International Monetary Fund chief Christine Lagarde called today for financial "transparency" among multinational companies to counter tax avoidance schemes in which less-developed countries suffer the most.
Government's proposal to cut corporate tax to 25 per cent over three years is likely to bring in transparency in tax collections, India Ratings and Research said today.
Currently, individuals are taxed at slab rates depending upon the level of income but the tax rates are very complex as they comprise of not only the basic rate (10% or 20% or 30%) but also tax levied on account of levy of ed
Arun Jaitley in his last Budget had announced phased reduction in corporate taxes over four years to 25 per cent from present 30 per cent, and also simultaneous withdrawal of exemptions.
The commerce ministry has renewed its demand that developers of special economic zones (SEZs), as well as the
units in these enclaves, be given exemption from minimum alternate tax (MAT) and dividend distribution tax (DDT).
In a bid to give stakeholders sufficient time to study the plan, the Finance Ministry has extended the deadline to give comments on the roadmap for corporate tax exemption by over three weeks till December 31.
India has unveiled details of its plan to phase out some tax exemptions for companies as the government looks to simplify tax laws and make them transparent before it lowers the tax rate.
Government may not extend sunset clauses with regard to tax exemption and phase out investment- linked and area based deductions as part of exercise to reduce corporate tax to 25 per cent from 30 per cent over the next four y
Finance minister Arun Jaitley may start with just token measures to phase out corporate tax exemptions in the Budget for FY17 but may nevertheless drop the corporate tax rate by one percentage point.
Finance Minister Arun Jaitley today reiterated the government's commitment to bring in a "reasonable and globally-competitive tax regime" through reduction in corporate tax rate to 25 per cent over the next four years.
