Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: list of goods taxed at 4% :: empanelment :: cpt :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: form 3cd :: Central Excise rule to resale the machines to a new company :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
Direct Tax »
 No change in gold seizure norms in proposed I-T Law amendments
 Direct tax collection will get a long-term boost, Franklin Templeton says
 I-T Act amendments upset calculations of cash hoarders
 Claim tax benefit on costs incurred to evict tenants
 The Integrated Goods And Services Tax Act, 2016
 Here’s what Income Tax Department did leading up to demonetisation
 I-T department asks IDS declarants to pay tax by November 30
 Cash trove tax drive dilemma
  CBDT halves Income Tax refunds issue timeline to 15 days for this fiscal
 CBDT signs four unilateral advance pricing agreements
 Central Board of Direct Taxes allowed Rs 4,500 crore of irregular benefits to infrastructure companies: CAG

New tax code may check hot money entry
June, 16th 2010

Foreign institutional investors will have to classify income from capital market transactions as capital gains and not as business income, the revised discussion paper of the Direct Tax Code (DTC) says.

This move would check hot money flow into Indian markets, say analysts.

The revised paper of the DTC has retained the clause directing foreign institutional investors to classify income from investments as capital gains and pay tax on it.

The majority of FIIs are reporting their income from such investments as capital gains. However, some of them are characterizing such income as business income and consequently claiming total exemption from taxation in the absence of a Permanent Establishment in India.

It is therefore, proposed that the income arising on purchase and sale of securities by an FII shall be deemed to be income chargeable under the head capital gains, the revised discussion paper said.

This would simplify the system of taxation, bring certainty, eliminate litigation and is easy to administer, the paper said. The capital gains arising to foreign institutional investors will not be subjected to TDS and they will be required to pay tax by way of advance tax on such gains.

The revised discussion paper is open for public comments till June 30. The Government hopes to introduce a Bill on the proposed DTC in the Monsoon session of Parliament.

Income earned by the appreciation or depreciation of an asset class cannot be classified as business income. It was therefore logical that this was classified as capital gains, said Mr J. Moses Harding, Head, Global Markets Group, IndusInd Bank.

This would definitely be a burden on the hot money investor'. With this, only investments that are strategic in intent would come in and all fleet-footed speculative trades would come down, he said.

This would result in stability of both capital inflows and reverse flows. For instance, the rupee fluctuated from 39 to the dollar to 52 and then to 48 through 44 in the recent past. Such instances would be minimised, he added.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions