Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: form 3cd :: cpt :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: VAT RATES :: ACCOUNTING STANDARD :: TDS :: list of goods taxed at 4%
 
 
« Direct Tax »
 Pune region tops in direct tax kitty growth
 RBI releases draft directions on hedging of commodity price
 Unexplained deposits in focus, taxmen ordered to go all out in the next three months
 Why India’s corporate tax rate should be cut
 Best ways to save tax under section 80C
 Govt may exceed direct tax collection target of FY18 Budget estimates
 CBDT relaxes MAT provisions for companies under corporate insolvency
 CBDT relaxes norms for MAT on firms facing insolvency
  Income-tax deduction from salaries during the financial year 2017-18 under section 192 of the Income-tax Act, 1961
 CBDT to appeal for revival of certain deregistered companies
 How the new tax regime fared in India these last 6 months

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 2018 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