Budget 2017: Govt makes exemptions for FPIs for ease of doing business
Jaitley announced that the threshold limit for audit of business entities who opt for presumptive income scheme increased from Rs 1 crore to now Rs 2 crore.
The Union Budget 2017 has taken several steps for ease of doing business which is the government's efforts to push investment in the country. One of the key announcements that Finance Minister Arun Jaitley made during the Budget 2017 speech was that Foreign Portfolio Investors (FPIs) in category 1 and 2 are exempted from indirect transfer provision.
“Indirect transfer provision shall not apply in case of redemption of shares or interests outside India as a result of or arising out of redemption or sale of investment in India which is chargeable to tax in India,” said Jaitley.
Similarly Jaitley announced that the threshold limit for audit of business entities who opt for presumptive income scheme increased from Rs 1 crore to now Rs 2 crore. Similarly, the threshold for maintenance of books for individuals and Hindu Undivided Family (HUF) increased from turnover of Rs 10 lakh to now Rs 25 lakh or income from Rs 1.2 lakh to Rs 2.5 lakh.
“The scope of domestic transfer pricing restricted to only if one of the entities involved in related party transaction enjoys specified profit-linked deduction,” he said.
The government has also exempt commission payable to individual insurance agents from the requirement of Tax Deducted at Source (TDS) subject to their filing a self-declaration that their income that is below taxable limit.
The Budget also announced that under scheme for presumptive taxation for professionals with receipt up to Rs 50 lakh per annum advance tax can be paid in one instalment instead of four.
Time period for revising a tax return is being reduced to 12 months from completion of financial year, at par with the time period for filing of return.
Also the time for completion of scrutiny assessments is being compressed further from 21 months to 18 months for Assessment Year 2018-19 and further to 12 months for Assessment Year 2019-20 and thereafter.
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