Last Week, The Finance Minister announced the draft tax code. In his budget announcement on July 6 he had promised to follow up with the draft code. Well its here, and some of the changes, as you might have already seen in the press, are the most substantial that have been suggested in over a generation. So how do these affect you?
Well, the simple answer is that right now these changes don’t affect you. Why?
First of all, this is a draft code and contains proposals. Different interested parties have been invited to give their views, comments and feedback on the draft. You can too offer your feedback.
Secondly, if at all these proposals do pass muster, they will need to be drafted into a Parliamentary bill likely by end 2009 and be taken through legislative procedure. That itself could take time, and the Minister has suggested a start date of 2011 for when the code might actually be enforced, if it is a law by then.
So at the earliest, the impact of this tax code is likely two years away. So what should you be doing right now?
For starters just wait and watch. If you have strong views on some of the radical changes proposed, you should give your feedback here
Talk to your HR and payroll department to understand the impact of some of the proposed changes regarding how perquisites and benefits will be taxed. Ask them to explain to you how your take home pay might change and what they can do to mitigate the impact of any higher tax burden on you.
Sources:-www.reuters.in
No comments:
Post a Comment