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Tax Reform Act

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Nehru

Posted: May 25 2007, 11:37 AM

Noted MP

Group: Administrator
Posts: 261
Member No.: 19
Joined: 11-February 07

QUOTE

Tax (Reform) Act

An Act to introduce direct taxation reforms

BE it enacted by Parliament of the Republic of India as follows:

Section 1: Direct Taxation

1. Banking Cash Transaction (Tax) Act, 2005 shall be repealed.

2. Inheritances Tax and the Wealth Tax shall be combined to create a single Inheritance and Wealth Tax on:
i. Unproductive Assets above Rs.10 million as defined by the Wealth Tax Act.
ii. Inheritances above Rs.10 million.

3. Income from Dividends, Interest Income and Income from Capital Gains shall be taxable at a single rate as Capital Income Tax.

Section 2: Corporation Tax

1. Accelerated Depreciation shall be abolished. Depreciation shall be allowed at the actual rate of depreciation of capital goods.

2. Corporation Tax shall be levied in three slabs:
i. A Lower Band of Corporation Tax for corporate income within Rs.1 million.
ii. A Normal Rate of Corporation Tax for corporate income between Rs.1 million and Rs.100 million.
iii. Top Rate of Corporation Tax for the following categories:
a. Corporate income above Rs.100 million.
b. The total income of foreign corporations not incorporated in India in which majority ownership is not with Indian nationals.

Section 3: Enactment

1. This act shall come into effect on 1st April, 2008.

2. The rates of taxation shall be set in the Finance Act.

Sir Tyler Singh	Posted: May 25 2007, 11:43 AM
Noted MP Group: Indian National Congress Posts: 226 Member No.: 35 Joined: 4-May 07	Aye -------------------- Rt.Hon.Sir Tyler Manmohan Singh MP Prime Minister of India Minister for Education and Health Minister for the Home Department Member of Indian National Congress Member of Parliament for Assam

Rakesh Patel	Posted: May 25 2007, 04:18 PM
Candidate MP Group: Indian National Congress Posts: 43 Member No.: 38 Joined: 20-May 07	Aye

Martijn van Nijnanten	Posted: May 28 2007, 01:38 AM
Mohandas Prakharti, MP Group: Indian National Congress Posts: 135 Member No.: 31 Joined: 3-April 07	Aye -------------------- The Right Honourable Mohandas Prakharti, MP *Deputy Prime Minister of India* Minister of External Affairs and Defence Chief Whip and Vice-President of the Indian National Congress Indian National Congress

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