Industry body seeks changes in new direct tax codeOctober 10th, 2009 NEW DELHI - An industry body Saturday urged the government to remove some provisions in the Direct Tax Code draft, especially those taxing capital gains arising on indirect transfer of Indian assets. "This can have serious implications in various international transactions like cross-border mergers and transfer of Indian shares in foreign capital markets," the Associated Chambers of Commerce and Industry of India (Assocham) said in a statement.
Critical areas on DTC for detailed examination identified: Pranab MukherjeeOctober 9th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee on Friday announced that the Government has identified seven critical areas on the Direct Taxes Code (DTC) for further detailed examination. At an interactive session with representatives of trade and industry from all over the country, here, Mukherjee said: "The areas are: The concept of Minimum Alternative Tax (MAT) based on gross assets; Capital Gains Taxation in the case of non-residents; The Income Tax Act and the Double Taxation Avoidance Agreement (DTAA); General Anti-Avoidance Rule (GAAR); Issues relating to effective management control and taxation of foreign companies in India; Taxation of charitable organizations; and Shift from EEE to EET taxation system."
On the apprehensions expressed regarding the time schedule for implementation of the new DTC, he assured that next steps would be taken only after a comprehensive review of the draft DTC by taking on board the suggestions received.
New direct tax regime from 2011: MukherjeeOctober 9th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee Friday said a new direct tax regime with rationalised rates and simplified procedures will take effect 2011, even as the government was open to suggestions from all stakehopders to fine tune the proposals. We want to present all stakeholders with a tax regime that is simple and broad based, leading to lowering of tax rates, much better tax compliance and reduced litigation, Mukherjee told a seminar on the new Direct Tax Code here.
India moots tax reforms, Bill likely by end 2009August 13th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee has said that India proposes to reform its archaic tax laws, phase out exemptions, simplify rules on corporate mergers and help improve compliance. "You will find all the direct tax laws, fringe benefit tax, income tax all these have been brought under one umbrella single direct tax code.
Finance Minister to release 'Direct Taxes Code' todayAugust 12th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee will release the draft of the 'Direct Taxes Code' here today. It will be released in the presence of Union Home Minister P.
CII welcomes new direct tax codeAugust 12th, 2009 NEW DELHI - The CII today said that the Government needs to be complimented for the endeavour to simplify the law relating to levy of tax on Income and Wealth. The Direct tax Code Bill and the Discussion paper released today is well within the deadline promised by the Finance Minister in his Budget speech on July 6, it said.
Tax reforms to be expedited, says MukherjeeJuly 6th, 2009 NEW DELHI - A new direct tax code will be introduced in 45 days and bring changes in the indirect tax structures, Finance Minister Pranab Mukherjee Monday said while presenting the union budget for 2009-10 in the Lok Sabha Monday.
Reiterating his commitment to expedite tax reforms, Mukherjee also said he would aim to introduce the goods and services tax by the initial deadline of April 10, 2010.
Poll panel censures Tamil Nadu minister for distributing giftsApril 30th, 2009 NEW DELHI - The Election Commission Thursday censured Tamil Nadu's Transport Minister K.N. Nehru for allegedly distributing free gifts like bicycles, saris and rice to prospective voters.
Product Recalls: chocolate chip cookiesApril 23rd, 2009 Product Recalls: chocolate chip cookiesThe following recall has been announced:
— Alternative Baking Co. Inc. is recalling several types of chocolate chip cookies with code dates of 015 through 036 because the chips appear to contain undeclared milk.
Supplementary charges filed against 4 Delhi terror suspectsApril 15th, 2009 NEW DELHI - Delhi police Wednesday filed a supplementary charge sheet against four suspected Indian Mujahideen (IM) terrorists, including its media cell head Mansoor Asghar Peerbhoy, accusing them of involvement in the serial bombings here last year. In the charge sheet filed in the court of Chief Metropolitan Magistrate Kaveri Baweja, the Special Cell of Delhi Police sought prosecution of Peerbhoy and his two associates - Mobin Kader Sheikh and Asif Bashir Sheikh - and Mohammed Hakim under various provisions of the Indian Penal Code, the Unlawful Activities (Prevention) Act and the Explosive Substances Act.
Delhi Police file fresh charges against suspected militantApril 14th, 2009 NEW DELHI - Delhi Police filed a fresh charge sheet against a suspected Hizb-e-Islami militant and sought a retrial Tuesday, nearly three months after he was acquitted by a court here. Ayaz Ahmed Shah, a suspected militant, was acquitted by a city court in January after the Special Cell of Delhi Police failed to take necessary sanctions for charging him with waging war against the country under the Indian Penal Code and possessing explosives under the Explosive Substance Act.
