Provisions of the Indian Finance Bill 2012 Affecting the Income Tax Act

SIFMA, as part of a Coalition of 11 associations, provides comments to the Deputy Assistant to the President of the National Security Council (NSC) on amendments proposed by the Indian Finance Bill 2012 affecting India’s Income Tax Act of 1961.  The Coalition warns the proposed amendments include an unprecedented period of retroactive tax collection, a broad and unclear general anti-avoidance rule (GAAR) which contemplates the denial of negotiated tax treaty benefits, and an onerous tax on indirect stock transfers. If enacted these provisions would be detrimental to the Indian, U.S. and global economies. Given the timeframe for action is limited, the Coalition strongly urges the NCS to raise these issues with their India colleagues.