Page 27 - NIS English January1-15
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ecisions such as pan-India
uniform indirect taxation NEW DAWN
Dsystem i.e. Goods and GST: ONE NATION, ONE TAX
Services Tax (GST), lowest
l Goods and Services Tax (GST) was implemented as the
Corporate Tax in 100 years,
101st Constitutional Amendment. The Bill was passed by
Insolvency and Bankruptcy Code calling Parliament session at the midnight of June 30, 2017
(IBC), demonetisation to weed l Before GST, tax rates lacked uniformity and were confusing
out black money, tax reforms and and complex. GST is the most revolutionary step towards
single window clearance for trade economic integration of the country
have made a huge impact on the l Rates of tax levied were kept at four different rates of
Indian economy. This is evident 5,12,18 and 28 per cent, ranging from essential items for
from the rising graph of foreign life to luxury items. GST is proving to be a milestone in
investments and rise in the Ease improving the overall investment climate in the country
of Doing Business Index ranking of l It is providing impetus to the Make in India campaign
India across the world. DEMONETISATION: A REVOLUTIONARY STEP
The Prime Minister made a TOWARDS TRANSPARENCY
Clarian Call Jaan Hai To Jahan l Decision of demonetising currency taken on November
Hai when Corona pandemic hit 8, 2016, laid a strong foundation of making economy
the country and took decisions like cashless. It is a revolutionary step towards a strong and
imposing lockdown to deal with the transparent economy
menace. But, once the country was l It resulted in the increase of number of IT returns from
prepared to check the spread, he 4.04 Crore to 6.79 Crore
l Net direct tax collection increased from Rs 6,95,792 Crore
INSOLVENCY AND BANKRUPTCY
in 2015 to Rs 10,50,678 Crore in 2020
CODE (IBC): STRICT REDUCTION
l UPI transactions were Rs 6,952 Crore in 2016-17, which
OF NPA ON DEBTORS
had crossed Rs 21 Lakh Crore in 2019-20. In November
l When a debtor is unable to repay
2020 alone, the number crossed Rs 3.90 Lakh Crore
loan taken by him, loan is being
l Rise in the number of Corporate Tax returns from 8 Lakh in
declared as Non Performing
2016 to 9.34 Lakh in 2019
Asset (NPA)
l In November 2016, currency notes worth Rs 17.74 Lakh
l Being unable to repay the debt by Crore were in circulation which increased to 22.35 Lakh
a businessman not only worsens
Crore by December 2, 2019
the health of the banking system, l Income Tax department raids resulted in the recovery of
but also weakens the economy. Rs 3,950 Crore worth of undeclared assets from April 2017
It is the Government’s treasury till September 2020
which ultimately bears the losses l Undisclosed income of Rs 45,218 Crore recovered through
of public sector banks and IT Department raids
financial institutions l Rs 3 Lakh Crore returned to the banking system post
l To settle this issue, the demonetisation
Government implemented IBC
in 2016 for the first time. Rate of CORPORATE TAX: REDUCING TAX BURDEN ON COMPANIES
NPAs got reduced by 9 per cent Earlier 30 per cent Corporate Tax levied on domestic companies,
after this code apart from surcharge. Now, it has been reduced to 22 per cent.
l India was at 137th rank in global With effective rates and surcharge, it comes to around 25.17 per
resolving insolvency index in 2014. cent. It will be beneficial to the trade. It will benefit manufacturing
Now, the country is at 52nd rank units and will create employment opportunities
New India Samachar 25
