India: Proposed amendments to Finance Bill, 2016

India: Proposed amendments to Finance Bill, 2016

Amendments to the Finance Bill, 2016—as introduced in the Lok Sabha in February 2016—were tabled on 5 May 2016.

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Among the amendments are provisions concerning:

  • The concessional tax rate benefit of 25% for certain domestic companies engaged in manufacturing or production operations
  • Unlisted shares held for 24 months or less to be treated as short-term capital asset
  • An additional 10% levy on dividends exceeding KR 10 lakh
  • Relief for certain non-residents from tax withholding (deduction) at source
  • Withdrawals from recognized provident funds and superannuation funds
  • Profit-linked deduction of 100% for start-ups also extended to limited liability partnerships (LLPs)
  • No securities transfer tax or commodities transfer tax for transfers paid in foreign currency
  • Amortization of spectrum fees
  • Profit-linked deductions of 100% for affordable housing projects
  • Tax at a rate of 10% on royalty income from patents that are developed and registered in India
  • Reduced rate of minimum alternative tax (MAT) for certain taxpayers
  • New penalty provisions for under-reporting of income

 

Read a May 2016 report [PDF 325 KB] prepared by the KPMG member firm in India: Proposed amendments to the Finance Bill, 2016

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