What Gopal Srinivasan of TVS Capital Funds Limited expects from Budget 2016
My theme is "Empower AIFs to efficiently provide capital for Startups to Standup, for companies to grow and go beyond".
- Feb 11, 2016,
- Updated Feb 17, 2016 1:32 PM IST
1. Make the FDI in AIF scheme effective by notifying that double-taxation avoidance agreements are applicable (as they should be) for FDI contributions
2. Atititi Devo Bhava is providing safe harbour for India-based VC/PE managers of overseas vehicles. These provide 80 per cent of the VC/PE investments made in the country. Enable a framework by modifying Rule 9A (this rule currently provides this only for volatile and fickle capital from Foreign Portfolio Investors)
3. Place listed market transactions and unlisted share transactions on an even footing for long term capital gains tax purposes. It is strange that the tax regime levies a punitive tax rate (and that too imposes a three year hold period) for private capital that is patient, takes significant risks and remains illiquid. And yet allows liquid and fickle public market investments to enjoy zero rates of long term capital gains tax for just an one year hold!
1. Make the FDI in AIF scheme effective by notifying that double-taxation avoidance agreements are applicable (as they should be) for FDI contributions
2. Atititi Devo Bhava is providing safe harbour for India-based VC/PE managers of overseas vehicles. These provide 80 per cent of the VC/PE investments made in the country. Enable a framework by modifying Rule 9A (this rule currently provides this only for volatile and fickle capital from Foreign Portfolio Investors)
3. Place listed market transactions and unlisted share transactions on an even footing for long term capital gains tax purposes. It is strange that the tax regime levies a punitive tax rate (and that too imposes a three year hold period) for private capital that is patient, takes significant risks and remains illiquid. And yet allows liquid and fickle public market investments to enjoy zero rates of long term capital gains tax for just an one year hold!