I-T amendments not to impact foreign investment, says Pranab

Assuaging concerns of foreign investors on proposed amendments to tax laws retrospectively, Finance Minister Pranab Mukherjee today said they are "clarificatory" in nature and will not have any impact on foreign investments. While replying to a query in the Lok Sabha during Question Hour, the Minister further said that proposed amendments will not override the provisions of the Double Taxation Avoidance Agreements (DTAA) with 82 countries. Proposed amendments "just clarify" what is already there in law to remove ambiguity and provide certainty, he said. "... it will not have any impact on foreign investment flow in the country. This is more so because these clarifications ... will not override the provisions of Double Taxation Avoidance Agreements with 82 countries...," he said. DTAAs are relevant for taxation of non- residents in the case of offshore merger and acquisitions.