At a Glance: 2011 Indian Union Budget

By: EW News Desk Team   Date: 1 March 2011

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EW News Desk Team

Always on the look out for the latest news to monitor the state of the world economy.

EconomyWatch, News Desk Team

 

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01 March 2011

Finance Minister Pranab Muhkerjee announced India’s 2011 Union Budget yesterday. So what does India’s 2011 Union Budget mean for India Inc?

At a glance:

.77 percent tax surcharge cut in corporate tax for domestic firms. Not a major reduction, but a welcome relief. In addition, minimum alternate tax has been raised marginally to off-set the surcharge cut.

15 percent reduction in the rate of tax on dividends received by a company from its foreign subsidiary to provide incentives to domestic firms to repatriate money from their overseas subsidiaries - and encourage local companies to bring back cash from their overseas arms.

The tax department will clamp down on MNCs mis-pricing products or services - the government intends to fixe a markup or acceptable deviation from the market price.

Multinational companies doing business in the country will find it tough to transfer  profits to off-shore group firms.

Tax exemptions for debt funds for financing infrastructure.

More on the Economic Times.


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