India Budget 2017 – Highlights

Global Tax Update:March 2017/India

The Indian Finance Minister presented the union budget 2017 (the Budget 2017/ the Budget) for the fiscal year 2017-18 on 1 February 2017. We have summarized a few key tax proposals of the Budget 2017 announced as of 1 February 2017 in this newsletter. (Global Tax Update:March 2017/India)

The amendments suggested later in March 2017 which were later on approved by the Parliament and assented by President of India have also been incorporated.

(1) Corporate tax rates
(2) BEPS Action 4 - Thin Capitalization Rules introduced
(3) Introduction of secondary adjustment in the Transfer Pricing regulations
(4) Specified domestic transfer pricing transactions
(5) Life of Minimum Alternate Tax (MAT) Credits and Alternate Minimum Tax (AMT) extended
(6) Income from transfer of carbon credits
(7) Clarity on applicability of indirect transfer provisions
(8) Concessional tax rate on interest in certain cases
(9) Extension of capital gains exemption to Rupee Denominated Bonds
(10) Conversion of preference shares to equity shares
(11) Retrospective amendment to extend the concessional rate for long term capital gains
(12) No exemption for Long term capital gain of listed equity shares
(13) Consideration for transfer of shares other than quoted shares
(14) Authority of Advanced Rulings (AAR)
(15) Restriction on cash transactions
(16) Procedural issues

>> Click for Japanese [インド2017年度予算案の概要]

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