Tax Amendments won't Hit Foreign Funds

Tax Amendments won’t Hit Foreign FundsAccording to Business Standard: Amid concern that amendments in the Income Tax Act proposed in Finance Bill, 2012, would hit foreign investment in the country, Finance Minister Pranab Mukherjee on 27th April 2012 allayed fears and said the amendments were clarificatory in nature and would not override the provisions in double taxation avoidance agreements.

In written reply to a question in the Lok Sabha, whether the government proposed to amend the Income Tax Act retrospectively so as to enable the tax authorities to scrutinize offshore mergers and acquisition deals, the finance minister said, “clarificatory amendments have been proposed in the Finance Bill, 2012, to state the legislative intent of certain provisions of the Income Tax Act, 1961, relating to offshore mergers and acquisitions”.

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