Taxation in India

Distribution of Tax Revenues: Constitutional Provisions

September 19, 2016

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 amended as per recommendations of finance commission...

Draft Place of Effective Management (PoEM) Rules

February 15, 2016

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 During a particular financial year, the control...

Swachh Bharat Cess

December 25, 2015

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 tax rate 14.05% against the current 14%....

Tax Information Network

November 23, 2015

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 and accounting of direct taxes using information...

Gender Budgeting in India

November 23, 2015

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 what the impact of the spending is...

Merits and Demerits of Progressive Taxation

November 22, 2015

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, progressive taxes are seen as fighting inequalities...

Timeline of Taxation in India

November 21, 2015

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 operational duties for the operation of the...

Indirect Taxes in India

November 19, 2015

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 is a lot of change in the...

Appropriation Act and Finance Act

November 19, 2015

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 to the taxation proposals in the beginning...

Taxation Powers of Union and States in India

November 19, 2015

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 of the constitution. Further, limited financial powers...

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