Indian Government Releases Draft Tax Code
Oct. 13 – The Indian government has released its draft tax code for public consultation and comments, and is set to be passed into law when any applicable changes are made on April q, 2011.
Following consultation with academics, professionals and the public, the following areas of the code have been identified by the government as requiring additional discussion and examination:
- The concept of minimum alternative tax based on gross assets
- Capital gains tax in the case of non-residents
- Income tax and double tax avoidance agreements
- General anti-avoidance rules
- Effective management control and taxation of foreign companies in India
- Taxation of charitable enterprises
- Shift from exempt-exempt-exempt system to exempt-exempt-taxation system
These issues are to be further discussed by the Ministry of Finance with the public sector in moves that signal growing confidence in the public sector by the government and vice versa. We will keep readers updated on further developments in India’s draft tax code.