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

N J JhaveriSubscribe to N J Jhaveri

Agenda for Tax Base Reform-Further Comment

January 22, 1972 Agenda for Tax Base Reform Further Comment N J Jhaveri IN his reply (October 16, 1971) to my comment (July 17, 1671) on his article (May 15, 1971), I S Gulati suggests that his "guess" Is "quite food" whereas mine is a "bad estimate". While criticising my observations regarding initial exemption from income-tax, he declares "Jhaveri could not be more wrong" etc. My re-examination of Guild's estimate, however, reveals that the fallacy in Gulati's conclusions arises mainly because he overlooks (I cannot believe that he is unaware of) certain basic procedural steps in computing tax saving and tax liability.

Agenda for Tax Reform-A Comment

 was done during varying periods between September 1970 and February 1971. 7 Census of India 1971, "Instructions to Enumerators for Filling Up the Houselist and Establishment Schedule", p 21.

Tax Exemption on Personal Savings

Income-tax and wealth-tax exemption on personal savings fatting in certain specified categories is often given to provide relief to a tax-payer, in the hope that, he might thus save a part of his income in the tax-exempt forms of savings. For, while the disposable income after tax of a taxpayer increases with the exemption and the effective rate of tax on his income gets reduced, the expectation is that the relief will induce the tax-payer to increase savings in the specified forms and will thereby increase the level and flow of personal savings in the economy.

Bhoothalingam Committee on Depreciation-An Evaluation of Its Recommendations

Bhoothalingam Committee on Depreciation An Evaluation of Its Recommendations N J Jhaveri Business entities are permitted to reduce their gross profits by depreciation allowances which are granted on certain specified assets. The objective is to provide for replacement of a capital asset. Depreciation is computed by applying prescribed rates to the written-down value of an asset. The law also allows accelerated depreciation in the form of an additional "extra-shift" allowance.

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