« Top Headlines » Open DEMAT Account in 24 hrs  Tax planning for 2025: How to maximise your savings before March 31 deadline  New income tax bill reaches Parliament: Finance Minister Nirmala Sitharaman tables I-T Bill 2025 in Lok Sabha  5 major changes in the last 6 months every taxpayer should know!  Good news for taxpayers: ITR forms updated to allow 87A tax rebate claims, but there's a catch  Top 10 income tax changes from 2024 to look out for while filing ITR in 2025 «  Tax as penalty is not valid... Ficci wants infrastructure tax incentive back... » Use FDI to expand tax base: Shome November, 15th 2006 The government should look at foreign direct investment as an avenue for expanding the tax base, suggested Parthasarthi Shome, advisor in the office of the Finance Minister.    Shome today suggested a cost-benefit assessment of the effects of foreign direct investment in terms of its benefits versus the losses that result from revenue foregone through the tax sops that are given to attract foreign capital.    Ultimately, we have to look at whether we are able to expand the tax base. The government is continuing its effort to expand the base, he said.    Ficci President Saroj Kumar Poddar suggested a modification in the tax system to remove constraints on in-bound and outbound investments.    In order to encourage Indian companies which had overseas subsidiaries to repatriate their earnings, he said the receipt of dividend and capital gains should be exempted from tax or taxed on a concessional basis.    Poddar also said the government needed to clarify that transactions in respect of such Indian assets would not be regarded as transfer for the purpose of capital gains under Section 47 of the Income Tax Act.    He urged expansion of the scope of Authority of Advance Ruling to cover transactions undertaken by resident assessees.    Ficci also suggested that Dividend Distribution Tax (DDT) needed to be brought within the ambit of double taxation avoidance agreements.    A re-look at transfer pricing norms and provision of a 100 to 300 per cent penalty on the tax payable on the amount of adjustment was also mooted by the industry body.    Jeffrey Owens, director, OECD Centre on Tax Policy and Administration, pointed out that a major challenge existed for Indian corporates with regard to how their overseas subsidiaries were taxed.