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RBI's working group on taxation practices

Terms of reference will be to review current tax structure as applicable to various financial instruments issued in Indian financial system

BS Reporter  |  Mumbai 

The RBI's many rates

To promote financial savings, the Reserve Bank of India (RBI) has constituted a working group to study various issues relating to of financial instruments in India and suggest rationalisation.

Members of the working group includes Y H Malegam, director, central board, and H P Ranina, a corporate lawyer. He is also a former director, central board, Shilpa Kumar, senior general manager, ICICI Bank, is also a member of the working group.

The terms of reference will be to review the current structure as applicable to various financial instruments issued in the Indian financial system.

It shall also include identification of possible ‘arbitrage’ among financial instruments under the extant tax structure and to suggest rationalisation of tax treatment across financial instruments.

The suggestions for rationalisation will be done to promote financial and to distortions.

This would also take into account the recommendations of earlier committees in this regard and the draft Direct Taxes Code. The working group is expected to submit its report within three months of its first meeting.

First Published: Thu, August 21 2014. 00:44 IST