| |
 |
Tax Rebates
Taxation - Incentives, Rebates and Allowances - General
Tax Incentives
In each section of Personal Tax (income
tax), Indirect taxes (sales, excise & customs duty) and the corporate
taxes there are certain rebates given to the tax payer if he fits in the
prescribed criteria. These concessions or Tax Holidays as they call are
meant to attract more and more people to pay tax. These rebates also mean
less 'pinch' on the pockets and a good fast growth of economy.
General Tax Incentives
The Government offers many incentives to investors
in India with a view to stimulating industrial growth and development.
The incentives offered are normally in line with the government's economic
philosophy, and are revised regularly to accommodate new areas of emphasis.
The following are some of the important incentives offered, which significantly
reduce the effective tax rates for the beneficiary companies:
- Five year tax holiday for :
- Power projects.
- Firms engaged in exports.
- New industries in notified states and for new industrial units established, in electronic
hardware/software parks.
- Export Oriented Units and units in. Free Trade Zones.
- As of 1994-95 budget firms engaged in providing infrastructure facilities, can also avail
of this benefit.
- Tax deductions of of 100 per cent of export profits.
- Deduction of 30 per cent
of net (total) income for 10 years for new industrial undertakings.
- Deduction of 50 per cent
on foreign exchange earnings by construction companies, hotels and on
royalty, commission etc. earned in foreign exchange.
- Deduction in respect
of certain inter-corporate dividends to the extent of dividend declared.
For Further queries
on the above please write to us
|
|
