Renegotiated tax treaty to relax banking secrecy laws.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
The existing double taxation avoidance agreements will not be covered by the proposed change, implying that in order to tax Facebook, Google and the like, India will require to renegotiate tax treaties.
In the midst of a row over tainted money stashed in banks in Switzerland, the government on Tuesday said it will begin talks with that country in December for amending the relevant treaty and it was not interested in a "roving inquiry".
India and Bangladesh are likely to sign three agreements on trade, investment protection and avoidance of double taxation during Bangladeshi Prime Minister Begum Khaleda Zia's three-day state visit to India from March 20.
In the case of double-income couples, not more than 40 per cent of the net income of one partner should be the EMI for the property.
India and Myanmar have signed a Double Taxation Avoidance Agreement (DTAA), which provides that business profits will be taxable in the source state. In the case of India, the DTAA will cover income tax and surcharge and in the case of Myanmar, income tax and profit tax. However the maximum rate of tax to be charged in the country of source will not exceed 5 per cent in the case of dividends & 10% in the case of interest and royalties. The deal also has anti-abuse provisions.
Higher oil prices, while not having an impact on Centre's revenues due to fixed tax rate, are pushing up states' sales tax revenue.
Hailing the Supreme Court verdict on tax exemption to Mauritius-based companies, the finance ministry said on Wednesday that it would help in higher inflow from foreign institutional investors.
Inviting investment from India, Vietnam on Monday said it was committed to building stable, transparent and free trade relations with all its trading partners.
The Union Cabinet on Wednesday gave its approval for the proposed SAARC Limited Multilateral Agreement for the Avoidance of Double Taxation and Mutual Administrative Assistance in tax matters.
The proposed India-Iran Double Taxation Avoidance Agreement, which the two countries included in their joint New Delhi declaration in 2003, has run into a hurdle.
Sitaram Yechury, politburo member of CPM, on Friday warned the government against market volatility and FII activity.
India told Mauritius that it will not take any decisions that will "adversely impact" bilateral relations while reassuring the country that amendments to the bilateral tax treaty would be made only after considering the legitimate interests of both sides.
Jethmalani said that the BJP-led government at the Centre should take no step without obtaining the consent of the SIT which has been set up to probe the matter.
Syrian President Bashar al-Assad arrived in New Delhi on Tuesday on his first visit to India during which the two countries will discuss ways to enhance ties and sign two agreements, including one on avoidance of double taxation.
Kotak Mahindra Bank on Saturday reported a 25 per cent growth in its March quarter net profit at Rs 5,302 crore, limited by a drop in the core income due to narrow interest margins. On a standalone basis, the city-headquartered lender's Q4 net profit grew 18 per cent to Rs 4,133 crore. The FY24 consolidated net profit grew 22 per cent to Rs 18,213 crore.
Mauritius has rejected compensation of Rs 500 crore to plug loopholes in double taxation avoidance treaty. Mauritius accounts for nearly half of all foreign direct investment (FDI) inflows to India. With the tightening of tax laws, India attempted to amend the treaty. Due to the treaty, India was suffering over Rs 4,000 crore loss annually for some years in terms of revenue foregone on account of the capital gains exemption for investors routing their funds through Mauritius.
The Non-Resident Indians (NRIs) living in the US, UK, Canada and Singapore can now avail the benefit of a lesser tax deduction on their Non-Resident fixed deposit with ICICI Bank, a top bank official said in Mumbai. The NRO FD Plus offers the benefit of concessional rate of tax deducted at source (TDS) under the Double Taxation Avoidance Agreement (DTAA) of India with these countries, ICICI Bank General Manager and Head NRI Services Manish Mishra said.
Comptroller and Auditor General has pulled up the finance ministry for flaws in double taxation avoidance agreements
Short of saying that it will not renegotiate the Double Taxation Awardence Treaty with India, Mauritius said on Tuesday there was a need for a balanced approach as the agreement has benefited both the countries since it was framed in 1983.
Efforts to initiate a double taxation avoidance agreement with Singapore has hit a roadblock. This is because of Singapore's reluctance to include an information-sharing clause in the agreement.
The government is studying suggestions on checking instances of double non-taxation and 'treaty shopping'
India is expected to sign Double Taxation Avoidance Treaties with more countries as part of measures to ensure smoother international trade, a senior finance ministry official said on Wednesday.
The MoU on combating crime covering terrorism was signed by Home Minister Shivraj Patil and Saudi Foreign Minister Prince Saud al-Faizal bin Abdul Aziz al Saud.\n\n
The Centre is in talks with Mauritius with regard to the long-pending revision of the bilateral tax treaty.
The Cabinet on Tuesday approved signing of an agreement with Slovak Republic for the avoidance of double taxation and prevention of tax evasion.
Concerned over several violations by overseas corporate bodies including misuse of Indo-Mauritius double taxation avoidance treaty, the Joint Parliamentary Committee, which probed the securities scam has highlighted the absence of regulation.
