Union Finance Minister Arun Jaitley has justified the Rs 40,000 crore tax demand on Foreign Institutional Investors (FIIs) in India after the latter lost a case against levy of 20% Minimum Alternate Tax on capital gains at the Tribunal.
The Finance Minister said the FIIs opposed the move, went to the tribunal and lost the case. “Now, we will seek those Rs 40,000 crore, which will help us in changing face of India’s irrigation”, he said. Although the BJP-led NDA government abolished the MAT from April 1, 2015, it has demanded the tax related to earlier period.
Many foreign companies have come under the scanner over tax evasion. The I-T Department had recently issued tax demands on Cairn Energy Plc of UK and Cairn India along with Cadbury India.