Asset Management Alert: India proposes legislative tax amendments

March 2012
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Asset Management Alert: India proposes legislative tax amendments

At a glance

India proposed legislative amendments to its income tax law that include the introduction of general anti-avoidance rules and provisions to retroactively tax indirect transfer of shares of overseas entities with substantial underlying Indian asset value.

India recently proposed certain legislative amendments to the existing income-tax law. These amendments were presented in Indian Parliament as part of the Annual Budget on March 16, 2012. Some key amendments include the introduction of general anti-avoidance rules and provisions to retroactively tax indirect transfer of shares of overseas entities with substantial underlying Indian asset value.

The changes will be enacted in the current tax law once the budget is passed by both Houses of Parliament and receives Presidential assent.

Click here for a summary of the key amendments proposed in the budget, which are likely to the impact the financial services industry including hedge funds and private equity funds.