Indian Union Budget 2016 – Continuing reforming

Continuing its course of encouraging foreign investment and as reaction to OECD’s BEPS plan, the Indian government announced at the annual Union Budget Day 2016 a number of reforms, especially addressing various pending tax issues and introducing new tax initiatives.

India increases foreign investment limits for foreign investors

The Indian government introduced changes to its Foreign Direct Investment Policy in order to stimulate foreign investment, especially in sectors such as construction, retail and defense by increasing sectoral caps, bringing more activities under automatic route and easing some of the conditions to encourage investment in certain sectors.

Is an Indian PAN still required?

An Indian Tax Tribunal has recently held that a taxpayer – making payments to recipients that did not have a PAN (Permanent Account Number) – correctly applied the withholding tax rate according to the double taxation treaties but not as per domestic law. However, PAN regulations are still in force.

Confidence and economic growth in India

On 28 February 2015, the new Government of India, represented by the Finance Minister, Mr. Arun Jaitley, announced its first full year budget 2015. While there does not seem to be any major changes on the direct tax front, the focus of the budget is to provide confidence in the tax system and to inspire economic growth.

India Union Budget 2014 – Aiming to reduce litigation

On 10 July 2014, the new Government of India, represented by the Finance Minister, Mr. Arun Jaitley, announced the Union Budget 2014. While there were no major announcements, the budget’s focus is to provide more tax certainty and to reduce litigation.

Companies Act on CSR

The new law regulating companies (Companies Act) in India has been enacted and the Corporate Social Responsibility (CSR) rules have been notified, which shall be effective as of 1 April 2014.
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