I-T Act to be amended once Vodafone tax dispute resolved: FM

New Delhi (PTI): Union Finance Minister P Chidambaram on Saturday said the government would amend the Income Tax Act once the over Rs 11,200 tax dispute with Vodafone is resolved. The minister said, however, that such an amendment was unlikely in the ongoing Budget Session. "An amendment to the I-T act is necessary. The question is when do you move the amendment? "My proposal is let's find a possible solution to the Vodafone dispute and then go to Parliament with the amendment saying this is the possible solution that we have been able to arrive at tentatively. Please amend the Act so that we can implement it," he told reporters here. Although the British telecom giant had won a tax case in the Supreme Court, the government had amended the Income-tax Act with retrospective effect to undo the ruling. Following that, the Income Tax Department issued a letter in January to Vodafone International Holdings BV stating that the company is required to pay tax demand of about Rs 11,217 crore along with interest. However, Vodafone replied back saying that they do not owe anything to the Indian government.

On Insurance Bill The Finance Minister has expressed the hope that Insurance Amendment Bill, which seeks to raise FDI cap in the sector to 49 per cent, will be passed soon. He said the optimism stems from the fact that there is difference of opinion only with regard to one clause in the long-pending Bill, for which he is in touch with the main opposition party BJP to sort that out.

Black money being probed Chidambaram has said that an inquiry has been initiated against the individuals whose names appeared in a global report on the monies stashed in tax heaven. "Yes. We have taken note of the names and inquiries have been put in motion in respect of the names that have been exposed", he said when asked whether the government has taken any action with regard to expose in connection with bank accounts in tax havens.

No early elections, says Chidambaram New Delhi (PTI): Ruling out early general elections, Union Finance Minister P Chidambaram on Saturday said the government will complete its agenda for 2013 and then go to polls. "There will be no early elections. Elections will take place on time in May, 2014," Chidambaram said at an hour-long press conference. He was asked to comment on reports of some ministers being drafted for party work by Congress. "Why should the government expect an early election? All that I said in the last 50 minutes, does that point towards early elections? It points to completing our agenda for 2013-14 and then going for elections in the month of May," Chidambaram said.