Business Taxation
Buisness Taxation advocate in India:
If you’re seeking assistance with business taxation in India, there
are several reputable firms and professionals you can consider:
1. Tax Advocate India:
- Services: Income tax, business taxation, tax litigation, tax
consultancy, firm registration, and accounting services.
- Location: 9-B, Diwan Estate, Dwarka Mor Metro Station, New
Delhi, 110059.
- Contact: [098100 77152](tel:+919810077152)
- Website: [Tax Advocate
India](https://www.taxadvocateindia.com/)
2. Ashok Jangra & Associates, Advocates Income Tax &
GST:
- Services: Income Tax, GST, ESI, PF, Trade Mark Registration,
ISO Certificate, FSSAI Registration, and more.
- Location: SCO 7 M R Complex, Ground Floor, Delhi Road, Near
Bullet Agency, Near Dainik Jagran Office, Rohtak, Haryana
124001.
- Contact: [098133 82618](tel:+919813382618)
- Website: [Ashok Jangra &
Associates](https://ashokjangratax.in/)
The Finance Bill, 2018 introduced several provisions
related to direct taxes in India. Let’s delve into the key aspects:
1. Rates of Income Tax:
- The bill aimed to continue the momentum in direct taxes by
deepening and widening the tax base.
- Corporate tax rates were reduced for micro, small, and
medium enterprises.
- Measures were taken to promote horizontal equity in personal
income tax.
- Enhancements were made to the effectiveness, transparency,
and accountability of tax administration.
2. Surcharge on Income Tax:
- Individuals, HUFs, associations, and artificial juridical persons
faced surcharges based on income levels.
- Domestic companies with total income exceeding one crore
rupees also incurred surcharges.
3. Other Aspects: - The bill covered various areas, including
tax incentives, insolvency resolution, and rationalization
measures.
Long-Term Capital Gains (LTCG) tax in
the Finance Bill, 2018 had significant implications for
investors in India. Here are the key impacts:
1. Tax on Equity Investments:
- Previously, long-term gains from equity investments (held for
more than one year) were exempt from tax.
- With the LTCG tax, a 10% tax was levied on gains exceeding ₹1
lakh from the sale of listed equity shares or equity-oriented
mutual funds.
- Investors needed to calculate and pay this tax while filing their
income tax returns.
2. Reduced Post-Tax Returns:
- The tax reduced the effective returns on equity investments.
- Investors had to consider this tax liability when evaluating
investment decisions.
- It impacted the attractiveness of equities compared to other
investment avenues.
3. Behavioral Impact:
- Some investors adjusted their investment strategies due to the
tax.
- There was increased focus on tax-efficient investment options.
- Investors explored alternatives like debt funds or fixed
deposits.
4. Market Volatility:
- The announcement of the LTCG tax led to short-term market
volatility.
- Investors reacted to the change, resulting in fluctuations in
stock prices.
•In India, there are several taxes related to investments. Here are
some key points:
1. Capital Gains Tax:
- Equity Investments**: Gains from the sale of listed equity
shares or equity-oriented mutual funds are subject to capital
gains tax.
- Debt Investments: Long-term capital gains (held for more
than three years) on debt instruments are taxed at 20% with
indexation benefits. Short-term gains are added to the individual’s
income and taxed as per their slab rate.
2. Securities Transaction Tax (STT):
- STT is levied on the purchase and sale of securities (including
equity shares, derivatives, and equity-oriented mutual funds).
- It is collected by stock exchanges and helps fund market
regulation.
3. Dividend Distribution Tax (DDT):
- Companies distributing dividends pay DDT before distributing
dividends to shareholders.
- Individual shareholders do not need to pay additional tax on
dividends received.