INVESTMENT BUDGET
The forth coming budget should be an 'Investment Budget' so as to enable India to deal with the global economic crisis and to plan for the revival of the economy.
To boost availability of long term finance for industrial, agriculture or infrastructural facility, it is suggested that reinstatement of special reserve benefit under section 36(1) (viii) of the Income tax Act in respect of profits arising out of business of providing long term finance to all specified entitles .
It is suggested that alignment of the domestic tax system with the financial industry's business requirements and removal of tax barriers for the country's development process. The roll out road plan for GST by 2010 to be made specific since this the last budget before the roll out. Tax liability of LLPs and its partners may also be specified to avoid ambiguity.
Similarly wrt to section 72A private banks to be placed at par with nationalized banks, regarding amalgamation. This will allow the merging private banks to carry forward and set off unabsorbed losses and accumulated depreciation.
Consolidation of accounts of Financial Holding Company and its subsidiaries for tax purposes. To avoid double taxation and revenue leakage, tax credit my be allowed in the hands of FHCs for the corporate dividend tax already paid by the subsidiaries.
Standard deduction for salaried employees may be introduced to reduce the burden of tax liability, tax net to be widen by bringing more assessees under section 44AF.
PROFILE:
P.Vijay kumar aged 43 years is a practising CA in Calicut for the last 19 years. Is the past Chairman of the Calicut Branch of Chartered accountants. Is also associated with various trade and other professional organisations. Photo attached.
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