Tax Information Network (TIN)

Tax Information Network (TIN) is an initiative by Income Tax Department of India (ITD) for the modernisation of the system for collection, processing, monitoring and accounting of direct taxes using information technology. TIN is a repository of nationwide Tax related information, and has been established by NSDL e-Governance Infrastructure Limited on behalf of ITD.

Service Tax: A Growing Revenue Source

Year No. of services Tax rate in Revenue Growth over previous
per cent (Rs. crore) year in per cent
2004-5 75 10 14200 80.0
2005-6 78 10 23055 62.4
2006-7 92 12 37598 63.1
2007-8 98 12 51301 36.4
2008-9 106 12* 60941 18.8
2009-10 109 10 58422 �4.1
2010-11 117 10 71016 21.6
2011-12(P) 119 10 97579 37.4
2012-13 (April-December)@ Negative list 12 80927 33.0

EEE (Exempt-Exempt-Exempt)

It refers to a framework for tax treatment of savings and investment where contributions, accumulations and benefits (withdrawals) are all tax-exempt.

EET (Exempt-Exempt-Taxed)

EET suggests a framework for tax treatment of savings and investment where contributions are exempt, accumulations are exempt, but benefits (withdrawals) are taxed as ordinary income.

Securities Transaction Tax (STT)

STT is a kind of turnover tax where the investor has to pay a small tax on the total consideration paid or received in a share transaction. STT was introduced in the Budget of 2004 and implemented in Oct 2004. The objective behind the levy is to mitigate tax evasion as the same is taxed at source. Stocks, futures, option, mutual funds and exchange traded funds come under the ambit of STT. The STT applicable in the case of intraday transaction will be different from the one applicable in the case of delivery transaction. Likewise, the STT applicable in the case of buying a security will be different from the one applicable in the case of selling the security.

STT will be applicable in the case of transaction that takes place in the exchanges. For availing the exemption in the case of long-term capital gain, the asset under consideration has to be subjected to STT.

Direct Benefit Transfer (DBT)

The DBT plan introduced on 1 January 2013 with seven schemes in 20 districts. India has embarked on DBT scheme in selected districts wherein it has been envisaged that benefit such as scholarships, pensions, and MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) wages will be directly credited to the Bank or post office accounts of identified beneficiaries. The DBT scheme will not substitute entirely for delivery of public services for now. It will replace neither food and kerosene subsidies under the TPDS nor fertilizer subsidies. The DBT is designed to improve targeting, reduce corruption, eliminate waste, control expenditure, and facilitate reforms. Electronic transfer of benefits is a simple design change and transfers that are already taking place through paper and cash mode will now be done through electronic transfers. This has been enabled by rapid roll out of Aadhar (Unique Identity) now covering 200 million people and rapidly growing to cover 600 million (nearly half of our population), with the National Population Register covering the other half of the populace. The DBT in tandem with such unique identification will ensure that the benefits reach the target groups faster and minimize inclusion and exclusion errors as well as corruption that are associated with manual processes.

Written by princy

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