INSUBCONTINENT EXCLUSIVE:
Days after issuing a circular that sought to clarify taxes on valuations, Central Board of Direct Taxes (CBDT) withdrew it following a
Congress party press conference at which it said move would exonerate Rahul and Sonia Gandhi over income-tax liabilities in Associated
Journals Ltd (AJL) case.
The withdrawal means that taxman will again start challenging valuations in cases where there was a fresh issuance
why government is creating so much confusion in investing space
Just a simple clarification was required so that genuine investments from listed companies, Sebi-registered AIFs (Alternative Investment
Funds), holding companies into subsidiaries, angel funds into DIPP-registered startups, other similar investments should have been made
in 2010 to prevent money laundering
said Girish Vanvari, founder of tax advisory firm Transaction Square
relief thanks to clarification issued on December 31
It was withdrawn through another circular issued on night of January 4.
Experts said original clarification only dealt with unintended
implications of income tax rules
Maheshwari, partner, Ashok Maheshwary and Associates LLP
experts said shift on valuation issue was mainly due to press conference by Congress.
Party leader Ahmed Patel and Vivek Tankha, head of
