Global investors against use of judicial anti-avoidance rule by tax officials
Income Tax moved higher.
· Economic Times Markets, ET Stocks
International investors have raised concerns regarding the Indian Income-tax authorities' invocation of the judicial anti-avoidance rule. At a recent meeting, investors communicated their issues with the Central Board of Direct Taxes on this matter. The use of JAAR to deny relief on grandfathered shares contradicts prior regulations established by the CBDT.
Why it matters
- With Income Tax involved, this carries a regulatory dimension that can outlast the immediate market reaction.