Government Calls for Comments on Proposed Plan of Phasing-Out Exemptions and Deductions under the Income-Tax Act in Order to Bring Down Rate of Corporate Tax from 30% to 25%
The Union Finance Minister Shri Arun Jaitley in his Budget Speech 2015 had indicated that the rate of Corporate Tax will be reduced from 30% to 25% over the next four years along with corresponding phasing-out of exemptions and deductions. This is a step towards simplification of tax laws, which is expected to bring about transparency and clarity.
The Government proposes to implement this decision in the following manner:
· Profit linked, investment linked and area based deductions will be phased out for both corporate and non-corporate tax payers.
· The provisions having a sunset date will not be modified to advance the sunset date. Similarly the sunset dates provided in the Act will not be extended.
· In case of tax incentives with no terminal date, a sunset date of 31.3.2017 will be provided either for commencement of the activity or for claim of benefit depending upon the structure of the relevant provisions of the Act.
· There will be no weighted deduction with effect from 01. 04.2017.
The details of proposed phasing-out of deductions are available on the website of the Income Tax Department atwww.incometaxindia.gov.in.
Comments on this proposal may be sent within 15 days to Director (TPL-III) on mail at firstname.lastname@example.org or by post at Director (TPL III), Central Board of Direct Taxes, Room No. 147G, North Block, New Delhi- 110001.Tags : Income Tax