New Delhi, Aug 23 (IANS) With the government announcing the roll back of the FPI surcharge on Friday, leading experts said considering this was already passed through the Finance Act in the Budget, the likely route the government would take it is to amend the particular portion of the Act in the next session of Parliament.
Leading direct tax expert Ved Jain told IANS the government would amend the relevant portion of the Act.
“In my view Finance (No 2) Act, 2019 recently passed by the Parliament will be amended. Schedule 1 Part III appended to the Finance Act prescribes tax rates. The para C below the tax rates at present states that person having income exceeding RS 2 crore shall pay surcharge @ 25 per cent and para D states that person having income exceeding RS 5 crore shall pay surcharge @37 per cent.
“This can be amended in the next session of Parliament by inserting words ‘other than income from capital gain on equity shares’ after the word income. This will mean no increased surcharge on income from capital gain from equity shares both for foreign as well as resident investors. Income other than capital gain, if it exceeds Rs 2 crore, will be liable for increased surcharge,” he said.
Some other experts said looking at the urgency of the government, it could be through an Ordinance also.
The next session of the Parliament will be the winter session in November.