Revenue Potential and Impact on Corporate Sector

THE government of India had announced on December 27, 1990 that the allowable depreciation on the written down value of block of assets would be limited to 75 per cent of the amount calculated under the Income Tax Act and had estimated addi-tional resource mobilisation of Rs 750 crore from this measure during 1990-91. The government had earlier hiked the surcharge on corporate income tax from 8 per cent to 15 per cent and had estimated accretion of Rs 400 crore from that measure. These cor-