$42 billion wiped off Indian stocks as doubts on tax linger
5 years, 6 months ago

$42 billion wiped off Indian stocks as doubts on tax linger

Live Mint  

It’s an old saw of India’s budget documents -- the devil lies in details of the fine print. “An investment vehicle -- such as a category III alternative investment or an FPI -- taxed at a fund level is likely to get affected as the income may easily exceed 50 million rupees,” said Vaibhav Sanghavi, co-chief executive officer at Avendus Capital PBC Markets Alternate Strategies LLP in Mumbai. Foreigners and alternative investment funds can opt to convert their trust structure into a corporate entity to avail of a lower tax rate available to such category, BloombergQuint reported Wednesday, citing Central Board of Direct Taxes Chairman P.C. Besides, global funds also look for stability in tax rates while assessing an investment destination, he said. “The clarification from the government isn’t encouraging and India should relook at FPI taxation not only from the market angle, but also from the perspective of stability,” Sekar said.

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History of this topic

Tax breaks, reforms, and returns: Why NRIs are banking big on India
1 month, 2 weeks ago

Tax breaks, reforms, and returns: Why NRIs are banking big on India

Live Mint  

India is cementing its reputation as a prime destination for global investors, with inflows into NRI deposit schemes surging to $7.8 billion between April and August this year—more than double the figure from the same period last year. By refining tax rules, increasing transparency, and aligning with global trends, the reforms position India as an attractive and efficient investment destination …

India is investing more in mutual fund SIPs, and paying more tax too
1 month, 4 weeks ago

India is investing more in mutual fund SIPs, and paying more tax too

Firstpost  

With individual wealth creation through investments aligning with strengthened government revenues, India appears resilient in the face of global uncertainties Investments in mutual funds,a s well as tax collection in India have gone up. New records for SIPs In October 2024, investments through monthly systematic investment plans into mutual funds surpassed Rs 25,000 crore for the first time and reached …

Budget 2024 Capital Gains taxation: Corporate tax for foreign companies slashed to 35%, charities, cruise operations taxation revised
5 months, 2 weeks ago

Budget 2024 Capital Gains taxation: Corporate tax for foreign companies slashed to 35%, charities, cruise operations taxation revised

The Hindu  

Simplifying the tax regime for corporate industries, Union Finance Nirmala Sitharaman on Tuesday, proposed new tax structures for charities, foreign shipping companies, rationalisation of capital gains in her 2024 Budget speech. Ms. Sitharaman’s speech lasted just shy of ninety minutes “58% of corporate tax came from the simplified tax regime in 2022-23 and more than 2/3rd of taxpayers have used …

Budget 2024: Will Nirmala Sitharaman bring cheer to middle-class with income tax changes?
5 months, 3 weeks ago

Budget 2024: Will Nirmala Sitharaman bring cheer to middle-class with income tax changes?

Hindustan Times  

The Union Budget 2024 could provide Income Tax relief for low earners looms large amid rising prices in the country. Experts believe that a reduction in Income Tax could address economic challenges in the country as Finance Minister Nirmala Sitharaman is set to present the Union Budget for the fiscal year 2024-25 on July 23. This change would boost consumption, …

Budget 2024: 6 key changes taxpayers want from FM Sitharaman
11 months, 1 week ago

Budget 2024: 6 key changes taxpayers want from FM Sitharaman

India Today  

Finance Minister Nirmala Sitharaman is set to present the Interim Budget 2024-25 on February 1, covering the initial three months of the next fiscal year. While hopes for a new 25 per cent high-income tax slab are slim, expectations include increased basic exemption, standard deduction, and higher limits for 80C & 80D," Ravi said. NPS deduction under new tax regime …

Budget 2023: How Nirmala Sitharaman attempted to simplify tax experience
1 year, 11 months ago

Budget 2023: How Nirmala Sitharaman attempted to simplify tax experience

Live Mint  

The Hon’ble Finance Minister presented today the last full-fledged Budget 2023 under the Modi 2.0 Government. Further, with the proposals, it is apparent that the Government wants to simplify the tax experience to its taxpayers by proposing a common tax return form, bringing reforms to litigation and also giving prominence to the new tax regime which does not require the …

Most Indians want tax on the rich, top firms
2 years, 11 months ago

Most Indians want tax on the rich, top firms

Deccan Chronicle  

Chennai: More than 80 per cent of Indians support a tax on the rich and corporations who earned record profits during the pandemic, a nationwide survey conducted ahead of the Budget by Fight Inequality Alliance India said. The study had said that an annual wealth tax in India would raise $78.3 billion a year with a 2 per cent tax …

