New Delhi: The Finance Bill 2015 was tabled in the Parliament on Thursday and was passed later with a voice vote. The Bill contains the government's tax proposals for the fiscal FY16.
Speaking in the lower house, Finance Minister Arun Jaitley on Thursday defended his Finance Bill and gave clarifications on issues like the revised Income Tax Return (ITR) forms, the contentious Minimum Alternate Tax (MAT) levied to FIIs, Real Estate Investment Trusts (REITs) as well as overall India's growth projection.
Finance Minister Arun Jaitley today said capital gains made by foreign investors will be exempt from Minimum Alternate Tax (MAT), but did not provide relief for past liabilities.
The Minister said all capital gains from sale of securities as well as royalties, interest, technical services fee earned by foreign companies will be exempt from MAT, if the normal tax rate on such income is lower than 18.5 per cent. More importantly, he added, MAT will also not be applied on sale of units of REITs.
Jaitley further said the MAT exemptions will apply to FIIs income if the normal tax rate would be below 18.5 per cent. The FM also lowered export duty on some grades of iron ore from 30 per cent to 10 percent and raised basic customs duty on natural rubber.
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