Indian Companies Will Soon Be Taxed for Investments in Foreign Firms

Investment by Indians in controlled foreign corporations (CFCs) will be liable to wealth tax, once the Direct Tax Code becomes law, reports the Economic Times.

 

Under the DTC, an entity is considered a CFC when one or more persons residing in India exercise control over a foreign company, reports the Economic Times.

 

Many Indian companies have investments in CFCs and DTC is proposing to tax these investments, notes the Times.

 

The provision to tax productive assets will be implemented once the Direct Tax Code regime, which seeks to replace the Income Tax Act, 1961, is implemented from April 2012.

 

 

MORE ARTICLES ON TAX

Suggested Articles

Some of you might have already been aware of the news that Questex—with the aim to focus on event business—will shut down permanently all media brands in Asia…

Some advice for transitioning into an advisory role

Global risks are intensifying but the collective will to tackle them appears to be lacking. Check out this report for areas of concern