G7’s tax proposals
3 years, 7 months ago

G7’s tax proposals

Live Mint  

Finance ministers of rich G7 nations on Saturday reached a historic agreement to push for a global floor of 15% corporate tax so that no jurisdiction dangles a lower rate as bait for investment, and, as US treasury secretary Janet Yellen put it, a race to the bottom among tax regimes comes to an end. The G7 pact also envisages …

5% tax on foreign tour, investments and study abroad from today: Details here
4 years, 3 months ago

5% tax on foreign tour, investments and study abroad from today: Details here

Live Mint  

Authorised dealers, typically banks and remittance companies will collect 5% tax at source once LRS remittance made by an individual crosses 7 lakh in a financial year. For the current financial year, any remittances made post March 2020 will count towards the 7 lakh threshold. Viram Shah explains, "If you have transferred ₹6 lakh before October and you transfer additional …

Taxation of dividends, back to classical system
4 years, 10 months ago

Taxation of dividends, back to classical system

Live Mint  

It’s almost a month since the Union budget was presented and by now taxpayers and other stakeholders have gone through the fine print to understand the implications of various announcements. One such budget announcement which has brought relief to taxpayers is the proposal to abolish the dividend distribution tax payable by Indian companies and restoring the classical system of taxing …

Budget 2020 | No more double taxation on dividends
4 years, 11 months ago

Budget 2020 | No more double taxation on dividends

The Hindu  

The government fulfilled a long-standing demand of the capital markets when it proposed scrapping the dividend distribution tax that is levied on companies. “It has been argued that the system of levying DDT results in increase in tax burden for investors and especially those who are liable to pay tax less than the rate of DDT if the dividend income …

Budget 2020: Income tax slabs lowered for those who forgo exemptions
4 years, 11 months ago

Budget 2020: Income tax slabs lowered for those who forgo exemptions

The Hindu  

In a proposal to simplify the personal income tax regime, Finance Minister Nirmala Sitharaman, in the Union Budget 2020 speech, said the income tax rates would be “significantly reduced” for those who forgo reliefs and exemptions and the new rates would be optional. Accordingly, a person earning Rs 15 lakh per anum and not availing any deductions will pay ₹1.95 …

Budget 2020: BJP recommends tax tweaks to attract foreign investors
4 years, 11 months ago

Budget 2020: BJP recommends tax tweaks to attract foreign investors

India TV News  

The Bharatiya Janata Party has recommended adjusting rules on taxing equity market returns in the upcoming budget, news agency Reuters reported on Wednesday. During pre-budget consultations with Sitharaman and the Prime Minister's Office, the BJP leaders urged the government to consider industry demands and listed measures to revive investments. "There is a concern on LTCG and DDT.as a lot of …

Govt plans rejig in personal tax slabs to boost spending
5 years, 3 months ago

Govt plans rejig in personal tax slabs to boost spending

Hindustan Times  

The government is considering rationalising personal income tax rates in a move that will result in the increase of disposable incomes, especially among the middle class, and hopefully drive consumption and, therefore, growth, two government officials said on condition of anonymity. Government officials have been working on simplifying archaic income-tax laws and rationalising tax rates in line with recommendations of …

Corporate tax cut makes India attractive destination for investment: Guv Das
5 years, 3 months ago

Corporate tax cut makes India attractive destination for investment: Guv Das

Live Mint  

Describing the government's move to slash corporate tax rate as a bold measure, RBI Governor Shaktikanta Das on Tuesday said it has made India a very attractive destination for foreign investment. In the biggest reduction in 28 years, the government on Friday cut corporate tax rate by almost 10 percentage points as it looked to pull the economy out of …

Corporate tax cut makes India an investment destination; to attract foreign firms to set up units: Nirmala Sitharaman
5 years, 3 months ago

Corporate tax cut makes India an investment destination; to attract foreign firms to set up units: Nirmala Sitharaman

Firstpost  

Quoting experts, Nirmala Sitharaman said India is now much better than China in terms of rate, transparency, and tax administration New Delhi: India has become a highly competitive investment destination post-corporate tax reduction as the rates are now lower than that in China and most Southeast Asian countries, Finance Minister Nirmala Sitharaman said on Sunday. India was earlier at disadvantage …

