ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

K C SharmaSubscribe to K C Sharma

Dividend Taxation and Harmonisation of Depreciation Rates-Some Policy Suggestions

This paper examines the vital issue of inherent inequity in the new dividend tax policy enunciated in the Central Budget, 1997-98. This raises the question of distributive justice and also whether such a tax system conforms to the preamble of our Constitution which professes social and economic justice. The paper, therefore, suggests that while the new dividend tax system may be retained, it should be combined with the levy of TDS at modest rates on the shareholders

Corporate Tax Policy Issues and Options

K C Sharma This paper examines the need for and revenue potential of the Minimum Alternative Tax (MAT) levied on the book profit of companies against the Alternative Minimum Tax (AMT) which is leviable on their total assets as suggested by the World Bank and argues for the enforcement of either of these two measures. It further makes out a case for reduction in corporate tax rates coupled with reduction in fiscal incentives which are prone to misutilisation. It also suggests a reduction in the depreciation rates admissible under the Income Tax Act for bringing about their harmonisation with the corresponding rates admissible under the Companies Act, which would also neutralise the loss of revenue from abolition of MAT if it is so decided in the next budget.

Corporate Tax Revenue in 1990-91-Some Methodological Issues

Better tax compliance was expected as a consequence of the abolition of Investment Allowance/Investment Deposit Account together with other changes in the tax structure. This article examines the extent of additional resource mobilisation possible using four different methods of computation, viz, estimated new investment in plant and machinery, estimated investment allowance provision, likely increase in effective tax rates and weighted average of effective tax rates of private and government companies. It concludes that additional revenue of the order envisaged is feasible if the leakages in the corporate tax system are plugged.

All-India Co-ordinated Fertiliser Experiments on Wheat

 productivity is underestimated to that extent. Finally, this study indicates that at toast a portion of the sugar industry has a highly modernised sector, where efficient methods of production are employed. Thus changes in the techniques of production are the major determinants of productivity movements in the sugar industry.
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