India Reduces Time-Period For Investigations
The Indian Government has announced its intention to reduce the time-period during which the tax authority can probe an individual’s tax affairs. Under the change, the authority will be able to investigate a taxpayer only within three years of the relevant year, rather than the current six years. However, investigations may occur up to ten years after the year in question in the case of serious tax evasion involving income of INR5m or more in a year.
Further, the Budget unveiled plans for a new dispute resolution committee. Taxpayers with taxable income up to INR5m (USD68,000) and with disputed liability of up to INR1m will be able to approach the committee.
With regard to indirect taxes, the Budget announced that India will phase out hundreds of customs duty exemptions, in a new duty structure to be introduced in October.
The Budget also announces a tax on exports of electronic and mobile devices of 2.5 percent, up from zero percent, and the aforementioned cut to the import tax rate on gold and silver to 7.5 percent from 12.5 percent.
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