Industry, stock market experts term Sitharaman's corporate tax cut 'revolutionary', say will make Indian firms globally competitive
5 years, 3 months ago

Industry, stock market experts term Sitharaman's corporate tax cut 'revolutionary', say will make Indian firms globally competitive

Firstpost  

India has finally become tax competitive. Welcoming the move, Frank D’Souza Partner and Leader Corporate and International Tax, PwC India said, “the reduction in the corporate tax rate is a welcome move and makes India attractive for new investments. G Radhakrishna, Chairman and Managing Director of RKEC Projects The announcement of reduction in corporate tax rate is really a big …

The Hindu Explains | What corporate tax cut means for the Indian economy
5 years, 3 months ago

The Hindu Explains | What corporate tax cut means for the Indian economy

The Hindu  

In its boldest gambit yet to stir up the economy, the government on Friday issued an ordinance to reduce the corporate tax rate for domestic firms and new manufacturing units by 10 to 12 percentage points, effectively bringing India’s tax rates on par with its competing Asian peers. The story so far: Finance Minister Nirmala Sitharaman on Friday, among other …

Corporate tax reliefs to spur growth, create jobs: India Inc
5 years, 3 months ago

Corporate tax reliefs to spur growth, create jobs: India Inc

The Quint  

Bengaluru, Sep 20 The series of tax reliefs Union Finance Minister Nirmala Sitharaman announced in New Delhi on Friday would revive the economy, boost investment, spur growth and create jobs, said India Inc honchos across the sectors. "The corporate tax relief measures are a concrete step to stabilise the economy, boost investment, spur growth and create jobs in key sectors," …

Rupee rallies 40 paise to close at 70.94 after Nirmala Sitharaman's announcement on corporate tax cut
5 years, 3 months ago

Rupee rallies 40 paise to close at 70.94 after Nirmala Sitharaman's announcement on corporate tax cut

Firstpost  

Mumbai: The Indian rupee on Friday rose by 40 paise to settle at 70.94 to the US dollar after forex market sentiment was buoyed by the government decision to slash corporate taxes. Finance Minister Nirmala Sitharaman slashed corporate tax by almost 10 percentage points as the government looked to pull the economic growth out of six-year low. “Indian rupee shines …

India Inc. double cheers govt's Rs 1.45L cr stimulus
5 years, 3 months ago

India Inc. double cheers govt's Rs 1.45L cr stimulus

India TV News  

India Inc. on Friday double cheered the government's Rs 1,45,000 crore stimulus, which includes slashing corporate tax to 22 per cent for domestic companies, lower tax of 15 per cent for new manufacturing firms and measures to boost the capital market. "We welcome the Finance Minister's proposition of slashing corporate tax, scrapping surcharge on buyback announced before July 5 and …

Nirmala Sitharaman announces corporate tax cut; other key highlights of announcements
5 years, 3 months ago

Nirmala Sitharaman announces corporate tax cut; other key highlights of announcements

Firstpost  

The government on Friday slashed the income tax rate for companies by almost 10 percentage points to 25.17 percent and offered a lower rate to 17.01 percent for new manufacturing firms to boost economic growth rate from a six-year low by incentivising investments to help create jobs In a surprise move, the government on Friday slashed the income tax rate …

Reduction in corporation tax rate welcome, doubtful whether investment will revive: Jairam Ramesh
5 years, 3 months ago

Reduction in corporation tax rate welcome, doubtful whether investment will revive: Jairam Ramesh

India TV News  

Congress leader Jairam Ramesh on Friday welcomed the reduction in corporate tax rate but expressed doubts on whether the step will revive investment. The government's move, he said, does nothing to dispel the fear that pervades India Inc. "A headline-itis afflicted, panic-stricken Modi Sarkar has cut corporate tax rates less than 3 months after a Budget and 4 months before …

7 key takeaways from Nirmala Sitharaman's just announced new taxation laws
5 years, 3 months ago

7 key takeaways from Nirmala Sitharaman's just announced new taxation laws

India TV News  

Friday brought the much-awaited news for the manufacturing sector and corporates in India. In a bit to give the slowing economy a stimulus, Finance Minister Nirmala Sitharaman announced that the government has brought in the Taxation Laws Ordinance 2019 to make certain amendments in the Income-tax Act 1961 and the Finance Act 2019. Indiatvnews.com brings to you 7 major announcements …

