Skip to main content

FinMin to look into tax issues of FPIs: Das

By
The finance ministry on Tuesday promised to look into some taxation issues raised by foreign portfolio investors (FPIs) and also certain suggestions made by them such as permitting them in short- term corporate paper. Some of these suggestions could be reflected in the Budget as well. After a meeting with FPIs here, Economic Affairs Secretary Shaktikanta Das (pictured) said: “ Suggestions both in terms of process simplification as well as some new suggestions have come ... some taxation issues were raised. The Department of Revenue also participated in the meeting so we will examine and look at the suggestions they have made.” Sources said the finance ministry discussed the proposal to allow FPIs to invest in corporate paper with outstanding maturity of less than three years.
To attract sticky and long term foreign money, current rules don’t permit overseas investors to invest in ultra short- term or short- term debt. The minimum maturity requirement is set at three years and there has been demand by FPIs to lower the same, particularly in the corporate debt segment.
Also, the meeting discussed the possibility of tweaking the definition of broad- based funds. A fund has to have a minimum of 20 investors to qualify as broadbased fund in category- 2 of the FPI regulations. One proposal mooted was to define broadbasing of funds on investment amount instead of compulsory requirement of minimum set of investors, sources said.
FPIs also request to fasten the process to obtain a PAN number to ease their entry into the Indian market, they said.
FPIs have also been demanding that tax issues relating to proposed IndiaSingapore double taxation avoidance agreement ( DTAA) and General Anti- Avoidance Rule ( GAAR) be resolved.
Business Standard New Delhi,21st September 2016

Comments

Post a Comment

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

By
  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6
Post a Comment
Read more

Jaitley plans to cut MSME tax rate to 25%

By
Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem
1 comment
Read more

Don't forget to verify your income tax return in August: Here's the process

By
  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s
Post a Comment
Read more