Income Tax

Indirect Transfer provision-possible multiple taxation of the same income. Circular 41/2016 kept in abeyance-CBDT

Indirect Transfer provision-possible multiple taxation of the same income. Circular 41/2016 kept in abeyance considering representations-CBDT

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, 17th January, 2017

PRESS RELEASE

Clarification on Indirect Transfer provision under the Income Tax Act, 1961

Circular No. 41/2016 was issued on 21.12.2016 which dealt with clarification on Indirect Transfer provisions. After the issue of the aforementioned circular, representations have been received from various FPIs, FIIs, VCFs and other stakeholders. The stakeholders have presented their concerns stating that the circular does not address the issue of possible multiple taxation of the same income. The representations made by the stakeholders are currently under consideration and examination. Pending a decision in the matter the operation of the above mentioned circular is kept in abeyance for the time being.

(Dr. Binod Kumar Sinha)
Commissioner of Income Tax
(Media & Technical Policy)
& Official Spokesperson, CBDT

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