New Delhi: Finance Minister P Chidambaram on Friday announced that the Centre had cut tax on external commercial borrowings (ECB) by Indian companies to five per cent from 20 per cent. The reduction in tax will encourage Indian companies to raise funds from overseas markets.
The withholding tax liabilities on Indian companies, too, have been reduced to five per cent. This will apply to all borrowings between July 2012 and June 2015.
Chidambaram also approved the Rajiv Gandhi Equity Schemes, tailor-made to encourage first time investors. The investors will get 50 per cent tax rebate on investment under the Rajiv Gandhi Equity Schemes. The maximum investment that can be made under the scheme is Rs 50,000.
21/09/12 CNN-IBN/IBN Live
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The withholding tax liabilities on Indian companies, too, have been reduced to five per cent. This will apply to all borrowings between July 2012 and June 2015.
Chidambaram also approved the Rajiv Gandhi Equity Schemes, tailor-made to encourage first time investors. The investors will get 50 per cent tax rebate on investment under the Rajiv Gandhi Equity Schemes. The maximum investment that can be made under the scheme is Rs 50,000.
21/09/12 CNN-IBN/IBN Live
