ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • AMC Sector: Growth-oriented funds lead the strong inflows in sector, says BK Securities – check key triggers
  • Q1FY23 Preview: Pharmaceutical firms likely to deliver subdued performance in domestic market, says Nirmal Bang
  • Chemical sector may report growth in operating profit both sequentially and YoY in Q1FY23 – Check details here
  • Finance Ministry empanels 12 transaction advisers for assisting in implementation of Public Private Partnership projects
  • Stock market on Monday: Market may continue its volatile trade, believes Anil Singhvi - crude, rupee movement key monitorable
Read in App
Business News » Personal Finance News

Budget 2019: Corporates need saving from triple taxation - Here's what Archit Gupta, Founder of ClearTax says

Union Budget 2019 is right around corner and what better gift could be given to corporates than to ease corporate taxes for India Inc. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Budget 2019: Corporates need saving from triple taxation - Here's what Archit Gupta, Founder of ClearTax says
With Modi 2.0, corporates are eyeing a reduction in taxes. Photo: Pixabay/PTI

With Modi 2.0, corporates are eyeing a reduction in taxes. It is believed that this will boost revenue of corporate India and hence power up the Indian economy as a whole. Corporates have been struggling under a big tax burden, which has impacted their revenues. Not only that, Indian companies have to deal with triple taxation module at the moment. Union Budget 2019 is right around corner and what better gift could be given to corporates than to ease corporate taxes for India Inc. 

Talking about budget expectation for corporate taxes, Archit Gupta, Founder & CEO of ClearTax says, "The corporate taxpayers are faced with the most headwinds ranging from sagging demand in the economy, streamlining of tax credits under the Goods and Services tax law, low global demand and low exports."

Interestingly, Gupta points out that, corporate tax rate is one of the highest in India at 30%. Globally, corporate tax rates have been brought down to 20 to 22% e.g., USA. 

Here's how India Inc is trapped in triple taxation, as per Gupta. 

Presently, the government has allowed for a low corporate tax rate of 25% for companies having a turnover up to 250 crores during the FY 2016-17. 

Further, dividends are taxed at the distribution level in the hands of the corporate at an effective rate of 20.56%. The distributed dividends are tax-free in the hands of the investors.

Additionally, the profits out of which the dividends are paid are subject to a corporate tax at 30%. This translates to triple taxation of the same income from the corporate to the ultimate taxpayer.

"Keeping in line with the global economic and tax trends and the phasing out of profit-linked incentives in India, the government should bring down the overall corporate tax rate to 25%. Further, the government should do away with the minimum alternate tax (MAT) and focus on investment-linked deductions to encourage economic activity and capital formation," Gupta said. 

In Gupta's view, there is a need to streamline the tax on dividends distributed by corporates too.

However, reducing tax burden comes with its own challenges. The govt’s revenues are already under pressure, if it tries to shore up tax collections, it may have to look at innovative ways to increase revenue. Thereby, Gupta says, "So a balance in the overall approach may be required to support collections."

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
corporate tax ratesBudget 2019Budget 2019 expectationsbudget 2019 india expectationsbudget 2019 tax changesbudget 2019 latest newsDividend Distribution Tax (DDT)
Written By: ZeeBiz WebTeam
Updated: Tue, Jun 18, 2019
08:19 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Budget expectations, 3 GST tax rates to digital age - a freewheeling interview with Raj Nair, President, IMC CC&I Budget expectations, 3 GST tax rates to digital age - a freewheeling interview with Raj Nair, President, IMC CC&I
Budget 2019 expectation - Dividend taxation easing needed; you pay this much on income from equities Budget 2019 expectation - Dividend taxation easing needed; you pay this much on income from equities
Wall Street higher as investors assess tax bill gains Wall Street higher as investors assess tax bill gains
Budget 2017: Industry, experts want corporate tax slashed to 25% Budget 2017: Industry, experts want corporate tax slashed to 25%
Donald Trump tax cuts could mean more Novartis investment in US Donald Trump tax cuts could mean more Novartis investment in US

LATEST NEWS

Foreign portfolio investors' exodus continues for 9th month; withdraw Rs 50,203 cr from equity market in June - know reasons here

Maruti Suzuki looks to deploy strong hybrid tech across model range

D-Mart Q1 revenue jumps almost 2-fold to Rs 9,806.89 cr

Q1FY23 Preview: Pharmaceutical firms likely to deliver subdued performance in domestic market, says Nirmal Bang -

Windfall tax to recoup most of Rs 1 lakh cr revenue lost in excise cuts, industry sources say

North Korea says US, South Korea-Japan agreement materialises US plan for 'Asian NATO'

AMC Sector: Growth-oriented funds lead the strong inflows, says BK Securities – check key triggers

Chemical sector may report growth in operating profit both sequentially and YoY in Q1FY23 – Check details here

This Android malware switches off Wi-Fi and drain mobile wallet

Rakesh Jhunjhunwala Stocks: Agrochemical firm Rallis India shares may surge by 23% despite pressure on margins – Here’s why?

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV