Interest on masala bonds to be tax-exempt
The government on Monday announced tax exemption on interest payable by Indian companies to non-residents, including foreign companies, on "masala bonds" issued till March 31, 2019.
 
Till now, interest payable on such bonds issued before July 1, 2020 was liable for concessional rate of tax of five per cent.
 
The announcement came following Prime Minister Narendra Modi's economic review meeting on Friday, after which Finance Minister Arun Jaitley had announced a multi-pronged strategy to contain the Current Account Deficit (CAD) and augment the foreign exchange inflow.
 
"In this background, low-cost foreign borrowings through off-shore rupee denominated bonds (also called masala bonds) have been further incentivised to increase the foreign exchange inflow," an official statement said.
 
"Consequently, no tax shall be deducted on the payment of interest in respect of the said bond," it said, adding that legislative amendments in this regard shall be proposed in due course.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Sebi allows strategic investors to invest up to 25% in REITs and InvITs
    Securities market regulator Sebi has eased norms for real estate investments trusts (REITs) and infrastructure investment trusts (InvITs) to raise funds from strategic investors.
     
    According to a Sebi circular, REITs and InvITs can invite subscriptions from strategic investors.
     
    "The strategic investor(s) shall, either jointly or severally, invest not less than 5 per cent and not more than 25 per cent of the total offer size," Sebi said in a circular issued on Thursday.
     
    "The investment manager or manager on behalf of the InvIT or REIT, shall enter into a binding unit subscription agreement with the strategic investor(s), which propose(s) to invest in the public issue of InvIT or REIT."
     
    The circular further states that subscription price per unit, "payable by the strategic investor(s), shall be set out in the unit subscription agreement and the entire subscription price shall be deposited in a special escrow account prior to opening of the public issue".
     
    "The price at which the strategic investor(s) has or have agreed to buy units of the InvIT or REIT shall not be less than the issue price determined in the public issue," the circular reads.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
     

     

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    Breakthrough for Harried Property-buyers
    There is a significant breakthrough for thousands of people who are at the mercy of large builders after having paid for property, when they run into financial trouble. Media reports indicate that in two cases, Jaypee Infratech and the Aamrapali group, the insolvency regulator has brought in a special provision to protect the home-buyers. It has said that the claims of property-buyers would be treated on par with those of other creditors, such as banks. This gives investors a fighting chance of protecting their investment in the under-construction homes in buildings projects that are left incomplete by beleaguered realty companies.
     
    The Insolvency and Bankruptcy Board of India (IBBI), in charge of implementing the Insolvency and Bankruptcy Code (IBC), has said in a formal notification that it has introduced Form F which has to be filed by property-buyers to submit their claims it. According to media reports, this still does not allow property owners to approach the National Company Law Tribunal (NCLT) directly; but their claims would not be pushed to the bottom of the heap. It is not clear how this change would work in practice, since most beleaguered builders have gone on to raise funds against the security of buildings, for which they have already collected funds from individuals against the sale of flats. It is only when the NCLT, finally, disposes the cases of Jaypee Infratech (which has over 32,000 affected property-buyers) and the Aamrapali group (30,000 affected persons), will we really know whether property-buyers’ rights are fully protected. For now, they have a fighting chance of safeguarding their investments in these companies. 
     
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