all the small business, he added.
 He also pitched for simplification of GST and rationalisation of slabs.
 The main focus areas of the meeting included steps needed to achieve USD 5 trillion economy, job-oriented growth with focus on manufacturing and services, transparency of fiscal arithmetic, monetary transmission, government's fiscal prudence and fiscal stimulus, revival of NBFCs and inflation targeting, among others, the finance ministry said in a statement.
 There were also suggestions with regard to ways to enhance rural demand; improving oversight of financial markets; boosting agricultural exports and simplifying procedures to give financial savings a shot in the arm.
 Along with the finance minister, the meeting was attended by Minister of State for Finance Anurag Thakur, Finance Secretary Rajiv Kumar, Economic Affairs Secretary Atanu Chakraborty, Revenue Secretary Ajay Bhushan Pandey, and other senior officials of the ministry.
 Some of the economists who were part of the meeting included Rathin Roy, Director, NIFP; Shekhar Shah, Director General, NCAER; Surjit S Bhalla, Managing Director, Oxus Investment; Ajit Mishra, Director, Institute of Economic Growth and Sachin Chaturvedi, Director General, RIS. See also: <a href="https://www.businessinsider.in/policy/economy/news/income-tax-slabs-for-2020-and-cuts-proposed-by-finance-minister-nirmala-sitharaman-in-next-budget/articleshow/72975148.cms">Income tax cuts and new tax slabs ⁠— here’s how Indian Finance Minister Nirmala Sitharaman wants to make people shop more</a> <a href="https://www.businessinsider.in/business/news/niti-aayog-member-bats-for-2-gst-slabs-says-rates-should-not-be-revised-frequently/articleshow/72965580.cms">NITI Aayog member thinks that India should have only two GST slabs</a>

Indian economists tell Finance Minister Nirmala Sitharaman to simplify GST and direct taxes

<ul><li>According to reports, a taskforce proposed a uniform rate of tax at 25% for both foreign and domestic companies. </li><li>It is also considering doing away with dividend distribution tax, which will help retail investors. </li><li>As per the new code, ‘assessing units’ will replace ‘assessing officers’. </li></ul> The <keyword id="3264804" type="PERSON" weightage="20" keywordseo="indian-taxation-system">Indian taxation system</keyword> has earned more red marks than their international counterparts in the last decade or so. Not only does the country have one of the most complex taxation system in <a href="https://www.thehindubusinessline.com/economy/india-is-second-most-complex-tax-jurisdiction-deloitte/article9714344.ece">the Asia Pacific</a>, it is also opaque making it tougher to interpret leading to disputes. But the country’s finance minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> is looking to change all that. She is known to have appointed a government taskforce which will rethink the entire system, according to<a href="https://economictimes.indiatimes.com/news/economy/policy/task-force-on-direct-taxes-panel-for-review-of-tax-brackets-surcharges/articleshow/70746712.cms"> an ET report</a>. The panel has proposed to alter tax brackets, revamp the Income Tax Act and make it tax-payer friendly. The report also quoted a government source which said that the new regime that the current government will herald will make it easy for taxpayers to comply with. Lesser tax, fewer brackets This includes individual taxpayers as well as businesses. According to a <a href="https://www.business-standard.com/article/economy-policy/direct-tax-code-2-0-task-force-for-big-relief-to-individual-taxpayers-119082000023_1.html">Business Standard report</a>, the Direct Tax Code 2.0 as they called it, proposed a uniform rate of tax at 25% for both foreign and domestic companies. This would bring in more foreign investments into the country. It is also considering doing away with dividend distribution tax, which will help retail investors and also those companies which would want to reward their shareholders. This would be a welcome relief for stock markets which have been fighting a losing battle with the government over clarification on Goods and Services Tax on foreign portfolio investments or FPIs. Temporary surcharge This Budget also made an unpopular move to introduce a surcharge on the super rich. The government increased tax on those with annual income of ₹2.5 crore to 25% from 15%. Those who earn more than that were to be taxed at 37%. The panel is recommending the government to turn this surcharge on super-rich ‘temporary’ providing relief to the many high-networth individuals in India. Managing litigation The report also said that as per the new code ‘assessing units’ will replace ‘assessing officers’. It also allows for settlement via mediation instead of prolonged tax battles which financially stress the taxman as well as the assessee. Tax litigation has been affecting the government as well as the taxpayers due to long-standing court battles. As much as ₹5.71 lakh crore is<a href="https://timesofindia.indiatimes.com/business/india-business/tax-disputes-of-rs-5-7l-cr-tied-up-in-pending-cases/articleshow/70166658.cms"> tied up in</a> tax litigation as appeals on tax decision pile up. In fact, Central Board of Direct Taxes itself said that it will focus on litigation management. SEE ALSO <a>Indian Prime Minister's economic advisor has 3 ideas to keep the economy running fast, on its own</a>

