Income Tax -Manner of determination of fair market value-CBDT Invites suggestions
UNDER section 9 of the Income-tax Act, 1961, income arising from indirect transfer of assets situated in India is deemed to accrue or arise in India. The provisions of section 9(1)(i) of the Act provides that if any share of or interest in, a foreign company or entity derives its value substantially from the assets located in India, then such share or interest is deemed to be situated in India. Thereby, any income arising from transfer of such share or interest is deemed to accrue or arise in India.
In this regard, draft rules and forms to be incorporated in the Income-tax Rules, 1962 have been formulated for comments from stakeholders and general public. The comments and suggestion on the draft rules may be sent by 29th May, 2016 electronically at the email address, ustpl1@nic.in.
F No , Dated : May 23, 2016