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Direct Tax Code
- 1. LOOP HOLES INTAXES DTC (DIRECT TAX CODE)
- 2. MEANING :- LOOPHOLES Ambiguity in a system Which can be used to avoid procedure of system
- 3. DEFINITION Exploitation ofa tax law which can reduce or eliminate tax Legal, taxation strategies that are exploited for personal gain.
- 4. HOW IT WORKS Local development law that requires An unoccupied building to pay real estate taxes so long as it receives a certificate of completion Builder :- choose not to "complete" the building.
- 5. SOME WAYS TOAVOID TAX Contributing to charity Deferred Income Do a Bond Swap Tax break
- 6. WHY IT MATTERS???? Exploiting loopholes may lead to intensive scrutiny and audits Reducing our facilities
- 7. DIRECT TAX CODE Direct Tax Code is a combination of major tax relief and removal of most tax- exempted benefits a document containing changes in Exemptions, Tax slab
- 8. CONTD….. New tax slab INCOME SCOPE TAX PERCENTAGE LESS THAN 1.6 LACS 0% 1.6 – 10 LACS 10% 10 – 25 LACS 20% 25+ Lacs 30%
- 9. FEATURES Only half ofShort-term capital Surcharge and education gains will be taxed cess are abolished. Tax on dividends 5 % Exemption on Education loan On LTA (Leave travel allowance) is abolished
- 10. ADVANTAGES Whole process much Generate more tax simpler revenue reduces the corporate tax a new face to the to 25% from the current Indian economy 34%
Editor's Notes
- #3 loophole is an ambiguity in a system, such as a law or security, which can be used to circumvent or otherwise avoid the intent, implied or explicitly stated, of the system. Loopholes are searched for and used strategically in a variety of circumstances, including taxes, elections, politics, the criminal justice system, or in breaches of security.
- #6 let's say John and his wife had a baby in 2011. When John files his tax return for the year 2011, he will qualify for a $1,000 child tax credit, which lowers his tax bill by $1,000. In other words, John and his wife get a tax break for having a baby tax break for small businesses who invest in "heavy vehicles". The tax break applies if the vehicle is used at least 50% of the time for the business. Business owners may exploit this loophole by upgrading their own vehicles to SUVs, which are considered "heavy" under the tax law, and thereby gain a personal financial advantage.