Key Points
After a flurry of probing questionnaires over the past few months, the income tax (I-T) department has held back assessment orders on several foreign portfolio investors (FPIs) to fish out more information on them from jurisdictions such as Mauritius...
While the matters, mostly relating to the financial year 2021-22, became time-barred on March 31, 2024, the tax office has invoked the provision under the law to buy more time on the grounds that efforts are underway to obtain more facts...
The final assessment orders have not been issued to around 10 funds, industry sources told ET...
According to Rajesh Gandhi, partner at Deloitte India, which advises many offshore portfolio managers, in some selective cases assessments have been kept on hold and information has been sought from Mauritius under the inter-government exchange of information arrangement...
ET had reported a month ago that some of the funds were asked whether they had borrowed money to trade on stock exchanges; a few notices had asked the FPIs to share minutes of old board meetings held years authorising the purchase and sale of securities and as well as the opening of bank accounts in Mauritius..
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