Ministry of Finance: Task Force Setup For Income Tax New Legislation

In a recent bid to avoid the double taxation issue, the Government of the Republic of India and the Government of the People’s Republic of China have amended the Double Taxation Avoidance Agreement (DTAA) which will also prevent the fiscal evasion on taxes.

The amendment was done through signing a protocol on 26 Nov 2018, and also includes the revised provisions for exchange of information according to the updated international standards.

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There were also minimum standards set for the action reports of Base Erosion & Profit Shifting (BEPS) Project in which both the parties have agreed to cooperate.

Apart from this, the Indian government also formed a task force to draft new direct tax law which resonates with the current economic needs. The task force is due to submit the report by 28th Feb 2019.