30 04, 2012

Only 406K Taxpayers Earn Over 20 Lakhs: DTC Report

By |April 30th, 2012|Categories: ChartOfTheDay, DirectTaxCode, IncomeTax|4 Comments

According to the Parliamentary Committee Report on the Direct Tax Code (DTC) headed by Yashwant Sinha, the total number of individual taxpayers (2010-11) that earned more than Rs. 20 lakhs (Rs. 2 million, or $40,000) a year were just 406,000. That is our 1%, as the total taxpayer base is around 3.25 cr. (32.5 million).


26 12, 2011

Direct Tax Code May Be Deferred, Again

By |December 26th, 2011|Categories: Commentary, DirectTaxCode|Comments Off on Direct Tax Code May Be Deferred, Again

The government may defer the Direct Tax Code by a year, even though Pranab Mukherjee mentioned as recently as Dec 7 that he would bring it in force from April 2012.

Dhirendra Kumar at Value Research expresses his concern about the delay – the second such one if the news is true – saying it causes unnecessary uncertainty for the regular classes:


2 09, 2010

No Dividend Distribution Tax for Debt Funds?

By |September 2nd, 2010|Categories: DirectTaxCode, MutualFunds|8 Comments

The Direct Tax Code has no DDT for debt or non-equity funds. Currently, for liquid funds, dividends are taxed at 25% plus the surcharge and cess, which adds up to nearly 28.5%. (Which I argue is still better than a fixed deposit)

So what’s the catch? Dividends will be taxed for non-equity funds, as if they are your income. […]

30 08, 2010

India Direct Tax Code Bill Tabled in Lok Sabha

By |August 30th, 2010|Categories: DirectTaxCode, IncomeTax|18 Comments

The Government introduced the Direct Tax Code Bill today. After some serious amount of searching, I found the bill online, after struggling with pages timing out, debugging communication messages and guessing IP addresses. (Read: It was darn easy in the end, but I had spent so much time I needed to make it look like it was a bloody difficult job).

What matters […]

21 07, 2010

Reader Comments: Cannot Offset Long-term Capital Losses

By |July 21st, 2010|Categories: DirectTaxCode|7 Comments

Thanks very much for all your comments on the earlier post about the Direct Tax Code keeping equity gains tax free till Mar 2011. I’d then asked if losses would be grandfathered – i.e. should we book them before and carry them over. Reader Sirka Pyaaz says:

If you held a share for more than one year and sell it in the open market, the capital gains are exempt. […]

19 07, 2010

Direct Tax Code Will Keep Equity Gains Tax-Free till April 1, 2011

By |July 19th, 2010|Categories: DirectTaxCode|11 Comments

NDTV says there’s a good thing in the new Direct Tax Code: (HT: Samarth Modi)

Equity investors should remain invested despite the new direct tax code proposing the return of the long term capital gains tax. At least that’s what the government wants investors to believe, finance ministry officials have told NDTV.

Investors holding long term shares till March 31, 2011, will not be subjected to the long-term capital gains […]

3 03, 2010

Direct Tax Code: Book Profits and Buy Back?

By |March 3rd, 2010|Categories: DirectTaxCode, IncomeTax, Stocks, TaxSaving|11 Comments

With the Budget revealing that the Direct Tax Code will be implemented from April 2011, a few choices have to be made now. The DTC brings in capital gains tax back again – even long term capital gains, which don’t get “preferential” treatment as they have in the last few years. Long term capital gains – where the purchase is over a year ago – is currently NOT taxed, and […]