Taxation in India

September 19, 2016

Distribution of Tax Revenues: Constitutional Provisions

Article 268 to 281 in the constitution of India deal with the distribution of tax revenues. These articles have been amended from time to time, for example 88th amendment provided for service tax via article 268-A. Some articles have been…

February 15, 2016

Draft Place of Effective Management (PoEM) Rules

Residential status of the companies is an important factor in deciding their tax liabilities. The income tax act provides that a company is resident in India if it fulfils either of the following two conditions: It is an Indian company…

December 25, 2015

Swachh Bharat Cess

The thrust of new Government towards clean India has recently made the government to impose Swachh Bharat Cess of 0.5% on all services liable for service tax. The Swachh Bharat cess will be an additional levy, making the effective service…

November 23, 2015

Tax Information Network

On behalf of the Income Tax Department, the National Securities Depository Limited (NSDL) established Tax Information Network (TIN). This is a source of the countrywide tax related data.  The basic idea behind establishing TIN was to modernise collection, processing, monitoring…

November 23, 2015

Gender Budgeting in India

A gender budget is not a separate budget for women. Instead, the gender budgets are an attempt to assess government priorities as they are reflected through the budget and examine how they impact women and men. Gender budgets look at…

November 22, 2015

Merits and Demerits of Progressive Taxation

A progressive tax is imposed to raise the tax rate effectively more than the rate at which it was applied. It is characterised by a more than proportional rise in the tax burden relative to the increase in income. Thus,…

November 21, 2015

Timeline of Taxation in India

1922: The Income Tax Department was established in the year 1922. The Income Tax Act, 1922 gave a particular classification to different income tax authorities. 1924: The Central Board of Revenue Act established the Board as a legislative body with…

November 19, 2015

Indirect Taxes in India

Indirect taxes include service tax, sales tax, custom, excise duties, VAT, MODVAT, CENVAT, proposed Goods & Services Act etc. Initially the indirect tax regime was too complicated and there was an ubiquitous problem of tax on tax. Post liberalization, there…

November 19, 2015

Appropriation Act and Finance Act

An Appropriation Act in India is an act of Parliament which allows the withdrawal of funds from Consolidated Fund of India or Consolidated Funds of States (in case of state budgets). Similarly, the Finance Act of Central Government gives effect…

November 19, 2015

Taxation Powers of Union and States in India

Indian constitution has divided the taxing powers as well as the spending powers (and responsibilities) between the Union and the state governments. The subjects on which Union or State or both can levy taxes are defined in the 7th schedule…