The Central Board of Direct Taxes (CBDT), the apex policy-making body for direct taxes in India, on Tuesday clarified that the indirect transfer provisions under section 9(1)(i) of the Income Tax Act, 1961 is not applicable in case of redemption of shares or interest outside India.
During the 2017-18 budget speech, the Union Finance Minister Arun Jaitley proposed exemption to Category I & II Foreign Portfolio Investor (FPI) from indirect transfer provision with a view to grant relief to overseas investors.
Indirect transfer provision shall not apply in case of redemption of shares or interests outside India as a result of or arising out of redemption or sale of investment in India which is chargeable to tax in India.
Subscribe Taxscan Premium to view the Judgment