Direct taxes in India will be a lot simpler if Nirmala Sitharaman accepts these 3 proposals

<ul><li>The Indian government just proposed modifying the tax slabs, allowing for full tax rebate on incomes up to ₹500,000. </li><li>It’s a populist move in the interim-budget, also termed the ‘election budget’. </li><li>The announcement could potentially prove to be controversial once the Direct Tax Code Report comes out on February 28.</li></ul>The middle-class in India has been hit hard by several indirect taxes, rising prices, and income hasn’t nearly caught up. Since today’s budget was an interim budget, tax breaks and policy changes weren’t expected, but realignment of the tax slabs was on many wish-lists. The Indian government has announced relief for individual middle-class taxpayers extending the non-taxable slab upwards to ₹500,000. "The benefit will be to only those taxpayers whose total income doesn’t exceed ₹500,000. The moment it exceeds ₹500,000, tax will start from ₹250,0000 at 5% up to ₹500,000 and 20% from ₹500,000 to ₹1 million," according to Ved Jain, former president of the Institute of Chartered Accountants of India. Piyush Goyal, the interim finance minister who presented the budget, also clarified that even people will gross income of upto ₹650,000 may not be required pay any income tax if they make investments in provident funds, specified savings and insurance etc. Goyal added that this move will allegedly provide tax benefit of ₹185 billion to an estimated 30 million Indian middle-class taxpayers. Essentially, you won’t have to pay any tax if you have ₹7.5 million tucked away in fixed deposits and no other income because you'll only be earnings ₹450,000 a year assuming an interest rate of 6%. It’s an apt populist move by the Modi government considering that they fell short on their promises of increasing employment from 2014 and demonetisation disrupted the economy. Not the first time In 2014 budget, the minimum tax exemption limit was raised from ₹200,000 to ₹250,000. Along with that, the limit under 80C was hiked by ₹50,000 to ₹150,000. - so essentially, individuals can reduce up to ₹150,000 from their total taxable income. The new tax slabs In its pre-budget memorandum, the Confederation of Indian Industry (CII) had suggested that the tax rate should be zero from income up to ₹500,000, while 10% tax should be levied on income upto ₹1 million and 20% on income up to ₹2 million and 25% on income beyond ₹2 million. Cuts in income-tax rates have invariably resulted in higher revenues in the past, and there is no reason why they should not generate a similar response in the future. India has generally been a non-compliant society, where avoiding and evading tax plague the economy. A tax cut is a temporary incentive for both since it drives down the incentive to avoid compliance. Introducing new tax slabs also puts more money in hands of the taxpayers increasing consumption demand. The requirement for borrowing goes down which, ideally, results in interest rates going down. The new tax slabs may have appeased the country but the Direct Tax Code Report is coming up on February 28 that could quickly turn the tables on the government.

