Aspirant Hub

Concept of Tax Information Exchange Agreement in India with Tax Havens and Secrecy Jurisdictions.  There is a great and importance of Tax Information Exchange Agreement in India because as per section 90(1) of Income Tax Act, 1961, Government of India i.e. Central Government can enter into Double Taxation Avoidance Agreement with other countries so as to avoid double taxation of income in both the countries. The basic concept behind DTAA is to ensure that there should not be undue hardship in the hands of tax payers i.e. income earned in one country should not be taxed twice because of source and residence criteria in both countries and most importantly DTAA contains article usually article no. 26 which deals with Exchange of Tax Information which provides for various tax and financial information about the resident persons who have invested or have any significance financial presence in that territory to the other territory. But what about other countries where there is no prov...

Is new Tax regime is essential There is great need and necessity of introducing new tax law in India i.e. there is need to replace income tax act, 1961 with new tax law ( Direct tax code ) As the present law i.e. income tax act, 1961 is very much vague, moreover it is one of the world's most complex law which has undergone many changes i.e. amendments since it's commencement. Moreover, due to it' s vagueness and complexity it is difficult to interpretate properly. Many of the provisions have a overriding effect and contradiction on each other , due to which there are chances of tax avoidance and evasion. Many of the situations are there where tax avoidance and evasion can occur like there is no provision in entire income tax act to tackle CFC's but there is a provision in direct tax code which is a proposed tax bill in near future in India. To combat such avoidance of tax there is a need to amend existing tax law or to introduce new law containing such stringent provi...