Individual Benefit on Taxation Old v/s New Regime
Written by gkkedia Dt. February 14th, 2020
Income-tax Act, 1961 was brought to tax the income of individuals, Firms, Companies and Association of Person. But in due course of time, corruption entered in the actual practice of the Income-tax Act. Income tax Act was made vehicle to implement other Acts and Social Objectives. Assessee started claiming wrong benefits and further Income-tax Department started giving wrong benefits in lieu of bribes. As a result, effective tax recovered by Government was around 17- 20% instead of 30%. Therefore, the Government gave an option to companies to give Income-tax @ 15% or 22% in September 2019.
On the same fashion, in this Budget 2020, Government gave an option to Individuals to opt either exemption and deductions free taxation system or otherwise, whichever is more beneficial to them.
In our opinion, the new regime of taxation is more beneficial to Individuals and to government too.
Individuals will have more liquidity in their hand in the new regime of taxation and corruption and bribery will be eliminated.
We fully support the new regime of taxation.
We at G. K. Kedia & Co. can assist with Consultancy in Income Tax matters & Tax Planning, Preparation of Income Tax Return, Assessment of Tax Returns, International taxation consultancy, Transfer Pricing matters-TP Study, TP Audit, TP Assessment & Objections with DRP, Income tax Appeals before Commissioner of Income Tax (Appeals), Appearance before Central Board of Direct Taxes (CBDT) and before Ministry of Finance, Appearance before Investigation Wing of Income Tax Department, Income tax Appeals before Income Tax Appellate Tribunal (ITAT), TDS & Withholding tax compliance