No tax proposed on annual income up to ₹500,000

New Delhi, Mar 8 () Rural distress should be addressed through developing infrastructure and pushing demand by increasing pace of fund transfers under PM-Kisan and employment guarantee schemes, according to an industry-banking survey. Banks are currently exercising caution while taking exposure to large enterprises due to apprehensions on asset quality, lower economic growth and sector-specific risks, among others, said the 'FICCI-IBA Bankers' Survey July-December 2019'. A total of 18 banks from public and private sectors and foreign banks participated in the survey. These banks together represent about 50 per cent of the banking industry by asset size. Banks are of the view that rural distress should be addressed through laying emphasis on rural infrastructure development and stimulating demand by increasing the pace of fund transfers under the PM-Kisan and MGNREGA schemes, industry body FICCI said in a release on Sunday. Some of the respondent banks also suggested that the government should undertake structural land and labour reforms while taking measures to increase job creation in the country. A large number of participating bankers have mentioned that addressing the taxation issues by launching a GST 2.0 regime and bringing a direct tax code should be the top priority of the government at this moment, it said. The lenders also recommended an increase in capital flow into micro, small and medium enterprises (MSMEs), which form a crucial part of the economy. They also said an online platform should be developed to help banks accelerate the SME lending process. Their suggestions also include development of creative ways of credit assessment such as using psychometric testing, cash flow estimates or qualitative credit assessment and keeping NPA in the sector under check through reclassification of the Income Recognition and Asset Classification norms for MSMEs. The survey also found that lower proportion of respondent banks reported a decline in non-performing assets (NPAs) as compared to the previous survey. "As compared to the first half of 2019 in which nearly 52 per cent of the respondents had reported a decline in the NPA levels, the proportion of respondent banks citing a reduction in NPAs in the current round of survey has reduced to 39 per cent," it added. The proportion of the banks reporting a rise in NPAs, on the other hand, has shown a slight increase to 28 per cent as against 26 per cent in the preceding survey. Among the key sectors with high level of NPAs were infrastructure, metals, iron and steel, engineering goods and textiles. KPM HRS

Rural distress can be addressed via infra building, demand boost by PM Kisan, MGNREGA: Survey

The neighbourhood shopkeeper has been hurt more than modern retail chains in <keyword id="6359453" type="UNKNOWN" weightage="20" keywordseo="consumption">consumption</keyword> slump, and the industry will have to evolve innovative solutions to come out of it, <keyword id="6361485" type="ORGANIZATION" weightage="20" keywordseo="marico">Marico</keyword> Chairman <keyword id="126855" type="PERSON" weightage="20" keywordseo="Harsh-Mariwala">Harsh Mariwala</keyword> has said. He termed the <keyword id="29405" type="COMPANY" weightage="20" keywordseo="slowdown">slowdown</keyword> in consumption -- a major factor blamed for pulling down GDP growth to a six-year low -- as a "phase". The economic growth slowdown is a "reality" but all should keep a forward-looking approach to come out of it, he told .
 "While modern retail is showing better numbers, it is at the cost of general trade. It is just that one channel is compensating for the other channel. However, an overall low pick-up is a reality which is what FMCG (fast-moving consumer goods) companies have been progressively experiencing," Mariwala said.
 There is a need for the government to unleash both short-term and long-term reforms to reverse the slowdown, he said adding that there is no quick fix or set formula to fight the same.
 Listing out potential measures that can be taken, he pitched for making companies with less than Rs 1 crore revenues pay GST on a quarterly basis rather than monthly, reduction in the GST slab rates, adoption of direct tax code, bringing down land costs, reduction in real interest rate and upskilling incentives for auto workers to work on electric vehicles.
 To push up the consumption demand, Mariwala said the government needs to take steps to increase liquidity in the market and boost sentiments.
 He said businesses need to be innovative and take an opportunistic view of things by making fundamental improvements in their models.
 Companies need to look internally to counter cyclical "problems", he said adding that some companies have thrived in the worst-performing sectors by doing something impactful for the customers.
 "Businesses should not get swayed by the Indian <keyword id="34412" type="ORGANIZATION" weightage="20" keywordseo="economy">economy</keyword> not growing at higher growth rates. They should do something so that they stand out and they are certain to reap the rewards that come with making that effort," he said. Mariwala said inclusion of research and development spends as part of the corporate social responsibility (CSR) mandate will act as a nudge to companies to look at innovation, and also give rise to public-private partnerships. He also said there is a need for changes in the education system, which depends excessively on rote.
 "With too much emphasis on standardised test results and benchmarking, the education system can stifle children's natural creative ability making it difficult for them to be innovators later in life," he said.
 Offbeat approaches and methodologies that stir curiosity and instil fearlessness among the children is also needed, Mariwala said.
 In India, many sectors like agriculture are ripe for innovation, which requires attention on productivity, processing and supply chains, he said.
 Mariwala said that having benefitted from innovations as an entrepreneur, he has started the non-profit Marico Innovation Foundation.
 "We believe that innovation can spur creation and sustenance of successful and enduring Indian brands. That will enable India to reposition itself as a global economic superpower," he said. AA HRS

