Showing posts from March, 2015

Alternative Investment Funds (AIFs) Vis-à-vis BUDGET 2015-16

SEBI came out with Alternate Investment Fund Regulations in May 2012, though since then, no specific exemptions ever found placed under the Taxation provisions to promote these funds. By and large since the applicability of these Regulations close to 120 AIF were registered with SEBI within a span of short 2 years wherein majority of these funds had been in the nature of Trust to avail the benefit of Tax pass through following the advance ruling of AIG (in Re: Advance Ruling P. No. 10 of 1996).

Ms. Deepika Vijay Sawhney Partner +919818316936 Lately The Central Board of Direct Taxes (“CBDT”) issued a Circular No. 1 dated July 28, 2014 (“Circular”) to provide ‘clarity’ on the taxation of Alternative Investment Funds wherein it was provided that if ‘the names of the investors’ or their ‘beneficial interests’ are not specified in the trust deed on the ‘date of its creation’, the trust will be liable to be taxed at the ‘Maximum Marginal Rate’. This said circular created…

REITS vis-a-vis Budget 2015-16

REITs /InvITs – Brief Background: In the Finance Bill 2014-15, the Hon’ble Finance Minister first introduces the concept of Real Estate Investment Trust (REITs) and Infrastructure Investment Trusts (InvITs). Subsequently in September 2014, the Securities Exchange Board of India, came out with detailed Regulations as to the functionality and governance of these Business Trusts i.e. SEBI (Real Estate Investment Trust) Regulations 2014 and SEBI (Infrastructure Investment Trust) Regulations 2014.

Ms. Deepika Vijay Sawhney Partner +919818316936 Since the promulgation of the aforesaid regulations, despite of high market interest, the Country has not witnessed any registration or initiation of registration of these business trust with SEBI, the same being due to less clarity on the taxation as well as disadvantageous tax position of the Sponsor/promoter of these Trusts. 
Owing to the industry representation, the Hon’ble Finance Minister in its Finance Bill 2015-16 has proposed f…

Non-Equity Incentive Plans

It is rightly said that inculcating a feeling among the Employees that management is not just concerned about their value addition to the organization but is very well concerned in accretion of their personal wealth, would not just create a sense of belongingness among Employees but would enhance their overall productivity. Besides cash rewards, it is important for any organization to make its employees believe that their personal growth is linked to the growth of the organization. Employee Stock Option Plans /Equity Incentive Plans (commonly referred to as ESOPs) are one of the most important tools to attract, encourage and retain Employees.

Ms. Mohini Varshney Assistant Vice President +919971673332 Long-term growth potential of a business is directly proportional as to how well it is able to maintain a balance between satisfaction of its employees and preservation of its assets and financial resources. Generally, the Companies opt for one or more modes with some pe…

Union Budget 2015: Investment Environment and Tax Aspects

The 2015 budget had long list of expectations. On one hand; the Government has addressed major issues surrounding the foreign investors which would certainly boost capital market inflows and revive the private equity industry (by deferring GAAR by 2 years and clarifying Permanent Establishment & Indirect Transfer of Assets). On other hand; it has just rationalized the subsidies. Probably as we see growth coming in and more job creation; subsidy burden can be better dealt with by the Government. Though there are no direct benefits for the middle class. However incentives have been introduced to encourage savings. These savings are expected to fuel the infrastructure and other investment plans laid out by the Government. Certainly Foreign investors have a reason to cheer for this Pro Business; Pro Growth Government budget.

View our paper on Investment Environment and Tax Aspects of Union Budget 2015 here:

Union budget 2015 Investment Environment and Tax Aspects from Corporate Profes…