India Tax Latest News And Updates
The bill to amend the VAT law in Delhi, thus enabling the AAP government to regulate tax rates on petroleum products, liquor and aerated drinks, was passed by the assembly on Tuesday, amid a walkout by the opposition BJP. The Delhi Value Added Tax (Second Amendment) Bill was passed as the three BJP lawmakers walked out and Leader of Opposition Vijender Gupta tore a copy of the bill. Finance Minister Manish Sisodia however sought to assure that the amendment will not led to increase in prices. The AAP government on Monday introduced an amendment to the Delhi Value Added Tax (Second Amendment) Bill 2015, which might lead to a hike in prices of petroleum products, tobacco and aerated drinks. Source: IANS
The AAP government on Monday introduced an amendment to the Delhi Value Added Tax (Second Amendment) Bill 2015, which might lead to a hike in prices of petroleum products, tobacco and aerated drinks in the capital. Currently, VAT on goods under the fourth schedule of Value Added Taxes in Delhi is fixed at 20 percent. The proposed amendment will enable the AAP government to impose VAT varying from 12.5 percent to 30 percent. Watches worth above Rs.5,000 will also come under this category. The amendment also aims at facilitating online filing of applications for cancellation of registration. Source: IANS
India is likely to sign the US' Intergovernmental Agreement (IGA) for Foreign Account Tax Compliance Act (FATCA) early next month, a senior official has said. FATCA requires all financial institutions outside of the US to periodically transmit information on financial accounts held by Americans to the US Internal Revenue Service, or face a 30 percent withholding tax on payments made from the US. "The Indian government is likely to sign the Intergovernmental Agreement for Foreign Account Tax Compliance Act in early July 2015," Joint Secretary, Finance, Akhilesh Ranja said at a roundtable here organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) said in a statement on Friday. Source: IANS
Finance Minister Arun Jaitley has assured foreign investors on their concerns about the speed of India's reforms process, as well as about an adversarial tax regime. "Concerns that the process of reforms must expedite, which we are trying to do. Concern at the stability of policy, which has been assured because the government's movement is in one direction," Jaitley told reporters here on Wednesday after a visit to the New York Stock Exchange. "Investors are certainly looking forward at India in order to make large amount of investments in India," he said. Source: IANS
The Central Board of Direct Taxes (CBDT) on Monday dismissed reports that it has asked its officers to go beyond raids and searches to target tax evaders and said stringent action in big cases of evasion would demonstrate to compliant taxpayers that laws are just and fair. "CBDT clarifies that this is factually not correct. It may be appreciated that the need of the hour is to provide effective deterrence since the soft action in extreme and big cases of tax evasion affects the behaviour of the compliant tax payers," said a finance ministry statement in New Delhi. "This has been brought out in the latest study conducted by the NIPFP (National Institute of Public Finance and Policy)," it added. Source: IANS
About Indian Taxation System
Income Tax Slab 2015-16Individual resident aged below 60 years (i.e. born on or after 1st April 1955) or any NRI/ HUF/ AOP/ BOI/ AJP*
|Sno.||Income Slabs||Tax Rates|
|i.||Where the taxable income does not exceed Rs. 2,50,000/-.||NIL|
|ii.||Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.||10% of amount by which the taxable income exceeds Rs. 2,50,000/-. Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.|
|iii.||Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.||Rs. 25,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.|
|iv.||Where the taxable income exceeds Rs. 10,00,000/-.||Rs. 125,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.|
Surcharge:10% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess: 3% of the total of Income Tax and Surcharge.
* Abbreviations used:NRI - Non Resident Individual; HUF - Hindu Undivided Family; AOP - Association of Persons; BOI - Body of Individuals; AJP - Artificial Judicial Person
For the individuals, who are residents of India and of the age of sixty years or more but less than eighty years at any time during the previous year,-
|S.NO.||Income Slabs||Tax Rates|
|i.||Where the total income does not exceed Rs. 3,00,000/-.||NIL|
|ii.||Where the total income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-||10% of the amount by which the total income exceeds Rs. 3,00,000/|
|iii.||Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-||Rs. 20,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.|
|iv.||Where the total income exceeds Rs. 10,00,000/-||Rs. 120,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.|
For the individuals, who are residents of India and of the age of eighty years or more at anytime during the previous year,-
|S.NO.||Income Slabs||Tax Rates|
|i.||Where the total income does not exceed Rs. 5,00,000/-.||NIL|
|ii.||Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-||20% of the amount by which the total income exceeds Rs. 5,00,000/-.|
|iii.||Where the total income exceeds Rs. 10,00,000/-||Rs. 100,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.|
Types of Tax in IndiaThere are different kinds of taxes, which are prevalent in the nation. The computation of those taxes varies from one tax to another, depending on the nature of a particular tax. Following are some of the major taxes in India:
Capital Gains TaxPayable on the capital gains that are received after the asset sales, this tax is a direct tax levied by the Central Government of India.
Corporate TaxLevied by the India Government, this type of direct tax involves the payment of tax by the companies based within the Indian Republic on their worldwide income.
Service TaxThis tax is computed on some specific services, which are provided in the country. The tax is levied at 10 % rate with an additional education cess at the rate of 2 %.
Custom DutyGoverned as per the Customs Act, 1962 as well as the Customs Tariff Act, 1975, the imported goods in this nation attract basic and additional custom duty.
Excise DutyAccording to 1944's Central Excise Act and 1985's Central Excise Tariff Act, this duty is levied on the manufacturing of goods.
Personal Income TaxThis tax in the Indian Republic includes every kind of income, which is computed and levied by the Union Government. The income from agriculture is not levied or collected by the India Government though.
Value Added TaxValue Added Tax or V. A. T. has been implemented in most of the states in place of the Sales Tax from 1st April, 2005. Such a tax is levied while selling movable goods.
Wealth TaxApplicable on all the Indian citizens, this tax is levied as per the Wealth Tax Act, 1957.
Apart from the ones mentioned above, there are many other taxes, names of some of which are as follows. Among them, some taxes are even solely levied by the State Governments or Local Bodies:
- Asset Transfer Tax or Stamp Duty
- Building Tax or Property Tax
- Dividend Tax
- Entry Tax or Octroi Tax
- Fringe Benefit Tax
- Fuel Tax
- Poll Tax
Last Updated on 6/20/2015
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