Consumption slump just a phase; neighbourhood shops hit hard, says Harsh Mariwala

New Delhi, Dec 10 () A Parliamentary panel on finance on Tuesday observed that the Goods and Services Tax (GST) collection has slowed down in recent months and asked the government to prevent misuse of input tax credit.
 Two years after its launch, the government has begun the review of GST, including a possible resetting of rates along with the slabs, the Standing Committee on Finance headed by Jayant Sinha said in its report tabled in Parliament.
 "In this connection, the committee are constrained to observe that GST collections have somewhat slowed down in recent months as compared to the target. The committee would therefore expect the government to resolve all the troubling issues related to GST at the earliest to achieve the desired revenue buoyancy," the panel said.
 GST revenue collection crossed the Rs 1 lakh crore mark after a gap of three months in November, with the revenue growing by 6 per cent to Rs 1.03 lakh crore in the month. The collection stood at Rs 95,380 crore in October.
 "The committee would also urge the Department of Revenue to remain vigilant so as to prevent misuse of provisions as input tax credit and enhance monitoring of overall compliance," the committee said.
 It further asked the revenue department to have systematic reports and conduct feedback surveys from taxpayers to evaluate whether GST is operating smoothly.
 On large amount of tax refunds and the accruing interests on it, the committee said the processes should be revisited to dispense with the "need for raising realistic demands as also payments of disproportionately large advance tax by assesses".
 In 2017-18, the direct tax refunds stood at Rs 1.52 lakh crore and Rs 17,603 crore as interest, which rose to Rs 1.61 lakh crore and Rs 20,566 crore respectively in 2018-19.
 It also suggested that the interest component in tax refunds should be reflected in the Union Budget itself so that it passes through parliamentary scrutiny and also has a deterrent effect.
 Further, in order to broaden the tax base, it asked the government to bring the new Direct Tax Code in line with the global best practices, keeping in view the country's economic needs.
 For assessment year 2018-19, the committee noted that the number of taxpayers were 8.45 crore, out of which 8.04 crore were individual taxpayers.
 "Assuming the total population of the country to be 130 crore, the percentage of taxpayers in India works out to be a mere 6.2 per cent. The committee would, therefore, urge the department to reformulate their policies/strategies so as to have wider tax base, which would help the country move towards a truly comprehensive direct tax regime," the committee said.
 In a separate report, the committee asked the Department of Economic Affairs, Expenditure and Financial Services to expedite the payments to vendors and contractors so that the private sector participants doing business with the government are not placed under financial stress.
 "In addition, timely payments are necessary to maintain transaction velocity in the economy," it added. KPM ABM

Par panel asks govt to prevent misuse of input tax credit under GST as collection slows

