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Tuesday, March 01, 2016

BUDGET 2016-17

The MISSING Note

Tax forgone gets a fancy name, but still a burden


TEAM TOI (1/3/16)


In 2015-16, the Centre lost potential tax revenue worth a staggering Rs 6.11 lakh crore due to various exemptions, concessions, rebates, etc, given to sections of taxpayers. This is an increase of Rs 56,779 croreover the previous fiscal.

Earlier called `revenue forgone', but renamed `revenue impact of tax incentives' by the Modi government, this is described as “indirect subsidy to preferred taxpayers“. This figure does not include export promotion-related concessions, which amount to an additional Rs 50,938 crore.
Direct tax concessions worth Rs 68,711 crore were given to corporate bodies.

Interestingly, the finance ministry found that the effective tax rate for corporate bodies in 201415 was just 24.67% compared to the statutory rate of 32.45%. Some of the biggest companies were paying taxes at rates even lower than the average!

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The Gov't/Babus in MoF so generous to forego such huge sums of Tax money, are unmoved on the few hundred crores (which can be met by Pension Funds of respective Banks) required for 100%DA Neutralization, Updation, Family Pension Improvements etc!

Penny frugal......Pound generous?

Perumalmaruthu