Govt relaxes income tax rule to attract single institutional entities
Many institutional entities had long demanded for a change in the existing Income Tax framework so as to relax the harsh condition imposed on the tax payers The Dollar Business Bureau Single institutional entities will be eligible for income tax exemption, if the investors meet the minimum criteria of employing at least 25 members The government has tweaked the existing income tax framework with an aim to extend the exemption of taxes to single institutional entities. The liberalised framework will come into effect on April 1 this year and is envisaged to escalate offshore fund management activities in the domestic market. "The CBDT has issued operating rules governing Section 9A of the I-T Act, which provides for special taxation regime with effect from April ...
Black money: SIT seeks greater vigilance on shell companies
Source: PIB, Government of India The Special Investigation Team (SIT) in its third report had observed the following with respect to shell companies and beneficial ownership: Shell companies and beneficial ownership (Reference p. 73-76 of the third SIT report) The report of the committee headed by Chairman, CBDT on “Measures to tackle Black Money in India and Abroad” submitted in 2012 observed as follows: “The primary method of generation of black money remains suppression of receipts and inflation of expenditure. The suppression could be over a range of businesses and industrial activities which are covered by what may be called ‘primary’ enactments to regulate sale receipts, actual production, charging amount in excess of statutory amounts, etc. ….. However, as manipulation of income is not always ...
Govt eases tax norms to reduce transfer pricing disputes
The Dollar Business Bureau As part of its efforts to simplify the taxation norms, the government on Tuesday amended the Income-tax Act to reduce ambiguities in domestic and international transfer pricing cases. The changes are aimed at establishing a transparent transfer pricing policy and send a positive signal to investors. “The Income-tax Act provides for determination of income having regard to Arm’s Length Price (ALP) in case of international transactions and specified domestic transactions. The amended rules would therefore provide clarity in determination of price in transfer pricing cases and reduce disputes on transfer pricing issues,” the Ministry of Finance said in a statement. The amended rule will be applicable for computation of ALP on all international transactions and specified domestic transactions ...
Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Amendment) Regulations, 2014
Dated 3rd December, 2014 | Copy of | Notification no.FEMA.328/RB-2014 | In exercise of the powers conferred by clause (b) of Section 9 and clause (e) of sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India makes the following amendment in the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000, (Notification No. FEMA 10/2000-RB dated 3rd May, 2000), namely:- 1. Short title and commencement:- (i) These Regulations may be called the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Amendment) Regulations 2014. (ii) These Regulations shall come into force from the date of their publication in the Official Gazette ...
