Air India Disinvestment - Govt exempts TDS/TCS on transfer of assets by Air India to SPV
The government has exempted taxes on transfer of assets by Air India to SPV Air India Assets Holding Ltd, a move aimed at facilitating strategic disinvestment of the national carrier.
As a precursor to Air India sale, the government in 2019 had set up a special purpose vehicle Air India Assets Holding Ltd (AIAHL) for transfer of debt and non-core assets of the Air India group.
See Zee Business Live TV Streaming Below:
In a set of notifications, the Central Board of Direct Taxes (CBDT) has said that no TDS shall be deducted under section 194Q in case of transfer of goods by Air India Ltd to AIAHL.
Also, no TDS shall be deducted under section 194-IA of I-T Act on payments made to Air India for transfer of immovable property to AIAHL.
The CBDT also said that Air India would not be considered as 'seller' for the purposes of deduction of TCS for with regard to transfer of goods by it to AIAHL.
It said that transfer of capital asset under plan approved by central government from Air India Ltd to AIAHL would not be regarded as transfer for the purpose of income tax.
Last week, the CBDT had allowed new owners of erstwhile public sector companies to carry forward losses and set it off against future profits.
This is an effort towards making disinvestment deals of ailing state-owned firms more attractive for strategic investors.
The government is seeking to sell 100 per cent of its stake in the state-owned national airline, including Air India's 100 per cent shareholding in AI Express Ltd and 50 per cent in Air India SATS Airport Services Pvt Ltd.
The strategic sale has reached the crucial phase with the September 15 being the last date for putting in financial bids by potential buyers.
The government wants to complete the long pending Air India strategic sale this fiscal. The disinvestment target for this fiscal has been set at Rs 1.75 lakh crore.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/markets/stocks/photo-gallery-this-tata-group-stock-turned-every-rs-10000-of-investment-into-rs-11300-in-just-a-week-investors-richer-by-42722-crore-rupees-any-guesses-share-market-news-304023](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307143-tradingpexels.jpg?itok=rw4R7EfH)
A Tata group stock just turned every Rs 10,000 of investment into Rs 11,300 in just a week, investors richer by Rs 42,722 crore; any guesses?
![https://www.zeebiz.com/markets/stocks/photo-gallery-large-cap-midcap-stocks-shares-to-buy-for-long-term-check-out-targets-nifty-sensex-303617](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/25/306716-stockks.jpg?itok=KJTrFUIK)
Stocks to buy for long term: Analysts suggest buying these 5 largecap, 4 midcap scrips; check out targets
![https://www.zeebiz.com/personal-finance/photo-gallery-nps-retirement-planning-budget-2024-nirmala-sitharaman-announcement-how-nps-rulebook-change-can-increase-corpus-income-and-monthly-pension-by-40-compound-return-303984](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307102-indian-currency-pixabay-take.jpg?itok=kN21EW-9)
How your NPS retirement corpus and monthly pension can jump by 40% after this rule change; get details
![https://www.zeebiz.com/personal-finance/photo-gallery-senior-citizen-savings-scheme-scss-2024-interest-rate-calculator-post-office-how-to-get-inr-rs-50000-interest-retirement-planning-guaranteed-return-maturity-amount-small-savings-303930](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307042-fd-interest-file.jpg?itok=45ZbBRWM)
How much investment do you need in this senior citizen scheme to get Rs 50,000 quarterly interest? Know here
04:09 PM IST