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Key changes to tax proposals proposed in Finance Bill, 2016

Global Tax Update:June 2016/India

The Indian Parliament passed the Finance Bill, 2016 (“the Bill”) after making certain amendments to the tax proposals provided in the Bill (as presented by the Finance Minister on February 29, 2016 and detailed in our March 2016 edition of Global tax Update - “India Budget 2016 - Highlights”). The amended bill has also been assented to by the President of India and has become law. (Global Tax Update:June 2016/India)

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1. Key changes to tax proposals proposed in Finance Bill, 2016

The Indian Parliament passed the Finance Bill, 2016 (“the Bill”) after making certain amendments to the tax proposals provided in the Bill (as presented by the Finance Minister on February 29, 2016 and detailed in our March 2016 edition of Global tax Update - “India Budget 2016 - Highlights”). The amended bill has also been assented to by the President of India and has become law.

2. CBDT directs tax officers to treat income from transfer of unlisted securities as ‘Capital Gains’

In order to bring in uniformity in the tax treatment by the taxpayers and with a view to avoid disputes/ litigation, CBDT has directed the tax officers to treat income from sale of unlisted shares as ‘Capital Gains’, as against ‘Business Income’, irrespective of period of holding, except in circumstances where the tax officer would examine the issue and take appropriate view.

3. Government of India and Mauritius release Protocol amending the Double Taxation Avoidance Agreement (DTAA) between India and Mauritius

The Government of India and Mauritius, on May 10, 2016, amended the tax treaty between the two countries.
 

 

>> Click for Japanese [2016年インド財政法における税制改正案の主な修正点 ほか]

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