Budget bowls a googly to tax cases The Budget proposal to empower income tax assessing officers to take action against defaulters without having to give reasons can stir a hornet’s nest. At present, these officers have to give definite reasons before taking action and officially record their ‘satisfaction’ that a case, indeed, merits penalties. But Budget 2008-09 has proposed that they need to give only a direction for initiating penalty proceedings.

Chidambaram takes tax deducted at source route for better compliance Finance minister P Chidambaram in Budget 2008-09 has introduced a number of measures to increase tax compliance through tax deducted at source (TDS) and administrative measures.

Tax, duty sops to cost government over Rs 3.5 lakh crore The estimated revenue forgone due to customs duty exemptions in 2007-08 is Rs 1,48,252 crore, an 8% increase over the previous year’s estimated figure of Rs 1,37,105 crore.

FM’s tax opera goes on, critics keep silent this time Finance minister P Chidambaram’s tax opera seems to have come a full circle. His decision to levy a tax on transactions in commodity exchanges in Budget 2008-09 has surprisingly not found much opposition.

Securities transaction tax to help boost govt’s earnings Despite the sluggishness in manufacturing and a lower growth projection, along with additional spending due to projected rise in food and oil prices, the government hopes to earn Rs 6,02,935 crore though tax and non tax revenues, a 14.8% rise in its earnings.

Nothing this time, STPI waits for next Budget Announcing tax holidays for hotels and hospitals in specified areas, Budget 2008-09 has remained silent on the issue of continuing the tax holidays for Software Technology Parks of India scheme and Export Oriented Units.

More in the pocket, but more could have been done The Budget proposals of the finance minister are likely to result in more money in the pocket at the end of the day, especially for the aam admi.

The STT amendment impact The Union Budget 2008-2009 presented by the finance minister P Chidambaram proposes to make some radical changes to the tax treatment of securities transaction tax for the financial year 2008-2009.

‘Only a small segment will be impacted by STCG’ Budget 2008-09 was a fine act of balance; the buoyant Indian economy growing at over 8.5% provided the finance minister the required flexibility to significantly step up allocation to the social sector, while maintaining the investment and consumption expenditure-driven growth thrust.

‘Removal of TDS on listed bonds is positive’ This Budget, when seen in the backdrop of the forthcoming elections, is a well-balanced budget, where the FM has restrained himself from an all-out populist budget but has also managed to focus on key pain areas as well as potential areas of growth.