Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
15Activity
0 of .
Results for:
No results containing your search query
P. 1
Revised Direct Taxes Code 2010-A Critique on Revised Discussion Paper-VRK100-21062010

Revised Direct Taxes Code 2010-A Critique on Revised Discussion Paper-VRK100-21062010

Ratings: (0)|Views: 418|Likes:
RAMA KRISHNA VADLAMUDI, Bombay, has made a criticial analysis of Direct Taxes Code in the context of the Revised Discussion Paper released by the Government of India on June 15, 2010. The proposals of DTC/RDP have received more brickbats rather then bouquets from the public and experts. The author has written a series of all articles on DTC including the latest RDP. This is another DTC article, that critically looked at the provisions of DTC/RDP in relation to long-term capital gains and other issues pertaining to individuals and salaried class taxpayers in India.
RAMA KRISHNA VADLAMUDI, Bombay, has made a criticial analysis of Direct Taxes Code in the context of the Revised Discussion Paper released by the Government of India on June 15, 2010. The proposals of DTC/RDP have received more brickbats rather then bouquets from the public and experts. The author has written a series of all articles on DTC including the latest RDP. This is another DTC article, that critically looked at the provisions of DTC/RDP in relation to long-term capital gains and other issues pertaining to individuals and salaried class taxpayers in India.

More info:

Published by: RamaKrishna Vadlamudi on Jun 19, 2010
Copyright:Attribution Non-commercial No-derivs

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

09/14/2011

pdf

text

original

 
On a cool Sunday evening, a Child walks on a beach with gay abandon. She starts to build a castle in the sand. She collects sand and arranges it into a big heap. She tries to mould it as per her imagination. After sometime, she completes the sand castle and she goes around the castle merrily – laughing,cheering and shouting.This attracts some other people loitering on the beach. They come and start inspecting the castle. Some applaud it and some suggest little changes to the castle to make it more beautiful. First the child is confused about making the changes. At last, she obliges the onlookers’ advice and makes alterations with some tinkering to the minarets here and to the windows there.Now, more onlookers start giving advice on making it look more wonderful. The child listens patiently to them and makes more alterations with her tender hands.Then a disaster strikes. The castle suddenly collapses due to too many alterations. Disappointed by it, the child walks home with a heavy heart.
Some of you may be wondering what this is all about! The above story sums upthe predicament of the Government of India in bringing about severalamendments to the Direct Taxes Code (DTC). It may be recalled that theGovernment had brought out a Revised Discussion Paper (RDP) on 15
th
of June2010 making certain changes to the draft DTC Bill which was released in August2009. The Government has apparently messed up the whole issue of bringing atransparent DTC, which could have been understandable easily by ordinarypersons; providing stability, equality and clarity; and without any distortions. Thisarticle provides a critical analysis of important issues in the DTC proposals.
Rama Krishna Vadlamudi, BOMBAY June 21, 2010 
Please read the author’s disclaimer given at the end of this article.
 
Rama Krishna Vadlamudi, BOMBAY June 21, 2010 
www.scribd.com/vrk100 vrk_100@yahoo.co.in
 
MY BLOG: www.ramakrishnavadlamudi.blogspot.com 
Page 2 of 14 
The impact is explained with catchy photographs!The article is organized on the following lines:
 
A critical analysis of the Capital Gains tax on sharesWhy flip-flops are not good for the overall tax efficiencyBackground to abolition of long-term capital gains in 2003/2004Is 25 per cent Public Shareholding a joke?Why it is a mixed bag for individuals and salaried classA big climb down and dilution of reforms by the Government
The following important annexures are given at the end of this article:
(A must-read for all investors, taxpayeers and market players)
Annexure I : Difference between EEE and EET methodsAnnexure II : The Six Pack!Annexure III : Types of tax exemptions that may be continued after DTCAnnexure IV : Types of tax exemptions that may be withdrawn after DTC
Abbreviations Used: 
DDT-Dividend Distribution Tax PFRDA-Pension Fund Regulatory andDTC 2009-Direct Taxes Code August 2009 Development AuthorityEEE-Exempt, Exempt & ExemptLTCG-Long-term capital gainsEET-Exempt, Exempt & Tax PPF-Public Provident FundELSS-Equity Linked Savings Scheme RDP-Revised Discussion Paper of DTCof the mutual funds released by Govt on 15.6.2010EPF-Employee Provident Fund STCG-Short-term Capital GainsGPF-Government Provident Fund SCSS-Senior Citizen Savings SchemeIT Act-Income Tax Act, 1961 STT-Securities Transaction TaxLTC-Leave Travel Concession MAT-Minimum Alternative TaxNPS-New Pension System administered ULIP-Unit Linked Insurance Plan ofby PFRDA insurance companiesNSC-National Savings CertificatePF-Provident Fund VPF-Voluntary Provident Fund
 
Rama Krishna Vadlamudi, BOMBAY June 21, 2010 
www.scribd.com/vrk100 vrk_100@yahoo.co.in
 
MY BLOG: www.ramakrishnavadlamudi.blogspot.com 
Page 3 of 14 
TWISTS AND TURNS ?
Too many flip-flops not good
 Tax laws are expected to provide stabilityand certainty in the minds of taxpayers. Insuch a scenario, taxpayers can plan theirlong-term investments properly to meet theirinvestment objectives – like expenses forchildren’s education, health and marriage,retirement needs, etc.Too much tinkering with tax laws upsets thecalculations of taxpayers and it is not goodin the long-term interest of the economy.
Is long-term investment in shares losing shirt?
 
The way the Government is proposing to bring frequentchanges in the tax treatment of capital gains on sharesis not good for the capital markets. It impacts the publicshareholding adversely in the long run. What thepolicymakers have failed to notice is that the investorbehaviour changes swiftly due to changes in tax laws.And it is very hard to bring the public or institutionsback to the primary/secondary market. Investors whoparticipated heavily in primary market in 2007/2008have lost their money. They are very reluctant to investin IPOs in 2009/2010. The current lackluster publicparticipation in initial public offers is a case in point.

Activity (15)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
RamaKrishna Vadlamudi added this note
Readers, as promised I have just published my critique on the Revised Discussion Paper released on June 15, 2010. I invite your comments on SCRIBD.
RamaKrishna Vadlamudi added this note
Readers, as promised I have just published my critique on the Revised Discussion Paper released on June 15, 2010. I invite your comments on SCRIBD.
smnthsai liked this
Sunitha Chenthil liked this
skkarim liked this
Tarique kamaal liked this
sanjay_sbi liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->