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Income Tax exemptions may be phased out in the budget
In a bid to streamline income tax system and plug revenue leakage, a comprehensive exercise is likely to be initiated in the forthcoming budget to phase-out exemptions.
In a bid to streamline income tax system and plug revenue leakage, a comprehensive exercise is likely to be initiated in the forthcoming budget to phase-out exemptions.
Official sources said that Finance Ministry has sought Law Ministry's opinion for this purpose particularly on the tax exemptions provided to corporates which are being increasingly misused leading to loss of revenue. The exemptions cost the exchequer over Rs 5,000 crore, the sources said adding the attempt would be to phase them out gradually in three to four years.
The phase-out exercise is expected to begin this year starting with those provided to corporates, as exemptions are increasingly being considered as amounting to "defrauding the exchequer", the sources said. Bureau Report
Official sources said that Finance Ministry has sought Law Ministry's opinion for this purpose particularly on the tax exemptions provided to corporates which are being increasingly misused leading to loss of revenue. The exemptions cost the exchequer over Rs 5,000 crore, the sources said adding the attempt would be to phase them out gradually in three to four years.
The phase-out exercise is expected to begin this year starting with those provided to corporates, as exemptions are increasingly being considered as amounting to "defrauding the exchequer", the sources said. Bureau Report