The Tax Stimulus ; the Commitment to Introduce the New Direct Tax Code Signifies the Government's Vision to Keep Tax Laws Simple and Promote Tax Certainty and Improve the Quality of Tax Compliances.
Summary
It is becoming increasingly clear that tax policy will pay a pivotal role in resuscitating the global economy, as we see governments across the world unveil streams of tax reforms to revive economic sentiment, stoke capital investments and aid job creation. Budget 2009 was presented against this backdrop.
The government acceded to the request of the export sector, and tax holiday benefits under Sections 10A and 10B of the Income Tax Act, 1961, which were set to expire on March 31, 2010, have been extended by a year. The Budget also seeks to amend and broaden the tax base on which units located in a Special Economic Zone (SEZ) are entitled to claim income tax holiday benefits. The much-awaited amendment to Section 10AA(7) of the Income Tax Act logically provides that profits of a SEZ unit are to be computed with respect to the proportion of its export as well as total turnover. This amendment would put STP and SEZ units at par with respect to the computation of exempt profits.See the full content of this document
Extract
The Tax Stimulus ; the Commitment to Introduce the New Direct Tax Code Signifies the Government's Vision to Keep Tax Laws Simple and Promote Tax Certainty and Improve the Quality of Tax Compliances.
The Budget also seeks to spur research & development (R & D) activity in India. Section 35(2AB) of the Income Tax Act provides a weighted deduction ...
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