Government mulling another booster dose to reinvigorate economy
5 years, 3 months ago

Government mulling another booster dose to reinvigorate economy

India TV News  

The finance ministry is working on one more booster dose to give a leg-up to the economy that has hit over six-year low of 5 per cent, a senior finance ministry official said. The government announced a slew of measures in three dosages which include a special window for real estate, export incentives, bank consolidation and sops for micro, small …

Government clarifies on FPI, experts say benefits limited
5 years, 4 months ago

Government clarifies on FPI, experts say benefits limited

India TV News  

Soon after Finance Minister Nirmala Sitharaman announced to roll back higher surcharge on foreign and domestic portfolio investors, the Income Tax department on Saturday clarified that the tax payable at normal rate on the business income from the transfer of derivatives to a person other than Foreign Portfolio Investments will be liable for the enhanced surcharge. "The derivatives are not …

Higher surcharge on gains from equity withdrawn for foreign, domestic investors
5 years, 4 months ago

Higher surcharge on gains from equity withdrawn for foreign, domestic investors

Live Mint  

New Delhi: Finance minister Nirmala Sitharaman on Friday announced the government’s decision to scrap the increase in surcharge on the income tax outgo for both domestic as well as foreign investors that came into effect as part of the second full year budget of 2019. “In order to encourage investment in the capital market, it has been decided to withdraw …

Big relief for markets as Nirmala Sitharaman rolls back tax surcharge on FPIs
5 years, 4 months ago

Big relief for markets as Nirmala Sitharaman rolls back tax surcharge on FPIs

India TV News  

Addressing a press conference, Finance Minister Nirmala Sitharaman Friday announced the rollback of the controversial tax surcharge on the Foreign Portfolio Investment, which was announced in the Budget last month. "The enhanced surcharge levied by Finance Act, 2019 on long and short term capital gains tax is being withdrawn," Sitharaman said during a special media briefing. Speaking on the US-China …

Govt considers exempting foreign investors from super-rich tax: Report
5 years, 4 months ago

Govt considers exempting foreign investors from super-rich tax: Report

Live Mint  

The government may withdraw the higher tax surcharge on foreign portfolio investors, Bloomberg reported, citing an unnamed government official. Finance Minister Nirmala Sitharaman will hold a press briefing at 5 pm today, a government spokesman said, amid expectations that the government would announce steps to revive economic growth. Indian markets are down about 10% from their June highs after Finance …

Govt's tax rise for high earners may trigger fund flight: Former RBI governor Bimal Jalan
5 years, 5 months ago

Govt's tax rise for high earners may trigger fund flight: Former RBI governor Bimal Jalan

Firstpost  

Former Reserve Bank of India governor, Bimal Jalan, has warned that the higher income taxes the government introduced in its budget could lead to a flight of funds from the country New Delhi: Former Reserve Bank of India governor, Bimal Jalan, has warned that the higher income taxes the government introduced in its budget could lead to a flight of …

Why super-rich sulking over super-hike in tax rates is bunkum; someone ought to foot the bill anyway
5 years, 5 months ago

Why super-rich sulking over super-hike in tax rates is bunkum; someone ought to foot the bill anyway

Firstpost  

The higher tax charges will apply to individuals and domestic investors in the said income brackets as well. Whatever social welfare schemes followed in the next five years and into the second term—free pension to small traders/farmers, free universal healthcare, endless farm loan waivers, and interest-free credit—confirmed this approach. Increased burden of social sector spending and low revenue inflows left …

Explainer: Will taxing the super rich affect foreign investment inflows?
5 years, 5 months ago

Explainer: Will taxing the super rich affect foreign investment inflows?

India Today  

The government’s budget proposal earlier this month to increase taxes on those with annual incomes of more than Rs 2 crore has rattled many foreign portfolio investors. The realisation that the new tax likely applies to the trusts through which many foreign investors put money into Indian financial markets sent stocks plunging last week. The surcharge increases the effective tax …

No targeting of FPIs; higher tax on all super-rich including Indian residents: Finance Minister
5 years, 6 months ago

No targeting of FPIs; higher tax on all super-rich including Indian residents: Finance Minister

India TV News  

Amid a backlash from foreign portfolio investors over the new tax, the government on Tuesday said it is not targeting FPIs by raising tax on super-rich individuals, and foreign investors have an option to convert into a corporate entity to avail of lower rates available to such category. However, some 40 per cent of the FPIs automatically come under the …

