ALSO READIndia, Switzerland ink agreement on tax information exchange China will temporarily exempt foreign firms from provisional income tax for reinvested profit Taxpayers granted 10-day extension for filing GSTR-1 GST collections dip for second month in Nov to Rs 80,808 cr GST Council officers to discuss revenue fall on Thursday
In its recommendations to the government on the forthcoming Union Budget, the Confederation of Indian Industry (CII) has also said that, alternatively, to negate the multiple level taxation issues regarding dividend distributed, the company paying dividend should pay tax on its profits, including distributed profits, at corporate rates.
The chamber has also recommended "that Section 80M which granted deduction of inter corporate dividend received by a domestic company to the extent of amount distributed by the recipient domestic company on or before the due date of filing return of income, should be reintroduced to preempt double taxation of inter corporate dividend.
"The second proposal is regarding Alternative Investment Funds."
On the with-holding tax (WHT) provisions for foreign portfolio investors (FPI), CII has suggested the reduced tax should be made perpetual, and not expire after June 2020, "to ensure tax certainty and higher participation from international investors".
Currently, WHT deduction at source on interest payments to FPIs stands at 5 per cent on investments in rupee denominated domestic corporate bonds. It was reduced from 20 per cent to 5 per cent and has been made available till June 2020.
"FPIs interest in participation in Indian economy is increasing due to the sound economic growth of the country and the bare minimum incentive they want is tax certainty in the long term," the statement said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)