The meeting of Monetary Policy Committee scheduled on April 5 and 6 will be closely watched by the Street. Majority expect status quo this time despite encouraging retail inflation data.
To boost capital investment in manufacturing sector in future, it is expected that the existing benefit for additional deduction of 15 percent in respect of acquisition and installation of new plant and machinery to be extended for investments beyond March 31, 2017
The law for determining tax residency for foreign companies by way of their POEM has been in force since April last year.
Foreign investors have pulled out a little over Rs 5,600 crore from the Indian capital market so far this month, concerned about "lower prospects" of economic growth compared with other emerging markets.
The Nifty has witnessed a breath-taking rally over the past one month, the fate of which may be decided this week when the Union Budget is presented on Wednesday (February 1).
Industry body Assocham termed as a "positive development" the Central Board of Direct Taxes (CBDT) assertion that General Anti-Avoidance Rules (GAAR) would be applicable from April 2017.
The sharp run-up of almost 8 percent in the broad indices in the month preceding the Budget suggests that the market is expecting the moon, however, it takes just one announcement from Jaitley to pour cold water over such high hopes.
Grandfathering as per I-T rules will be available to Compulsorily Convertible Instruments (CCI), bonus/split issue. Grandfathering will also apply to investments made prior to April 1, 2017.
While Prime Minister Narendra Modi's administration is widely seen as being friendly to businesses and investors, it not expected to announce any dramatic moves at a time when the economy is under pressure from a cash squeeze.
The government should double the basic I-T exemption limit to Rs 5 lakh per year and continue with incentives and deductions to corporate houses for stimulating consumption demand and propel private investment post demonetisation, according to an EY survey.
Foreign investors have pulled out over Rs 5,100 crore from the Indian capital market so far this month over concerns regarding "lower prospects" of economic growth as compared to other emerging markets.
Speaking to CNBC-TV18, Ketan Dalal, Senior Tax Partner at PwC India, said while the general anti-avoidance rule should not be feared as people are already familiar with the contours of it, its implementation needs to monitored closely.
Govt unlikely to change GAAR‘s implementation date; amended CBDT rules have â€œgrandfatheredâ€ investments made before April 1, 2017 exempting these from the anti-avoidance rule
One can expect the government to announce a marginal cut to the headline corporate tax rate along with a clear roadmap detailing the manner in which the proposed reduction and incentive phase out will be achieved.
Tax anti-avoidance rule GAAR will kick in from April 1, 2017, the tax department said today.
General Anti-Avoidance Rule (GAAR), which will kick in from April 1 next year, contains provisions to prospectively tax overseas deals involving local assets and are aimed at minimising tax avoidance and evasion by entities based in tax havens.
In stock specific action, banks, auto, IT and metals lead the market rally. ICICI Bank, Asian Paints, SBI and TCS were major gainers in the Sensex.
Experts feel instruments such as participatory notes, which allow foreign investors to skip registration with Sebi to invest in India, may take a hit and that the regular route of investments was too cumbersome for FIIs
The changes in the taxation agreement between India and Mauritius will result in a more stable and transparent tax regime and is "long-term positive" for investors, says a report by Kotak Institutional Equities.
After the government tightened the Double Tax Avoidance Agreement with Mauritius, Singapore may next be on the anvil.
Hindalco, Axis Bank, NTPC, Maruti and Tata Steel are top gainers in the Sensex. Among the losers are Dr Reddy's Labs, Adani Ports, ONGC, Coal India and SBI are losers in the Sensex.
The amendment made the government to tweak its tax treaty with Mauritius may be well-intentioned but it could hamper foreign investors' access to the Indian markets, says Arvind Sanger of New York-based Geosphere Capital.
Direct tax proposals from the Finance Minister did not seem to be major game changer
Backdrop of the amendment in 2012 was to cover large and strategic transactions which could result in change in control and management of Indian companies but cannot be taxed as they do not have direct nexus with India.