Developers The union budget provided a significant boost for affordable housing, by granting it an industry status and all the listed real estate stocks reacted positively. However, whether these incentives will entice the developers R
Siddharth Chopra, a resident of Mumbai, was glued to the television news channels, during the live telecast of the Union Budget 2017-18. Like many, he was expecting a bonanza for middle-class affordable home buyers. R
Post demonetisation, the real estate industry expects the government to initiate measures that boost â€˜consumption‘, during the upcoming budget. The challenge for the government, is to grow the economy while maintaining fiscal prudence. A R
In the 2016-17 union budget, the government introduced several measures to boost affordable housing. Among the significant ones, it provided 100% tax exemption on profits, for developers building homes up to 30 sq meters R
Finance Minister Arun Jaitley, who heard the industry in his customary pre-budget meeting, asked them to step up investment.
The government in June last year constituted a Committee under retired Indian Revenue Service officer M P Lohia, to suggest the framework for computation of book profit for the purposes of levy of MAT for Indian Accounting Standards (Ind AS) compliant companies.
Besides, the ministry has taken up issues such as permitting SEZ units to perform job works for units in domestic tariff area (DTA) and allowing exports from SEZs to DTA at the duty rates as given to India's free trade agreement partners, said Additional Secretary in the Department of Commerce Alok Vardhan Chaturvedi.
In the Budget, the Finance Minister said that the income tax benefits benefit new SEZ units will be available to those units which commence activity before March 31, 2020.
There were several expectations from the capital market sector,such as replacement of Dividend Distribution Tax (DDT) with tax withholding in the hands of shareholders and relaxation of disallowance of expenses in relation to the earning of exempt income.
The Dispute Resolution Panel (DRP) has directed withdrawal of the MAT levy on FPIsbringing cheer at the turn of the year. This is a clear indication of the Government‘s resolve in implementing a stable and predictable tax regime for the FPIs - in which investors typically churn over time and the tax cost is factored on daily basis.
The switch to Indian Accounting Standards (Ind AS) will impact companies the most in financial services, retail and pharma sectors even as half of the firms polled are yet to plan for the new standard which kicks-off from April 1, says a survey.
Export Promotion Council for EOUs and SEZs (EPCES) said that imposition of Minimum Alternate Tax (MAT) has adversely impacted the growth of SEZs.
By: Sakya Singha Chaudhuri & Avijeet Lala, HAS Advocates
Earlier this month, the government had exempted foreign institutional and portfolio investors from payment of MAT on the capital gains made by them before April 1, 2015.
The decision in the case assumes significance with the government announcing its decision to amend the Income Tax Act to exempt foreign portfolio investors (FPIs) and foreign companies from MAT.
No MAT on Foreign Companies?
Earlier in the day, the government said that Income-Tax Act will be amended with retrospective effect to exempt overseas companies which do not have a permanent establishment in India from paying minimum alternate tax (MAT).
The government further said it would carry out an appropriate amendment to the Income Tax Act in this regard.
In a circular released by the Central Board of Direct Taxes (CBDT), the government authority has directed its officials not to pursue any pending MAT cases.
The Finance Ministry, according to sources, is also likely to come out with requisite amendments to the Income Tax Act in the next Budget in February to clarify that MAT will not apply to FIIs for periods prior to April 1, 2015.
The Shah panel had submitted its 66-page report to the Government on July 24 and its analysis is crucial for the government to firm up its stance on the Castleton case.
Initially scheduled for Tuesday, the hearing will now be held on Sept. 29, the lawyer said, declining to be identified discussing court matters.
While AP Shah refrained from disclosing any content of the report, he said the report was a unanimous view and the government will now examine and take an appropriate decision on the same.
The report is of high importance as the Castleton Case is due for hearing in the Supreme Court on August 4.
It has been one of the most eagerly awaited reports, in recent history. Justice AP Shah Committee is ready with its final report on the minimum alternate tax (MAT) issue.