How Government is ensuring enhanced tax collection: An overview of few tax amendment of recent past

 

1.  LTCG tax on equity introduced (2018): 10% tax on gains over ₹1 lakh without indexation benefit – Such LTCG was earlier tax-free.

2.  Corporate tax rate cut (2019): Reduced to 22% for companies and 15% for new manufacturing units but slab rates for individuals remain the same even after 15 years.

3.  DDT abolished (2020): Dividends become taxable in shareholders’ hands at applicable rates leading to double taxation.

4.  Higher surcharge on individual taxpayers (2019): Surcharge of 25% on incomes ₹2-5 crore and 37% above ₹5 crore.

5.  New income tax regime (2020): Optional lower tax rates without exemptions, thus discouraging savings in youngsters for their future social security!

6.  Angel tax introduced (2017): Tax on startup valuation premiums from domestic investors (later eased out)

7.  TDS on cash withdrawals (2019): 2% TDS on cash withdrawals exceeding ₹1 crore annually. First time ever that TDS isnt being deducted on income!!

8.  Tax on Provident Fund interest (2021): Interest on employee contributions above ₹2.5 lakh in a year made taxable.

9.  Tax on cryptocurrency gains (2022): 30% tax on crypto profits without set-off of losses – just destroying the crypto investors’ hard earned moneys!

10.  Penalty for not linking PAN with Aadhaar (2021): ₹1,000 fine imposed for non-compliance.

11.  Capital Gain indexation removed.

12.  Rates of LTCG & STCG on equity increased.

These are some of the latest instances which have ensured enhanced tax collection to the Government Treasury.