India To Cuts Taxes Within Four Years
October 7, 2015 Taxation in India
NEW DELHI – India is looking to reduce taxes on business and individuals, while boosting savings, stamping out tax evasion, and cutting unneeded tax exemptions.
While delivering a speech at Columbia University on October 5th the Minister of Finance of India Arun Jaitley said that the national government intends to reduce the rate of corporate income to 25 percent in the next four years.
The 25 percent tax rate will be levied at a flat rate, with no variations in the rate of the tax based the level of income earned by the business.
The Minister also said that along with the changes to corporate tax, the government will also aim to set personal income taxes to a “rational rate.
In order to fund the reduced tax rates, the government will continue its own measures aimed at fighting tax evasion and black money, such as requiring individuals to present Permanent Account Number when making large cash purchases.
Further, by reducing tax evasion and lowering taxes, the government will be able to cut tax exemptions for business and individuals.
However, exemptions which are aimed at encouraging individuals to increase their personal savings.
Photo By: Kaushik Narasimhan