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Concerns under Tax Law
the same process when there are sponsors and shareholders who are residents of the countries sharing a land border with India. The present concern here is that there would be a pressing need to streamline the regulatory approvals for SPAC mergers and acquisitions.
Concerns under Tax Law
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In India, the law of taxation is classified into two parts, viz., direct and indirect taxes. The direct tax portion is governed by the Income Tax Act, 196134 containing levy of tax on salaries, business income, capital gains, house property and income from other sources.35 The other types of taxes which are covered under the Income Tax Act, 1961 include securities transaction tax, minimum alternate tax, equalisation levy, fringe benefits tax and dividend distribution tax.36 In the indirect taxes portion, the governing law includes the various Goods and Services Tax laws such as the Central Goods and Services Tax Act, 2017, State Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017 and the Union Territory Goods and Services Tax Act, 2017.37 Furthermore, even the law on Customs governed by the Customs Act, 196238 and the Customs Tariff Act, 197539 are covered under the indirect tax portion. However, for the purposes of the present report, only issues pertaining to tax on business income (corporate tax) and capital gains tax will be discussed.
34 The Income Tax Act, 1961 <https://legislative.gov.in/sites/default/files/A1961-43.pdf> accessed 03 October 2021. 35 Vinod K. Singhania and Kapil Singhania, Direct Taxes Law & Practice: Professional Edition (Taxmann 2020). 36 Vinod K. Singhania and Kapil Singhania, Direct Taxes Law & Practice: Professional Edition (Taxmann 2020). 37 Central Board of Indirect Taxes & Customs, ‘GST- Goods and Services Tax’ (Central Board of Indirect Taxes & Customs, 2021) <https://www.cbic.gov.in/htdocs-cbec/gst/index-english> accessed 03 October 2021. 38 The Customs Act, 1962 <https://legislative.gov.in/sites/default/files/A1962-52.pdf> accessed 03 October 2021. 39 The Customs Tariff Act, 1975 <https://www.indiacode.nic.in/bitstream/123456789/8774/1/A197551.pdf> . Accessed 03 October 2021.