Election Commission tells parties to ensure purity of pollsApril 13th, 2009 NEW DELHI - As political leaders brace for the Lok Sabha polls beginning Thursday, the Election Commission has asked all parties to scrupulously observe the Model Code of Conduct and set high standards of electoral morality. In a written communication sent to all recognised national and state political parties late Sunday, the poll panel said: 'The Election Commission expects that all political parties, their leaders, workers and supporters as well as their candidates shall scrupulously observe the Model Code of Conduct in letter and spirit.'
While expressing unhappiness at the flouting of norms of the Model Code of Conduct, the Election Commission also asked parties to conduct their electoral campaigns in a way that set 'high standards of electoral morality so as to ensure the integrity and purity of the exercise'.
Blast accused seeks bail for MBA exam, court seeks police nodJanuary 29th, 2009 NEW DELHI - The Delhi High Court Friday asked for response from Delhi Police to a bail plea of a suspected terrorist, allegedly involved in the Sep 13 serial blasts, who wants to appear for an MBA exam next month. Saquib Nisar, a suspected member of the Indian Mujahideen (IM) who has been in custody since Sep 20 last year, pleaded that he should be granted bail to appear in his MBA third semester examination, which begin Feb 7.
Delhi Police file charges for Sep 13 serial blastsJanuary 12th, 2009 NEW DELHI - Delhi Police Tuesday filed another charge sheet in one of the five serial bombings in the national capital Dec 13 that left 26 people dead. The charge sheet accused suspected Indian Mujahideen terrorists Mohammed Sajid, who was killed in the Dec 19 Batla House shootout in south Delhi, and Zeeshan Ahmed of planting an improvised explosive device at Barakhamba Road in the Connaught Place, killing at least three people.
Conduct code violation no ground to set aside election: CourtJanuary 7th, 2009 NEW DELHI - Violation of the model code of conduct of the Election Commission is no ground to set aside the election of a candidate as the guidelines do not have legal sanctity, a Delhi court has ruled. The model code of conduct apparently has no statutory backing and many of its provisions are not legally enforceable and it is the political parties which have themselves consented to abide by the principles embodied in the code, Additional District Judge Kamini Lau said in a ruling this week.
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August 16th, 2009 at 7:18 am
HON.FINANCE MINISTER
SHRI JASAWANT SINGHJI
MINISTRY OF FINANCE
GOVT.OF INDIA
NEW DELHI.
Dear Sir,
SUB: MODEL CODE OF DIRECT TAXES
The model tax laws is always welcome as the existing Income Tax 1961 had become very old and needs change. For the ordinary middle class salaried people enhancement of tax limit @10% upto Rs.10.00 lacs is a big bonanza over and above increase of limit under section 80C from Rs.1.00 lacs to Rs.3.00 lacs.The disappointment of withdrawal of Home loan interest benefit and tax on withdrawal of PPF PF and other savings is like a putting salt on the wounds.
From the angle of middle class salaried people the following points may be considered.
1.The salary employee is honest class of people in paying all types of taxes as generally TDS is deducted from the income received by them. This is not the case with business and professional people. There are few loopholes in our existing structure which are used by almost all the business and professional class to reduce their taxable income.
2.As a middle class person we are paying different taxes in the form of Municipal taxes water and electricity and other utility bill charges which are required as a basic needs of person living in a decent society. The taxes and bills in the case of Municipality like Mumbai are very high on account of high rates. The business people take the benefit of all these expenditure in P & L whereas we are deprived of the same though there is no tax upto Rs.1.60 lacs to both the type of individuals namely salaried and business/professionals. The education expenditure in the form of tution fees paid for the children’s education can be taken under section 80C. If other expenditures which are a basic necessity may be allowed as deduction from the income, this may help people to face the inflationary situation smoothly. This will also avoid payment of taxes on income which is used for paying municipal and other taxes
3.Now a days owning a vehicle two/four wheeler may not be a luxery item but a necessity for a handicapped persons like us. The benefit of depreciation cannot be claimed being a salaried people. Thus the cost of wear and tear enjoyed by the other class cannot be enjoyed by the salaried people.
4.The medical expenditure now a days is becoming costlier and for a handicapped person recurring expenses for purchase of special shoes/calipers & crunches/wheel chairs/different medicines etc are required to be done to remain fit to able to do normal duties of work. Thus the exemption of Rs.50,000/- is not sufficient and same has not increased since 2003-4. The health insurance companies are denying medical insurance cover to the physically handicapped people on the various ground
5.All the long term saving schemes to move to EET regime of taxation. Middle class people are saving under those schemes for living a peaceful retired life and for the expenditure of children education/marriage/medical expenses. As such the interest received under those scheme and blocking period under the various scheme is generally longer. Sometime it is the only bread and butter for the senior citizens whose population is increasing thanks to the medical facilities available.
Hope some changes in the new direct taxes code may take place in view of above points