Businesses can be highly profitable if they are able to collect, spend and use their cash to pay dividends.
In fact, it is this cash that is the real source of their income and this is where many companies find themselves.
However, even though the corporate income tax (CIT) has been levied since 1986, it still remains a controversial issue in India.
This is because the income tax code was designed with the cash-based economy in mind and it has been argued that it is not fair to all businesses on account of its taxation.
For the purposes of this article, we will examine the cash economy in India and its impact on businesses.
In India, the cash is the main source of revenue for many businesses.
This cash is taxed at a rate of 13.5% on income above Rs 1 lakh.
However, it has to be spent in order to meet this requirement.
Therefore, businesses have to generate their own income by paying dividends and this can often be done through a range of methods, such as holding bank accounts, selling stocks, borrowing money or paying rent.
Companies that have been paying dividends or capital gains tax on their income are exempt from the CIT.
However when they sell their shares, the tax has to fall on their sales.
As a result, a significant portion of companies are unable to continue to pay dividend payments to their shareholders, leaving them vulnerable to the CTS.
While this tax is levied on cash, other types of capital are also subject to the levy.
The income tax on capital gains (CPG) is also levied on income generated by the business.
This can range from dividend payments and profits to capital gains gains taxes on capital gain income, which are levied on the income of businesses that sell capital goods.
Capital gains tax is imposed on the profit earned from the sale of capital goods such as machinery, buildings and machinery, even if the profits were not generated from those goods.
These goods are typically sold for cash.
As mentioned earlier, a number of companies have been hit by the CCT and it is believed that a large number of them have not been able to pay the tax as their income from the business has been taxed as income.
In a recent survey conducted by the Tax Foundation, it was found that more than 10% of all companies had been hit.
According to the Taxation Reforms Board (TRB), around 11% of India’s businesses have been in financial trouble.
The majority of these businesses are small- and medium-sized businesses.
However the tax collection system in India is often not as simple as it could be.
Tax collection has been a major challenge for the country’s tax collectors.
This includes the inability to collect tax on dividend payments, which were levied on profits and dividends from assets.
There are many loopholes in the tax laws, which make it difficult for tax collectors to collect the tax due.
For instance, the dividend payment is taxed on its earnings, while the profit that is generated from selling a share is not taxed.
Similarly, if a company sells its shares, then its tax is paid on the sale.
This means that, while a small company can pay no tax, a large company may not be able to.
Another issue that has made it difficult to collect CIT is the nature of the dividends.
These are typically paid in the form of cash and, therefore, the taxpayer has to use his/her own cash to cover the cost of the dividend.
In addition, the nature and amount of dividends are also often complex, and often cannot be determined.
This can also lead to companies being forced to pay large amounts of CIT even when the dividends have been paid.
For instance, a small-and medium-size business can receive around Rs 3 lakh from a dividend, which could be spent on salaries, salaries, food, electricity and other essential needs of the business, but the amount that is needed for these items could run into the billions.
The larger the business the more difficult this situation becomes.
A third issue that needs to be addressed is the amount of tax that is paid by businesses.
While a company can deduct all its taxable income, a business can only deduct income from capital assets.
This limits the amount a business may be able claim on tax, making it difficult and expensive for them to make a profit.
While the CPT has been introduced to help companies reduce their tax liability, this is not enough.
The Tax Department needs to increase the rate of the CTT and make the CTV applicable to capital assets that are taxable, such in real estate, oil, real estate related services and construction.
The main issue that faces many businesses is the CGT.
The CGT is levied at 13.2% on earnings above Rs 15 lakh.
This amount is usually paid in cash.
The tax is applied on the capital gains income and on the dividend income.
The amount that can be claimed on C