No targeting of FPIs, higher tax on all super-rich, says government
5 years, 6 months ago

No targeting of FPIs, higher tax on all super-rich, says government

Live Mint  

New Delhi: Amid a backlash from foreign portfolio investors over the new tax, the government on Tuesday said it is not targeting FPIs by raising tax on super-rich individuals, and foreign investors have an option to convert into a corporate entity to avail of lower rates available to such category. For an individual earning total income of more than ₹5 …

₹2.3 tn wiped off BSE Sensex over past 3 sessions as tax clarity elude market
5 years, 6 months ago

₹2.3 tn wiped off BSE Sensex over past 3 sessions as tax clarity elude market

Live Mint  

Mumbai: It’s an old saw of India’s budget documents — the devil lies in details of the fine print. A higher surcharge on wealthy Indians in the budget has spooked non-resident and overseas funds enough to erase ₹2.3 trillion in market value from companies in the S&P BSE Sensex over the past three sessions. The proposal “seems to have inadvertently” …

Super-rich tax lacks teeth: Special treatment for dividend, capital gains take away its sting
5 years, 6 months ago

Super-rich tax lacks teeth: Special treatment for dividend, capital gains take away its sting

Firstpost  

Finance Minister Nirmala Sitharaman has steeply hiked the wealthy with a super-rich tax in Union Budget 2019. For the assessment year 2018-19, income tax for individual taxpayers has been increased by a surcharge of 10 percent if income exceeds Rs 50 lakhs but does not exceed Rs 1 crore. The company that is declaring a dividend has to pay 15 …

Highest personal I-T rate in India still lower than in China, US, South Africa
5 years, 6 months ago

Highest personal I-T rate in India still lower than in China, US, South Africa

India TV News  

Justifying raising of tax incidence on the super-rich, the finance ministry said the highest tax rate in India was still lower than many countries, including the US and China, and it was a worldwide phenomenon to ask the super-rich to pay extra tax. Revenue Secretary Ajay Bhushan Pandey sought to justify the Budget proposal to increase the surcharge on super-rich …

Opinion | Budget’s lack of urgency to fix growth problems is a worry for markets
5 years, 6 months ago

Opinion | Budget’s lack of urgency to fix growth problems is a worry for markets

Live Mint  

Indian stocks trade at a premium of about 45% compared to emerging market peers, which means investors are banking on big reforms to drive the high earnings growth expectations they have from Indian companies. These high net worth individuals are large investors, and the high increase in taxation in their case will naturally result in lower investments, which is a …

Budget 2019: Surcharge rate on income tax increased for super-rich
5 years, 6 months ago

Budget 2019: Surcharge rate on income tax increased for super-rich

Live Mint  

Super-rich will have to contribute more towards tax collection. So in total there will be four surcharge slab and rates, beside the above mentioned two new rates, the existing rates are—10% for those with total income between ₹50 lakh and ₹1 crore, 15% for those with taxable income between ₹1 crore and ₹2 crore. Current highest rate of applicable income …

Petrol and Diesel Budget 2019: Nirmala Sitharaman hikes fuel tax, levies additional surcharge on super rich to spur growth
5 years, 6 months ago

Petrol and Diesel Budget 2019: Nirmala Sitharaman hikes fuel tax, levies additional surcharge on super rich to spur growth

Firstpost  

New Delhi: Finance Minister Nirmala Sitharaman Friday hiked tax on petrol and diesel, raised import duty on gold, levied an additional surcharge on super rich and brought a tax on high-value cash withdrawals as she sought to spur growth with a reduction in corporate tax and sops to the housing sector, startups and electric vehicles. Presenting the maiden budget of …

Effective income tax rate goes up for super-rich. Details here
5 years, 6 months ago

Effective income tax rate goes up for super-rich. Details here

Live Mint  

Finance Minister Nirmala Sitharaman today presented the first Budget of the Modi 2.0 government. According to the Budget proposals, income tax surcharge on individuals having taxable income above ₹2 crore will have to pay higher surcharge, thus leading to higher effective tax rate for them. Earlier, tax payers with taxable income between ₹50 lakh and ₹1 crore lakh had to …

Tax no more
5 years, 6 months ago

Tax no more

India Today  

Winston Churchill had prophetically remarked: "For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle." Those earning less than Rs 5 lakh a year pay no taxes while those in the income range of Rs 5-10 lakh pay 20 per cent tax, plus …

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