The SC has gone a step further to state that even if one were to not apply the codified GAAR provisions, the judicial GAAR would continue to apply, point out Pranav Sayta and Bhargav Selarka.
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.
GAAR will not override the recently revised double taxation avoidance agreements with Mauritius and Singapore.
Committee would manage the consultation process and finalise the draft GAAR Guidelines.
A look at a few important questions on GAAR and their answers.
The government is trying to send a signal it wants to stimulate the economy and the stock market.
Introduction of GAAR, which was proposed by then Finance Minister Pranab Mukherjee in the Budget 2012-13 to check tax evasion, had triggered strong opposition by foreign investors following which its implementation was postponed till April next year.
Panel has suggested that GAAR provisions should not be invoked to examine the genuineness of the residency of entities in Mauritius.
Tax amount of Rs 10-15 crore may be the threshold above which rule could be invoked
The Finance Ministry, late Thursday night, came out with draft guidelines on General Anti Avoidance Rule -- a budgetary proposal to check tax evasion.
Draft guidelines say FIIs to be taxed, sub-accounts and non-treaty investors to be spared
After taking charge, P Chidambaram promised fine-tuning of policies and place a stable tax regime.
The main Opposition party suggested that Prime Minister Manmohan Singh and former Finance Minister Pranab Mukherjee were not on the same page with regard to the retrospective amendment to tax laws against the backdrop of Vodafone case, leading to the current precarious situation.
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'.
Govt to seek public comments on Shome panel views on retrospective tax law amendments.
The finance ministry is not in favour of a deferral beyond April 2014. A final decision will be taken by the Prime Minister.
The government on Tuesday said it planned to introduce safeguards in the proposed General Anti Avoidance Rules to address the industry's concerns over misuse of the tax law provisions.
The minimum threshold to come under GAAR will be Rs 3 crore.
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.
The overall breadth is positive as 873 stocks are advancing while 425 are declining.
FII investments made after Aug 2010 to come under GAAR even if these have been routed through DTAA.
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.
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.
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.
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.
What the Budget could hold in store when it comes to tax rules like GAAR, MAT, PoEM, BEPS and ICDS.
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.
FIIs fear short-term capital gains would give rise to tax uncertainty and make their operations difficult, reports Pavan Burugula from Mumbai.
Stock indices slip on fears that income tax department will go after offshore derivatives
The government is studying suggestions on checking instances of double non-taxation and 'treaty shopping'
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.
Analysts expect the inflows to accelerate further.
The BSE Sensex ended at 17,257, up 205 points and the Nifty ended at 5,243, up 59 points.
Overseas investors witnessed net inflow of Rs 24,563 cr in Feb
The S&P BSE Sensex ended higher by 464 points or 1.95% at 24,243.
Foreign Direct Investment inflows from Mauritius have almost halved during April-January period of last fiscal to $4.11 billion on fears of impact of GAAR and possible re-negotiation of the tax avoidance treaty.
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