On 10 August 2016, India's Lok Sabha (lower house of parliament) approved the Taxation Laws (Amendment) Bill, 2016, which includes two main amendments to the Income Tax Act, 1961.
The first amendment provides for a capital gains tax exemption for public sector companies that are privatized. In particular, where a public sector company is divided with certain land and assets going to the government, the transaction would be exempt.
The second amendment relaxes the requirements for the addit…