New Delhi: The government will introduce changes to income tax laws once a tax dispute with telecoms firm Vodafone is resolved, Finance Minister P Chidambaram said yesterday.
“Amendments to the Income Tax Act is inevitable, that is absolutely necessary,” Chidambaram told reporters, adding that the government was waiting for a possible outcome of negotiation over a $2bn tax dispute with telecoms major Vodafone.
Chidambaram said he would propose the changes in the Income Tax Act once the Vodafone dispute was resolved.
The world’s largest telecoms service provider, Vodafone is involved in a Rs.110bn ($2.2bn) tax dispute with Indian authorities related to $11bn acquisition of mobile assets from Huitchison in 2007.
The finance minister emphasised that India was a “safe and attractive destination for investments.”
Chidambaram said he had visited major financial centres like Tokyo, Dubai and Hong Kong to attract overseas investments in India.
IANS
