Mukherjee said that retrospective amendments to the Income
May, 08th 2012
Tax Act will not be used to reopen cases where assessment orders have already been finalised. "I have asked the Central Board of Direct taxes to issue a policy circular to clearly state this position after passage of the Finance Bill," he said. The government had earlier said that under the Income Act, the revenue department cannot reopen cases of beyond six years.
The Minister also announced that long term capital gains tax for private equity investors, domestic and foreign, will be halved to 10 per cent as is applicable for Foreign Institutional Investors (FIIs). Earlier, it was 20 per cent. In order to provide depth to the capital markets through listing of companies, the Minister proposed to extend the benefit of tax exemption on long term capital gains to the sale of unlisted securities in an initial public offer. "I propose to provide the levy of Securities Transaction Tax (STT) at the rate of 0.2 per cent on such sale of unlisted securities," he said. As regards the levy one per cent Tax Deduction at Source (TDS) on transferee of immovable property (other than agricultural land),
Mukherjee announced withdrawal of the budget proposal in view representation received from different stakeholders that the move would enhance compliance burden. On the controversial and harsh proposal of making certain offences under the customs and central excise laws as cognisable and non-bailable, the Minister said, "In response to concerns expressed by members that the proposal regarding grant of bail only after hearing the public prosecutor is too harsh, I propose to omit this provision entirely. "In addition, only serious offences under the customs law involving prohibited goods or duty evasion exceeding Rs 50 lakh, shall be cognisable. However, all these offences shall be bailable," he said.