The Supreme Court's verdict directing Tiger Global to pay capital gains tax on its 2018 sale of Flipkart shares is unlikely to accelerate the selloff by foreign portfolio investors (FPIs). However, legal and tax experts say the ruling sharpens scrutiny around treaty benefits and could influence how offshore investors structure future India bets.
'Grassroots-level corruption, which disrupts the last-mile work, cannot be ignored in your enthusiasm and drive to get going to complete the project.' 'Like it was in MGNREGA, in some states, it is the case with the Jal Jeevan mission.' 'The last minute levels of corruption can ruin the intent of the project itself.' 'When you see that people can game a particular well-intended and well-crafted project, you need to correct that.'
Ahead of the Union Budget 2026-27, Indian business houses have urged the government to make demergers tax-neutral, particularly in cases involving transfer of investments in associate companies with 25 per cent or more shareholding, under the new Income Tax Act. This may possibly help some companies planning to go public, according to a source.
The CBDT is investigating Jane Street for possibly misusing the India-Singapore tax treaty.
PwC wants to know what will happen when a company with substantial reserves is merged into a new concern and the resultant entity is converted into a limited liability partnership.
The income tax department on Wednesday conducted a survey operation at Hinduja Global Solutions, an entity of the Hinduja Group, in Mumbai and some other cities, official sources said.
Foreign portfolio investors (FPIs) from Mauritius may face higher scrutiny after the amendment in the India-Mauritius tax treaty introduced a principle purpose test (PPT) to prevent treaty abuse by taxpayers. The Mauritius government had in February decided to amend the double taxation avoidance agreement (DTAA) with India to align with the Organisation for Economic Co-operation and Development's proposal on base erosion and profit shifting. Although the agreement between India and Mauritius was signed on March 7, the protocol of the amendment was made public for the first time on Wednesday, said legal experts.
What the Budget could hold in store when it comes to tax rules like GAAR, MAT, PoEM, BEPS and ICDS.
One of the key concerns of foreign investors is how the general anti-avoidance rule would apply in case an investor is availing benefits under double taxation avoidance agreement.
Introduced in 2012, the General Anti-Avoidance Rules, were aimed at companies routing money through tax havens such as Mauritius, but implementation was delayed after an uproar from investors who feared harassment from tax authorities.
A look at a few important questions on GAAR and their answers.
Move could be a major relief to Vodafone.
The form will be redesigned in such a way that investors could fill up most of the details themselves
Draft guidelines say FIIs to be taxed, sub-accounts and non-treaty investors to be spared
Govt to seek public comments on Shome panel views on retrospective tax law amendments.
The minimum threshold to come under GAAR will be Rs 3 crore.
Tax experts said as a result of the amendments, companies operating from countries with which India didn't have DTAAs, would try to shift to countries with which India had such agreements, including Mauritius.
The government is trying to send a signal it wants to stimulate the economy and the stock market.
Adi Godrej says he hopes the government would address industry's apprehensions over some of the Budget taxation proposals on stalled reforms and so on.
Chidambaram had expressed unhappiness over the manner in which the two major contributors to the subsidy bill, petroleum and fertilisers, were handled prior to his appointment.
Concerned over sluggish growth and poor investment climate, Assocham President Rajkumar Dhoot met Planning Commission Deputy Chairman Montek Singh Ahluwalia on Thursday and demanded the controversial tax proposal GAAR be put in 'cold storage'.
Says reverse climate of pessimism, fix problems on tax front, remove policy bottlenecks to ease capital flows.
FII investments made after Aug 2010 to come under GAAR even if these have been routed through DTAA.
The panel, headed by former Central Board of Direct Taxes chairman N Rangachary, will be in addition to the one set up to review the General Anti-Avoidance Rules provisions to address the concerns of foreign investors.
He sought to know from the industry if it wanted India to become a no-tax country.
The finance ministry is not in favour of a deferral beyond April 2014. A final decision will be taken by the Prime Minister.
A senior official of the department said the papers were prepared after serious deliberations, and the I-T department's admission on these measures at this juncture could be significant pointers to achieving the direct tax collection target for 2012-13.
GAAR will not override the recently revised double taxation avoidance agreements with Mauritius and Singapore.
Moving the Finance Bill, 2012 for consideration and passage in the Lok Sabha, Mukherjee halved the capital gains tax for private equity investors to 10 per cent and relaxed the norms for arrest of persons involved in violation of Customs Act.
Clarity on GAAR, IIP data & rupee movement to guide investors.
Tax amount of Rs 10-15 crore may be the threshold above which rule could be invoked
The overall breadth is positive as 873 stocks are advancing while 425 are declining.
Confusion over India's new tax rules, slow rate cuts, and a weakening rupee could create a stock-picking environment.
Foreign investors are preferring to access the Indian market through the sub-account route rather than coming in as foreign institutional investors (FIIs), thanks to stricter regulatory norms and tax-related concerns related to the proposed general anti-avoidance rules (GAAR).
Stock indices slip on fears that income tax department will go after offshore derivatives
The General Anti-Avoidance Rule (GAAR) may have been deferred for a year but many foreign institutional investors (FIIs) do not want to take chances. They are shifting their trading positions to Singapore, where derivatives of India's key equity index, the Nifty, are listed.
the government will introduce some of its key provisions, such as General Anti-Avoidance Rules, in Budget 2012-13.
The overall market breadth was positive as 1,440 stocks advanced against 1,270 declining ones, out of 2,846 stocks traded on the BSE.
The government is studying suggestions on checking instances of double non-taxation and 'treaty shopping'
More relief is in store as the revised draft suggested a less taxing dispensation for triggering the General Anti-Avoidance Rule.
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