India: Tax proposals in Union Budget 2018-19 | KPMG | GLOBAL

India: Tax proposals in Union Budget 2018-19

India: Tax proposals in Union Budget 2018-19

The Finance Minister on 1 February 2018 presented the Union Budget 2018-19. This is the first budget after the July 2017 implementation of India’s goods and services tax (GST).

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Concerning tax measures:

  • The budget does not propose tax changes specific to individual taxpayers. 
  • The budget would extend the benefit of a concessional corporate income tax rate of 25% to domestic companies with a turnover up to a ceiling of INR250 crore during FY 2017. 
  • To reduce economic distortions and to address erosion of the tax base, taxation of long-term capital gains would be re-introduced at a rate of 10% on gains in the equity market. The tax treatment of gains realized until 31 January 2018 would be “grandfathered.”
  • The government would continue in its efforts to align the domestic tax laws of India with the OECD’s base erosion and profit shifting (BEPS) action plans, including implementation of the MLI with respect to India’s network of income tax treaties.

 

Read a February 2018 report [PDF 1.46 MB] prepared by the KPMG member firm in India

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