Thursday, July 15, 2010

FIIs INCOME TO BE TAXED AS CAPITAL GAIN

The government has proposed to tax the income of FIIs from the sale and purchase of securities as capital gains under the proposed Direct Taxes Code (DTC). The majority of the FIIs are reporting their income from such investments as capital gains, but some of them were showing it as business income and claiming total tax exemption in the absence of a permanent establishment in India, leading to litigation.

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