India: Sale of shares and treaty benefits; income tax returns for 2020-21
India: Sale of shares and treaty benefits
The KPMG member firm in India has prepared reports about the following tax developments (read more at the hyperlinks provided below).
- Sale of shares: The Authority for Advance Rulings rejected an application for a “nil” withholding certificate, finding an entire arrangement relating to a sale of shares of a company was designed prima facie to avoid tax in India and that a real intention behind the structured transaction was to invoke the benefits of the India-Mauritius tax treaty. The case is: Tiger Global International II Holdings. Read a June 2020 report [PDF 160 KB]
- Income tax return forms revised for the Assessment Year 2020-21: The Central Board of Direct Taxes amended the income tax return forms for Assessment Year 2020-21. In general, the revised forms reflect tax law changes. Also, due to the coronavirus (COVID-19) pandemic, various due dates have been extended and therefore a separate schedule is provided to declare investments, deposits, and payments made between 1 April 2020 through 1 June 2020. Read a June 2020 report [PDF 181 KB]
- Incentive scheme for medical devices: The Ministry of Chemicals and Fertilizers, Department of Pharmaceuticals, and the government of India introduced the “production linked” incentive scheme (PLIS) to boost domestic manufacturing by attracting large investments in the medical devices sector. Read a June 2020 report [PDF 178 KB]
- Carried-forward losses transferred from demerged company: The Kolkata Bench of the Income-tax Appellate Tribunal addressed the set-off of carried-forward losses transferred from the demerged company to the resulting company. The tribunal held that the resulting company is eligible to apply the carried-forward losses by filing an amended return. The case is: Padma Logistics & Khanji Pvt Ltd. Read a June 2020 report [PDF 190 KB]
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.