Pranab Mukherjee introduces new tax code

Wednesday, August 12, 2009, 17:50 [IST]

New Delhi, Aug 12: In a bid to provide a simple tax structure, the Government of India has released a fresh Direct Tax Code.

"We want to promote stability," the Finance Minister, Mr Pranab Mukherjee said, while releasing the Direct Tax Code.

This new code will be replacing the 1961 Income Tax and other direct tax laws.

The finance minister added, that the new code will provide for a simple structure for capital gains tax, savings instruments and non-profit organisations. He also added that there will be less scope for litigation.

"We expect to have better compliance and better collection of taxes," Mr Mukherjee was quoted as saying in a news agency report.

OneIndia News

Topics: pranab mukherjee, income tax

Other articles published on August 12, 2009

'War call' from India sends Pak into tailspin

Saturday, December 6, 2008,11:17 [IST]

Islamabad, Dec 6: Pakistan went into a state of 'high alert" last weekend after President Asif Ali Zardari received a threatening phone call made by someone who said he was Indian External Affairs Minister Pranab Mukherjee.Several political, diplomatic and security sources have confirmed to the Dawn that for nearly 24 hours last weekend, the incident continued to send jitters across the world. To some world leaders the probability of an accidental war appeared very high.It all started late.....

Indo-Sino army exercise to counter terror begins

Saturday, December 6, 2008,11:25 [IST]

Belgaum (Karnataka), Dec 6: The first-ever Sino-Indian military combat exercises on Indian soil to counter terror and insurgency began on Sarurday, Dec 6 morning.“The Sino-Indian military joint exercises are drills. We are looking for confidence-building measures," said. Major General V K Narula, Additional Director General (Public Information) at the Army Headquarters, here. “The joint training exercise is based on a Memorandum of Understanding signed by the defence ministers of two countries," said the leader of Chinese Army delegation,.....

Limitless Updates

Business News

News Archives

'Live bomb found in Nagpur's Crescent hospital'

Sunday, December 7, 2008,12:56 [IST]

Nagpur, Dec 7: Nagpur police on Sunday, Dec 7 has said that they have found explosives in a hospital. Reports say that a man warned Aziz Khan, a doctor at Crescent Hospital that a bomb had been placed near the hospital entrance and threatened of dire consequences within ten minutes. Patients were evacuated and a police bomb squad and sniffer dog were called in. Police said they recovered the explosives and an investigation was on. “While searching after the.....

User Comments

Bobby 19 Aug 2009 04:43 pm

Income Taxes of 20 per cent and 30 per cent are not advisable, as higher income groups may consider it painful to pay high taxes and there are chances that they may opt to evade taxes in one way or the other. Well, Income Tax may be considered to be charged at a single flat rate of 10 per cent on total Gross Income as TDS just like a Service Tax only, the minimum. However, for middle class/poor people, this 10 per cent Income Tax on total gross income may be borne by Employer and Employee in the following ratio: Gross Income Employer : Employee upto 50,000 Borne by Employer-Full 50,000 to 1 lac 3 : 1 lac to 1.5 lacs 2 : 2 1.5 lacs to 2 lacs 1 : 3 More than 2 lacs Borne by Employee-Full There may be lot of retaliation/dissentment from the lower income groups for paying single 10% Income Tax on Gross Total Income. For them, Government may consider reduced/lower single slab Income Tax with 2 per cent, 4 per cent, 6 per cent and 8 per cent on Total Gross Income upto Rs.50,000, Rs.1,00,000, Rs.1,50,000, Rs.2,00,000 respectively, in the form of TDS. Incomes from 1. Interest 2. Dividends 3. Short / Long Capital Gain 4. House Property may be considered to be charged at a single flat rate of 10 per cent as TDS just like a Service Tax. However, people below the poverty line may be given exemption of this 10 per cent Tax. Initially, Income Tax of single flat rate of 10 per cent on total Gross Income as TDS may be considered to be applicable for employees of Government, Public Sector Undertakings and Public Limited Companies. Its scope may be further extended to Private Limited Companies, then firms, then wholesalers, then retailers and so on. Wealth Tax may be considered to be abolished. STT may be considered to be allowed to be continued and may not be considered to abolish the same. When all the incomes are charged at a single flat rate of 10 per cent, then ultimately, the revenue from Income Tax shall definitely be manifold.