Budget 2014 15 Banking and Financial Services sector Edelman

Banking and Financial Services • Government will avoid retrospectively changing policies that will result in the creation of fresh liabilities. All future cases of indirect transfers that fall under the retrospective tax regime will be scrutinised by a high-level CBDT committee • Increase in the FDI cap to 49 per cent granted through the FIPB route with full management and control for the insurance sector; FDI in e-commerce allowed through automatic route • To ensure conformity with Basel-III norms by 2018, PSU banks need equity of Rs 2.40 lakh crore. For this, Government to dilute up to 51 per cent share in banks but to continue to control majority stake. Bank capital permitted to be raised through retail sale of shares Union Budget 2014-15 focuses on driving investments and growing the financial sector

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Transcript of Budget 2014 15 Banking and Financial Services sector Edelman

Banking and Financial Services

• Government will avoid retrospectively changing policies that will result inthe creation of fresh liabilities. All future cases of indirect transfers that fallunder the retrospective tax regime will be scrutinised by a high-level CBDTcommittee

• Increase in the FDI cap to 49 per cent granted through the FIPB route withfull management and control for the insurance sector; FDI in e-commerceallowed through automatic route

• To ensure conformity with Basel-III norms by 2018, PSU banks need equityof Rs 2.40 lakh crore. For this, Government to dilute up to 51 per centshare in banks but to continue to control majority stake. Bank capitalpermitted to be raised through retail sale of shares

Union Budget 2014-15 focuses on driving investments and growing thefinancial sector

Banking and Financial Services

• Proposed liberal tax regime for Foreign Portfolio Investors (FPI) willing toshift their base to India. Income from FPI will be treated as capital gains

• Review under progress for transfer pricing regulations for residents andnon-residents; this is currently a major area for litigation

• Announcement pending towards clarification on tax treatment of foreignfunds

• Introduced new investment products like Real Estate Investment Trusts(REITs) and Infrastructure Investment Trusts (InvITs)

Union Budget 2014-15 focuses on driving investments and growing thefinancial sector