Thursday, March 17, 2016

How the Presumptive Scheme Taxes More Than the Actual Profits

Finance Bill 2016 has introduced section 44ADA to extend presumptive tax scheme to professionals. Opinions remain divided on whether 50% is too high a rate. Another implication of it has stumped partnership firms, where taxable profits end up more than the actual profits!

Tuesday, March 15, 2016

Budget 2016 Rationalizes Presumptive Tax Provisions

One of of the key challenges faced by the Government today is increasing the ease of doing business in India that will provide impetus to self-employment and instill confidence among the investor community. Presumptive taxation is one such provision in the Income Tax Act. If you are a startup, micro or small enterprise you might want to consider it.

Friday, March 4, 2016

Did Budget 2016 Snub Indian Taxpayers?

Budget 2016 has left behind a trail of disgruntled taxpayers with some strong pressure for rollback, particularly in case of EPF taxation. The measure in itself may not be "anti-people", but the lack of clarity in budget speech definitely led to some misinterpretation and the Government had to clarify. Read details about why taxpayers are unhappy about certain proposals and what is the Government's rationale behind them. 

Our pre-budget poll revealed a clear inclination towards change in tax slabs and increase in the exemption limit u/s 80C. However, none found way to the Finance Bill 2016.