INDIA INCOME TAX POLICY..

Income Tax policy is an integral part of the fiscal policy of a country. It depends upon social, economic and political environment of a country. Indian income tax policy has always concentrated on mobilization of revenue for the Government keeping in view socio-economic objectives of the country.

Income Tax policy in India provides various incoem tax incentives for mobilization of savings, promoting investment in priority sectors, scientific research, maintaining regional balance, development of education, welfare of senior citizens and handicapped persons etc.

Moreover, it has been changed from time to time according to changed circumstances. The present chapter is an attempt to appraise the Central Government policy and changes made in it from time to time on the basis of following variables:

SOCIAL WELFARE MEASURES..

** Incentives for education

** Incentives for investment in housing

** Relief for maintenance of medical fitness

** Incentives for savings

** Pension schemes

** Donations under section 80 G

** Tax relief for senior citizens and women assessees

** Incentives for generating employment

** Simplified procedure for small taxpayers

RATIONALIZATION & SIMPLIFICATION MEASURES..

** Tax rates

** Income from house property

** Depreciation

** Capital gains

** Public charitable trusts

** Penalty related provisions

MEASURES FOR ECONOMIC DEVELOPMENT..

** Incentives for industrial development

** Exemption of agricultural income

** Promotion of scientific research and development

** Investment-linked tax incentives

** Incentives for capital market

 WIDENING OF TAX BASE

** Permanent Account Number  (PAN)

· * Annual Information Return (AIR)

·* Tax Deduction at Source (TDS)

·* E-filing of income tax return

·* Online tax accounting system (OLTAS)

·* Minimum alternate tax on companies (MAT)

·* Dividend Distribution Tax (DDT)

·* Securities Transaction Tax (SST)

·* Withdrawal of standard deduction for salaried persons

·* Withdrawal of deduction in respect of interest on specified securities

·* Measures introduced and withdrawn 

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