Niti Aayog pitches for wider presumptive tax to boost FDI

UNCERTAINTY OVER PERMANENT RESIDENCY NEEDS TO GO: THINK TANK

- FE BUREAU

INAMOVE that will help accelerate foreign investments, a Niti Aayog paper on Friday suggested introducing an optional presumptive taxation regime with sector-specific benchmarks to reduce permanent establishment (PE) and profit attribution uncertainty on overseas investments in India.

Besides the presumptive tax regime, the Working Paper on ‘Enhancing Certainty, Transparency,and Uniformity in Permanent Establishment (PE) and Profit Attribution for Foreign Investors in India’, recommended broader legislative clarity, administrative efficiency, robust dispute resolution mechanisms, and strategic alignment with international best practices.