Tax Rate

In economics, the concept of a Laffer curve suggests that there is an optimal tax rate beyond which increasing the rate will not result in an increase in government revenue

The president's proposal calls for creating a new 39.6 per cent tax bracket for individuals earning at least $2.5 million, or couples making $5 million

Unit Linked Insurance Plans (ULIPs) with annual premiums exceeding Rs 2.5 lakh will now be subject to long-term capital gains (LTCG) tax at a rate of 12.5%, effective from April 1, 2026

Investments in unlisted debentures to be treated as long-term capital gains

Our selection of editorial and columns today look at the importance of the new Critical Minerals Mission, India-China ties, ideas for the Union Budget to jump-start growth, and more

Realtors' apex body CREDAI has suggested that the government in the upcoming Budget should fix income tax on affordable housing projects at only 15 per cent, saying this would help enhance supply of low-cost homes that have maximum demand. The Confederation of Real Estate Developers' Associations of India (CREDAI), which represents more than 13,000 developers, has made many suggestions for the upcoming Union Budget to address critical challenges faced by the sector. The recommendations include revision of definition of affordable housing, tax sops to real estate companies to build affordable homes and enhancing deduction limit of principal and interest paid by individuals on home loans. CREDAI has expressed serious concern over falling share of affordable housing segment in total fresh supply in the past few years. With reduction in supply, the share of affordable homes in the overall sales have also come down. It has stressed on the need to arrest this declining trend on a priorit

The Budget could consider levying customs duty on the basis of broader categories of the industry to reduce the number of tax rates, Price Waterhouse & Co LLP said on Thursday. The "government may come out with different slabs for various products depending on where it is placed in the value chain. Goods may be categorised as Value added/primary and raw material/Intermediary and accordingly slab rates may be fixed," said Anurag Sehgal, Managing Director at Price Waterhouse & Co LLP. The 2024-25 Budget had announced that a comprehensive review of the Customs Duty rate structure will be undertaken over the next six months to rationalise and simplify it for ease of trade, removal of duty inversion and reduction of disputes. To reduce classification disputes, the Budget had announced a review of the customs duty rates. Currently, there are more than a dozen customs duty rates and the government is looking at reducing the number of rate slabs. The Budget for 2025-26 will be tabled .

The flat-rate tax system helps lower the overall burden for high-income earners, who tend to earn more through investments

Expected cost to exchequer likely between Rs 650 crore and Rs 3,500 crore

The panel is working on two options to keep prices of essential goods in check

Market pundits also expect some changes in the tax treatment of gains arising from trades in the futures & options (F&O) segment

Move comes after Karnataka AAR exempts Namma Yatri from GST, citing its role as mere intermediary between auto drivers and customers

Simplifying taxes would help businesses navigating turbulent times, writes Ketan Dalal

A Parliamentary panel has recommended that the government should propose to the GST Council to reduce tax rates on fertilisers from the current 5 per cent. In its report laid in Parliament on Wednesday, Standing Committee on Chemicals and Fertilizers said the committee have been informed that fertilisers were placed under the 12 per cent GST bracket. However, on demand of various states, GST on fertilisers was reduced to 5 per cent. "The issue to further reduce GST on fertilisers was placed before the GST council in its 45th and 47th meetings held in September 2021 and June 2022, respectively. The GST council, however, did not recommend any change in the rates of fertilisers or other organic farm inputs. "The committee strongly recommend that the issue to further reduce GST on fertilisers may be placed before the GST Council at the earliest in the best interest of the farmers of our country," it added. The panel noted that fertilisers are levied GST at 5 per cent and its raw ...

The rollback in TCS rates for remittances reveals a pre-reform mindset of tax collectors

"It is exciting to know about the encouragement to states for setting up Unity Malls for the further promotion and sale of One District One Product scheme, GI and handicraft products"

The revision in income tax rates will increase the purchasing power of the middle class sections of the society, Bandhan Bank's Chief Executive Chandra Sekhar Ghosh said

Finance Minister Nirmala Sitharaman on Friday said the optional income tax regime with seven tax slabs was brought in by the government to ensure lower rates for those in the low income bracket. Sitharaman said in the old tax regime, every tax assesses can claim about 7-10 exemptions and the income tax rates vary between 10, 20, and 30 per cent, depending on income threshold. The minister said along with the old tax regime, the government has come up with a parallel system which has no exemptions, but with simpler and more favourable tax rates. "The reason why I had to bring in seven slabs was to make simpler and lower rates for those who are in the lower income (bracket)," Sitharaman said. She was speaking at an event to launch the book 'Reform Nation', authored by Observer Research Foundation Vice President Gautam Chikarmane. The government in Budget 2020-21 introduced the optional income tax regime, under which individuals and Hindu Undivided Families (HUFs) were to be taxed at

The Centre should share only 25 per cent of tax revenues with states, and the states should be allowed to impose their own income tax

As preparations begin for the next budget, discussions have gained steam around what the government would do with the capital gains tax regime