Press Trust of India |
New Delhi
May 20, 2012
Last Updated at 12:27 IST
'Retrospective amendment to I-T Act may impact FDI in India'
Italian Trade Commissioner Erica Di Giovancarlo says India has a huge potential to attract FDI
The amendment to Income Tax laws with retrospective effect passed by Parliament may impact inflows of foreign direct investment (FDI) into the country, a top Italian trade official has said.
"Of course, taxes are always bit worrying ... Partly, it (the I-T amendments) will impact FDI into India," Italian Trade Commissioner Erica Di Giovancarlo told PTI.
However, Giovancarlo said India is a fast-growing economy and has huge potential to attract FDI.
Parliament has approved the amendment in the Income-Tax Act, 1961 with retrospective effect to bring all overseas mergers and acquisitions involving Indian assets in tax net.
Various global chambers, too, had cautioned that such tax moves could dent India's image as an investment destination.
The government on several occasions has said that the amendments are clarificatory in nature and would have no impact on FDI inflows.
FDI flows into India has continued unabated with a highest ever monthly inflow in March at $8.61 billion. Cumulative FDI inflows for the fiscal 2011-12 amounted to $36.50 billion.
