CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. India Should Reform Income And Property Taxes, Says OECD

India Should Reform Income And Property Taxes, Says OECD

by Mary Swire, Tax-News.com, Hong Kong

02 March 2017


India should consider withdrawing a property taxation system that allows people to maximize their tax-free income, the OECD has said in its annual economic report for the country.

In much of the country, any individual who is born Hindhu, Sikh, Jain, or Buddhist can form a Hindu Undivided Fund if they are married. Those with substantial property income can cut their tax liabilities by filing both an individual and HUF return to double their tax-free income.

While some states already refuse to recognize the system, the OECD said that withdrawing the facility across the country would allow "fairer taxation of capital income" and "enable the introduction of inheritance and gift taxes," the OECD said.

The report also criticized the current mix of value-added and sales taxes as "inefficient" and echoed a recent IMF report in calling for them to be replaced by the long awaited Goods and Services Tax.

"Providing more certainty for potential investor regarding future tax rules, their interpretation and application, is also crucial to creating an attractive environment for foreign investment," it said.

The OECD added that country needs to make income and property taxes more "growth-friendly and redistributive."

TAGS: environment | tax | investment | value added tax (VAT) | sales tax | India | property tax | Organisation for Economic Co-operation and Development (OECD) | gift tax | Tax

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 

Log into Tax-News+
Not registered yet? Find out about our daily news alert service »

 Email: 
 Password: 

Login »

Forgotten your password?







Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »