India signed the protocol amending the Double Taxation Avoidance Agreement (DTAA) with Mauritius. With reference this which of the following statements is/are correct?
India signed the protocol amending the Double Taxation Avoidance Agreement (DTAA) with Mauritius. With reference this which of the following statements is/are correct?
The correct option is C 1 only
P-Notes are instruments issued by registered foreign institutional investors to overseas investors. While the FPIs are registered with the Securities and Exchange Board of India (SEBI), the overseas investors investing in P-Notes are not registered with the market regulator, and thus their identity is not known to the authorities. P-notes is a separate decision, it is not linked to the treaty. There is no change in decision with regard to taxation of P-notes because of signing of the Mauritius treaty .
The government also said that shares acquired between April 1, 2017 and March 31, 2019 will attract capital gains tax at a 50% discount on the domestic tax rate — i.e., at 7.5% for listed equities and 20% for unlisted ones. The full tax impact of the protocol will fall on investments beginning April 1, 2019, when capital gains will attract tax at the full domestic rates of 15% and 40%. A firm based in Mauritius, if its total operational expenses in that country is less than Rs.27 lakh, will not be eligible for the 50 per cent reduction in tax rate on capital gains during the transitional two-year period.
It is a move in line with the government’s initiatives to curb black money in the system, money laundering and tax avoidance
1 only
P-Notes are instruments issued by registered foreign institutional investors to overseas investors. While the FPIs are registered with the Securities and Exchange Board of India (SEBI), the overseas investors investing in P-Notes are not registered with the market regulator, and thus their identity is not known to the authorities. P-notes is a separate decision, it is not linked to the treaty. There is no change in decision with regard to taxation of P-notes because of signing of the Mauritius treaty .
The government also said that shares acquired between April 1, 2017 and March 31, 2019 will attract capital gains tax at a 50% discount on the domestic tax rate — i.e., at 7.5% for listed equities and 20% for unlisted ones. The full tax impact of the protocol will fall on investments beginning April 1, 2019, when capital gains will attract tax at the full domestic rates of 15% and 40%. A firm based in Mauritius, if its total operational expenses in that country is less than Rs.27 lakh, will not be eligible for the 50 per cent reduction in tax rate on capital gains during the transitional two-year period.
It is a move in line with the government’s initiatives to curb black money in the system, money laundering and tax avoidance
