Government Sources

DIRECT TAXES
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Tax paid by person in new tax slab when compared with old is
more. Thus, through this government is trying to reduce inflation, by
reducing consumption and is also trying to collect more revenue. It
is good technique through which fiscal deficit can also be improved.
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While recently, the government, had reduced the

effective corporate tax rate to 25.17 per cent.
Earlier effective corporate was 37.93 percent.

Historically, dividend was always taxable in the

hands of shareholders but now the beneficiary
have to pay the tax on the dividend. Dividend
income is thus, taxable in receiver's hand.
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 The employer's contribution exceeding Rs 7.5 lakh in a
financial year to retirement funds such as Employees
Provident Fund (EPF), National Pension System (NPS),
or any other superannuation fund is proposed to be
made taxable in the hands of the employee. This will
impact the higher basic salary earners negatively. This is
another move to tax high earners more