New Delhi, Dec 8 () The budget-making team of the Finance Ministry is short of two key officials, including a full-time expenditure secretary, while the preparation for the second budget of Modi 2.0 government has shifted into top gear.
 The budget for 2020-21 to be presented on February 1 is keenly awaited for the expected second wave of structural reforms for pulling out the economy from its over six-year low growth of 4.5 per cent.
 In addition to expenditure secretary, the position of joint secretary (Budget), one of the key officials in the entire Budget-making process, is also vacant for almost three months.
 The post of Expenditure Secretary fell vacant after the appointment of G C Murmu as the first lieutenant governor of the newly-created Union Territory of Jammu and Kashmir. Murmu relinquished the post of Expenditure Secretary on October 29 and subsequently, the additional charge of the Department of Expenditure was given to Atanu Chakraborty.
 Chakraborty, a 1985-batch IAS officer of the Gujarat cadre, is Secretary Economic Affairs in the Finance Ministry.
 After over one year stint in the Department of Investment and Public Asset Management (DIPAM), Chakraborty was appointed Economic Affairs Secretary in July this year in a major bureaucratic reshuffle.
 The finance ministry kick-started the exercise to prepare the annual budget for 2020-21 from October 14 with pre-Budget/RE (Revised Estimate) meetings. The series of meetings with different departments and ministries concluded last month.
 The Budget Estimates for 2020-21 are provisionally finalised after the Expenditure Secretary completes discussions with other secretaries and financial advisers.
 The second budget of Finance Minister Nirmala Sitharaman is considered to be crucial as it will come in against the backdrop of a slowdown in the economy.
 The Reserve Bank in its monetary policy last week downgraded the growth forecast for 2019-20 to 5 per cent from the earlier projection of 6.1 per cent.
 To beat the slowdown, the Finance Minister has said reforms to boost the economy would continue and also hinted at tweaking personal income tax rates in the upcoming Budget.
 The government is examining the direct tax code (DTC) report concerning Personal Income Tax. It is considering the rationalisation of the personal income tax rate for boosting consumption.
 Following the reduction in corporate tax in September, there has been a growing demand for a slash in the personal income tax to buttress consumption.
 In the biggest reduction in 28 years, the government in September slashed corporate tax rates up to 10 percentage points as it looked to pull the economy out of a six-year low growth with a Rs 1.45 lakh crore tax break.
 Base corporate tax for existing companies has been reduced to 22 per cent from 30 per cent, and to 15 per cent from 25 per cent for new manufacturing firms incorporated after October 1, 2019, and starting operations before March 31, 2023. DP ANZ
MR

Budget-making team of Finance Ministry short of two key officials

<ul><li>The government has introduced new 'optional' tax slabs for individual taxpayers.</li><li>Instead of five different tax slabs, the new tax regime has seven tax slabs.</li><li>It also the lowers the tax for income between ₹12.5 lakh to ₹15 lakh from 30% to 25%.</li></ul>New tax slabs have been proposed by the Direct Tax Code panel to boost consumption and investment. The government hopes that increased purchasing power will push demand ahead of supply, incentivising firms to ramp up production which will reflect in GDP growth in the next financial year. The new tax slabs increase the minimum taxable limit from ₹2.5 lakh to ₹5 lakh. At the other end of the segment, anyone earning up to 15 lakh annually will be subject to 25% tax rate instead of 30%. However, the new tax slabs are only applicable to people who do not opt for exemptions under the tax regime -- including deductions under 80C of PF, LIP, standard deduction, LTC, house rent allowance, minor income exemption, interest deduction on home loans among others. Essentially, individual tax payers now have the choice to choose between the two tax regimes depending on their requirements. "The complex tax regime for taxpayers with the slabs rejig. With the optional new regime, taxpayers will have to evaluate what works better. Those committed to long term saving and investing via 80C may be discouraged and this may likely demotivate taxpayers from tax-saving linked investing," said Archit Gupta from Clear Tax. There will be no tax levied on annual income upto ₹5 lakh. However, if you cross that threshold tax will charged for income above ₹2.5 lakh. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup></colgroup></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Previous Tax Rate </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">New Tax Rate </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Up to ₹2.5 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nil </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nil </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2.5 lakh to ₹5 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5 lakh to ₹7.5 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹7.5 lakh to ₹10 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10 lakh to ₹12.5 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹12.5 lakh to ₹15 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Above ₹15 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td></tr></tbody></table> The government’s move to stimulate the economy As companies look to increase output, job creation will go up or at least arrest job losses taking the pressure off of the country’s unemployment crisis. More jobs, would again, increase purchasing power resulting in a growth cycle. It could also increase the government’s burden On the flip side, experts expect lower tax rates to weigh on the exchequer. Tax revenue collection has often been criticized for being inefficient. However, the ultimate outcome depends on how the cycle of investment and economic growth plays out. Tax revenue could increase if the new tax cuts result in greater compliance over the next two to three years. This is also an attempt by the government to simplify the tax laws, which are known to be one of the most complicated in the world. See also: <a href="https://www.businessinsider.in/budget/news/budget-2020-allocates-6000-crore-for-bharatnet-to-connect-1-lakh-gram-panchayats/articleshow/73832949.cms">Budget 2020 allocates ₹6,000 crore for BharatNet to connect 1 lakh Gram Panchayats</a> <a href="https://www.businessinsider.in/budget/news/budget-2020-aayushman-bharat-allocation-to-eradicate-tuberculosis-by-2025-announced-by-nirmala-sitharaman/articleshow/73832769.cms">Budget 2020 aims to eradicate tuberculosis by 2025 using AI and ML to empower Aayushman Bharat</a> <a href="https://www.businessinsider.in/budget/news/budget-2020-nirmala-sitharaman-wants-nabard-to-geo-tag-cold-storage-facilities-to-make-them-more-efficient/articleshow/73832369.cms">Nirmala Sitharaman wants NABARD to geo-tag cold storage facilities to make them more efficient</a>

