India - Proposed Legislative Changes and Impact on Foreign Investment Funds Investing in India
- R. Nayak; C. D’Almeida
- Derivatives & Financial Instruments, 2010 (Volume 12), No 6
- 5 November 2010
The Direct Taxes Code, 2010 proposes to replace the current Income Tax Act, 1961 and is envisaged to be effective from 1 April 2012. While the Direct Taxes Code provides clarity for foreign institutional investors with regard to certain transactions, some provisions – such as the introduction of general anti-abuse rules and change in the residency test for companies – are a cause of concern.