tax

TAX TREATMENT OF THE SPECIAL PURPOSE VEHICLE: Taxation of the SPV is one of the most crucial tax issues in a securitization transaction. The ultimate cost of a securitization transaction would be increased if the SPV taxation leads to a double taxation of originator income. Therefore...

TAX TREATMENT IN THE ORIGINATORS’ HANDS: Tax laws may, either on basis of specific rules or general precedents, accept the securitization as either a sale of the receivables, or may disregard the sale and proceed to tax it as a financing on the security of the receivables. SALE TRATMENT...

TAX ISSUES IN SECURITIZATION The basic objective of an ideal tax regime for securitization should be based on the nature of the securitization vehicle. If the vehicle is merely a passive conduit between the investors and the originator, the conduit should be taxed neutral or tax transparent...

Securities Transaction Tax Transactions in equity shares, derivatives and units of equity-oriented funds entered in a recognized stock exchange attract Securities Transaction Tax at the following rate:- • Delivery base transactions in equity shares or buyer and seller each units of an...

Tax Incentives Government of India provides tax incentives for:- • Corporate profit • Accelerated depreciation allowance • Deductibility of certain expenses subject to certain conditions. These tax incentives are, subject to specified conditions, available for new investment in •...

Rates of Withholding Tax Current rates for withholding tax for payment to non-residents are: (i) Interest 20% (ii) Dividends Dividends paid by domestic companies: Nil (iii) Royalties 10% (iv) Technical Services 10% (v) Any other services Individuals: 30% of the income Companies: 40% of...

Personal Income tax Personal income tax is levied by Central Government and is administered by Central Board of Direct taxes under Ministry of Finance in accordance with the provisions of the Income Tax Act. The rates for personal income tax are as follows:- Income range (Rupee) Tax Rate (%)...

Capital Gains Tax Tax is payable on capital gains on sale of assets. Long-term Capital Gains Tax is charged if • Capital assets are held for more than three years and • In case of shares, securities listed on a recognized stock exchange in India, units of specified mutual funds, the...

HOW IS SERVICE TAX CALCULATED? This is a tax recognized by the Relevant Tax Authority Charged on services rendered to any given customer. Calculation:- Value of service or goods xxx Add % of Value of service x Total value of service...

Salient Features Service Tax is essentially an indirect tax. Individuals are required to pay the Service Tax only once in a quarter. Companies can pay Service Tax for one month by the 25th of the following month. The Finance Act of 2001 launched self-assessment for Service Tax returns so...

Tax Amount The government charges Service Tax in India on the gross amount which the service providers charge from their clients. By bringing more and more services within the scope of Service Tax, the government intends to enhance its revenue earnings manifold. The Service Tax amount...

Service Tax is a form of indirect tax imposed on specified services called "taxable services". Service tax cannot be levied on any service which is not included in the list of taxable services. Over the past few years, service tax been expanded to cover new services. The objective behind...

Tax planning can be done on the basis of showing investments in the balance sheet in order to evade paying high tax. Many Salaried employees don’t know how to evade tax? This problem arises when the individual dint have the idea of benefits arising out of long term investments. The following are...

INDIA TAX PLANNING SCENARIO Aggressive tax planning that takes advantage of an unintended legal or administrative loophole. Examples include captive insurance companies, investment companies, some service and construction businesses being conducted through tax haven entities, and pricing of...

GLOBAL TAX PLANNING SCENARIO We have tax codes throughout the world to thank for the development of the offshore financial world. Without their assistance, the Cayman Islands would probably be a set of desert islands and no one would ever have heard of Vanuatu. One of the main purposes of this...

Income Tax Exemptions For Salaried People In India All income received as salary under Employer-Employee relationship is taxed under this head. Employers must withhold tax compulsorily, if income exceeds minimum exemption limit, as Tax Deducted at Source (TDS), and provide their employees with...

Tax Planning Instruments Available in India • Public Provident Fund (PPF) Accounts: • The deposits in PPF accounts are eligible for relief under section 80C of the Income Tax Act. • The interest earned on deposits in PPF accounts is fully exempted from income tax. • The interest and...

For Males Taxable Annual Income Slab (In Rs.) Tax Rate (In %) Upto Rs. 1,50,000/- Nil Rs. 1,50,001/- to Rs. 3,00,000/- 10% Rs. 3,00,001/- to Rs. 5,00,000 20% Above Rs. 5,00,000/- 30% For Females Taxable Annual Income Slab (In Rs.) Tax Rate (In %) Upto Rs. 1,80,000/- Nil Rs. 1,80,001/- to...

Reasons behind Tax Planning done by salaried employees are as follows: 1. Utilize the entire Section 80C deduction Under Section 80C, the maximum deduction available is Rs 100,000 pa. Ideally, salaried individuals whose gross total income is equal to or more than Rs 250,000 should utilise...

With the tax-planning season about to end, most individuals are rushing around to make investments to minimise their tax liability. It has been observed that individuals (often salaried ones) end up paying more taxes than they are obligated to. While lack of sufficient time to conduct the...