New income tax slabs 2020, income up to ₹5 lakh exempt

As the <keyword id="547606" type="ORGANIZATION" weightage="20" keywordseo="interim-budget">interim budget</keyword> approaches, there is widespread hope that the Modi government will change <keyword id="120700" type="PERSON" weightage="20" keywordseo="Income-Tax-slabs">income tax slabs</keyword>. Last year’s budget did not alter the income tax slabs in any way and the exemption limit and the income tax rates continued like before till date. Over the past interim budgets, the central governments awaiting the elections did not announce any major steps. Nevertheless, reports now suggest that the Modi government may break the convention this time in order to woo voters. It’s being widely speculated the government might double the income tax exemption threshold from the present Rs 2.5 lakh to Rs 5 lakh according to an IANS report. It is also possible that Jaitley might restore the tax-free status of the medical expenses and transport allowances, reported the news agency, quoting the government sources. As the PTI reports, raising the income tax exemption limit to ₹ 5 lakh per annum is one of the major demands that the Confederation of Indian Industry (CII). The industry chamber has also pressed to increase the deduction under 80C to Rs 2.50 lakhs which is believed to encourage more investments. Another suggestion made by the CII while expecting the interim budget is to bring down the highest personal income tax rate from 30% to 25% which will give room for exemptions towards medical expenses and transport allowances. If the income tax slabs are altered before releasing the Direct Tax Code report on February 28, the process may become contentious. The new revision anticipated is expected to make the income tax rates more progressive by bringing relief to the people in the 5% and 20% slabs, reported Mint earlier on May 14. As per the current tax slab, the income under Rs 2.5 lakh will be exempt from tax. Income between Rs 2.5 lakhs and 5 lakhs will invite 5% income tax and earnings between Rs 5 lakhs and 10 lakhs will attract 20% taxes while anything beyond 10 lakhs will be taxed at 30%.

Here’s what people expect on income tax from the upcoming Indian budget

The <a href="http://www.businessinsider.in/searchresult.cms?query=budget+2017&amp;sortorder=effectivedate">Budget for 2017</a> is riding on a lot of expectation in the aftermath of <a href="http://www.businessinsider.in/searchresult.cms?query=demonetisation&amp;sortorder=effectivedate">demonetisation</a>. It’s almost as if people are hoping the government to now make good for the hardship and the pain they endured. Some key states are due for elections in the coming months. And this seems to be the perfect backdrop to make it a dream budget for households and businesses. 
 
Lower tax burden - Since the beginning of time, governments have faced pressure to cut <a href="http://www.businessinsider.in/searchresult.cms?query=taxes&amp;sortorder=effectivedate">taxes</a> on income. This pressure is now rising from the working class, who are asking for higher exemption limit in the wake of <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword>. Rs 2.5lakhs is the existing exemption limit. Income disclosure scheme (IDS) has helped the government add around Rs 30,000 crores to its kitty. But the real test of these schemes lie in their ability to bring more people in to the tax net, leading to wider compliance and tax filing. Every increase in the minimum taxable limit or lowering of tax rates, means fall in revenue for the government. The government needs to find that sweet spot where it can balance this loss without severely impacting its fiscal deficit. With Niti Aayog recommending tax slab expansion, a revision may be in the offing. 
 
