May 9, 2012

India FM Pranav Mukherji rolls back so-called draconian provisions of Budget 2012-13

Finance Minister announced to roll back so-called draconian measure to implement provisions of GAAR (general anti avoidance rules) during the discussion in parliament on Finance Bill, 2012, on 7th May 2012. This came as a big relief for the market participants and especially p-notes and FIIs investing/trading on Indian exchanges via Mauritius. Markets recovered from more than 300 points losses on this announcements on Monday, however declined sharply 2% on Tuesday, undoing all the expected and deemed positive impacts of this announcement.
Below are the main highlights:
ü  GAAR provisions deferred for a year.
ü  Investment in start ups by angel investors exempted from tax.
ü  Goods already taxed by states to be exempted from service tax.
ü  Withdrawal of 1% levy on jewellery.
ü  1% TDS withdrawn on transfer of immovable property.
ü  Long term capital gains tax on PE investors cut to 10%.

Posted on Wednesday, May 09, 2012 | Categories: