Mukesh Patel.in
practical tax & investment planning online
international tax expert / columnist / author / speaker

FM’s BUDGET ON A ROCK & ROLL!

One year deferment of GAAR, equity savings scheme & some TCS concession likely to be announced in Finance Bill today!

              Taxpayers are bound to keenly watch the Lok Sabha proceedings today, as the FM rises to move some amendments in the Finance Bill, 2012, which is slotted for discussion and approval of the House on May 7 & 8.

ANY ROLLBACK ON GAAR?

              Will there be any rollback on the highly controversial and hotly debated GAAR is the big question doing the rounds. One thing is sure and that is, the FM has indeed realized the serious implications of GAAR as proposed. Even the Parliament’s Standing Committee on Finance, in its report on the Direct Taxes Code (DTC) has seriously urged the Finance Ministry to deal with a whole package of its recommendations on GAAR. Whereas the FM is unlikely to announce any blanket withdrawal, it is very likely that he may announce atleast a one year deferment in the implementation of GAAR, so that many grave concerns and several important aspects in this regard can be examined. It is also expected that the highly iniquitous provision in relation to the burden of proof placed on the taxpayer may be knocked off and the constitution of the Approving Panel for GAAR may be designed in a more objective manner, with a view to dispel the critical reservations regarding the fairness of its implementation. (more…)

CALL FOR CRUSADE AGAINST GAAR!

Even as Parliamentary Panel frowns on the notorious DTC provisions, Budget gives it a mischievous back-door entry!

             While presenting his Budget 2012, the Union Finance Minister referred to the ‘Report on the Direct Taxes Code (DTC) Proposals’ received from the Parliament’s Standing Committee on Finance and observed that, “we will examine the Report expeditiously and take steps for the enactment of DTC at the earliest.”

             However, it has come as a huge shock that grossly ignoring the critical concerns of the Committee in regard to the ‘General Anti Avoidance Rules’ (GAAR) and its strong recommendations for thoroughly amending GAAR, the original GAAR proposals as packaged in the DTC Bill have been most mischievously given a back-door entry in the Income-tax Act through clause 40 of the Finance Bill, 2012. (more…)

Looking at London, Talking to Tokyo!

The Code boasts of incorporating simplicity, well accepted principles  & best international practices.’

Does it achieve or deceive on this count?

(more…)

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