Popularising NPS – NPS is a credible alternative to EPF for those who prefer equity linked investing to build a corpus for their retirement. It may be hard to sustain high returns on EPF, and therefore the government can focus on offering people an alternative in the form of NPS. The government has made efforts to ease entry to NPS by making it aadhaar linked, more clarity on taxes on its withdrawals are required. NPS is structured in the form of TIER1 and TIER2 accounts. While investments in TIER 1 are eligible for tax benefits. TIER2 is a voluntary investment account. Withdrawals are allowed from TIER 1 post retirement. Investors can withdraw from TIER 2 at any time. However, PFRDA must put together details on tax on withdrawals from TIER 2. Investments to TIER1 may be limited due to tax benefit being Rs 50,000 in a financial year, once there is clarity about TIER2, investors can enjoy the flexibility that comes with TIER2 accounts, as well as stay committed to investing for their retirement. 
 
Use of India Stack – The use of India Stack for Identity (Aadhaar) and payments (UPI) is set to fuel innovation in the fintech sector. Investing through machine learning and AI will have the capacity to reach millions of taxpayers and bring them on board easily and with low cost means. Customers who want buy mutual funds, borrow loans, will be authenticated seamlessly via the aadhaar framework without having to go through paperwork or lengthy approvals. Those have suffered financial exclusion will now be brought online quickly. The government has an important role to play in this journey, It can offer incentives that encourage entrepreneurship in this sector and offer faster regulatory approvals. 
 
Roll out GST – 2017 will turn out to be a historic year for indirect taxes due to launch of GST. This presents immense opportunity for businesses to adopt technology as a means to achieve their objectives. Adoption of GST would lead to wider compliance and replace physical C-forms, VAT forms, state tax approvals and tax payments with electronic and digital forms and payments. We hope the government will stay on course with GST, allowing only very necessary exemptions and offering incentives to small businesses to adopt technology. 
 
Reform tax laws – The finance minister must make use of comfortable majority in the house to bring in simplification of tax laws. Some of the deductions are not relevant in today’s times. For example, children’s education allowance which stands at Rs 100 per month for maximum two children or hostel allowance which is exempt up to Rs 300 per month for maximum two children. Medical reimbursement that stands at Rs 15,000 is meagre in today’s times. Direct tax code may be considered for review once GST has been put in place. 
 <keyword id="6599769" type="UNKNOWN" weightage="20" keywordseo="Budget-2017">Budget 2017</keyword> is will be both historic and promising for India. 
 
 (This article is authored by Archit Gupta, Founder &amp; CEO ClearTax.com)

You Searched For "Direct Tax Code" and got 14 results

Comprehensive review of the IT Act imminent in 6 months, notes revenue secretary

Ira Alok Puranik

First draft of new and simplified Income Tax law to be prepared by internal tax dept committee: Revenue Secretary

PTI

New income tax proposed by a government panel wants a 35% slab, says a report

BI India Bureau

A government taskforce wants to bring more migrant Indians into the tax net

Sanchita Dash

Indian economists tell Finance Minister Nirmala Sitharaman to simplify GST and direct taxes

PTI

Direct taxes in India will be a lot simpler if Nirmala Sitharaman accepts these 3 proposals

Katya Naidu

No tax proposed on annual income up to ₹500,000

Prabhjote Gill

Rural distress can be addressed via infra building, demand boost by PM Kisan, MGNREGA: Survey

PTI

Consumption slump just a phase; neighbourhood shops hit hard, says Harsh Mariwala

PTI

Par panel asks govt to prevent misuse of input tax credit under GST as collection slows

PTI

Budget-making team of Finance Ministry short of two key officials

PTI

New income tax slabs 2020, income up to ₹5 lakh exempt

Prabhjote Gill

Here’s what people expect on income tax from the upcoming Indian budget

BI India Bureau

Expectations from Budget 2017 have increased post demonetisation. Here’s what the tax experts wish for

Guest Author

Popular Keywords

Buying Guides