Read more about Budget sops may spur up to 10% Mauritius funds to relocate to IFSC on Business Standard. Experts say while global funds may want to consider shifting their India portfolios to IFSC, the move would result in splitting the fund into two, which may not be acceptable to investors
Privatisation, FPI investment in REITs, InvITs: How Budget 2021 will impact financial services sector
By Sunil Gidwani
Several major changes and announcements made in the Budget proposals were actually anticipated and in fact widely expected by the financial service sector which has been severely impacted and has been under stress during last few years. Major announcements relate to Banking sector, insurance sector, IFSC and asset monetizing vehicles and investing institutions like REITS, InVITs and Infra funds.
One clear favourite is the IFSC. Several pathbreaking and speedy changes to framework for IFSC in the GIFT city in Gandhinagar in the last two years have already improved IFSC s rankings among global fund jurisdictions. Several sweeping changes are now proposed by the Finance minister to provide a major thrust to the IFSC.
Doubts over residency status remain.
Satya Sontanam
BL Research Bureau |
Updated on
February 01, 2021
.but there are enough reasons to cheer
Determining the residential status of a taxpayer for each assessment year is essential as the taxability and disclosure requirements for a taxpayer’s foreign income and assets depend on the residency status.
In case of residents, their Indian as well as foreign income will be taxable in India. The reporting and compliance requirements are also tougher for residents. For instance, residents have to report in their tax returns, their foreign assets and income earned from such assets. So, for an individual, it is beneficial to be categorised as an non-resident (NR)/not ordinarily resident (NOR) rather than as a resident under the Indian tax laws, if one could do so.
Tax ombudsman on the cards: Will it have adequate teeth?
Survey hints at reintroduction of the independent redressal organisation
If you are a taxpayer, you sure would have a tale to tell about your tryst with the tax department. While there are some mechanisms to help taxpayers resolve their grievances, the Economic Survey offers a new ray of hope by emphasising on the need for reintroducing the tax ombudsman, independent of tax administration, to fulfil taxpayers’ rights. It states that a dedicated institution to take up issues from taxpayers’ perspective helps in developing trust of the taxpayers.
Background For direct taxes, the Institution of Income-Tax (I-T) Ombudsman was created in the year 2003 to deal with grievances related to settlement of IT complaints.
Read more about CBDT relaxes requirement of remunerating fund managers of offshore funds on Business Standard. The board s permission will be required from FY21-22 if fees paid to the manager are lower than the prescribed amount