The Finance Bill 2012 - Key Changes/Proposals

1. DIRECT TAX

1.1. Non-resident / International taxation

1. Retrospective amendment in source rule regime under Section 9 of the Income Tax Act, 1961 to neutralize the impact of Vodafone decision of Supreme Court in case of indirect transfer of controlling interest in an Indian company
2. All notice for show cause /tax assessments already issued in respect of similar transactions have been sought to be validated
3. Definition of 'property' and 'transfer' to be amended to cover direct or indirect transfer of management or controlling rights in an Indian company for levy of capital gains tax
4. Non-resident purchaser to withhold tax in case of non-resident to non-resident transactions whether or not there is a residence or place of business or business connection or any other presence in India