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Govt reviewing tax rules on savings, capital gains
November, 05th 2009

The government is debating the need for changes in its tax laws including that on saving schemes, capital gains of non-residents and tax agreements with various nations, the finance ministry said in a statement on Thursday.

The tax authorities are also considering changes in rules on the Minimum Alternate Tax (MAT) based on gross assets, taxation of foreign companies operating in India, charitable firms and house property, it said.

The government is also considering scraping exemptions on saving schemes and taxing them at the time of withdrawal.

Finance Minister Pranab Mukherjee briefed a newly set-up law-maker's panel on Wednesday on a Direct Tax Code that was put up for public debate in August.

The code proposed sweeping changes in tax laws and rates.

"On the basis of interactions with the stakeholders, government has identified nine critical areas for further detailed examination," said the statement quoting the minister.

 
 
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