INDIA's Ministry of Finance (MoF) is considering rationalizing of securities transaction tax rates. An indication to this effect is available in the in the latest financial system-focused country report issued by International Monetary Fund (IMF).

The report captioned ‘ India: Financial System Stability Assessment Update' says:

“ Market participants expressed concerns about the taxation framework, in particular the existence of a securities transaction tax with different percentages for different asset classes, which can distort the natural development of the markets. The authorities informed that MoF has initiated a review of such tax with a view towards rationalization of securities transaction tax percentages.”

The report says that Indian Government is sorting out issues involved in proposed implementation of new international accounting norms in the country.

According to the report, the country is moving toward convergence with (rather than adoption of) International Financial Reporting Standards (IFRS). IFRS equivalent standards have been notified by the central government and Institute of Chartered Accountants of India (ICAI) has suggested April 2013 for implementation. Some differences with IFRS remain, and the authorities' intention is to initiate a dialogue with the International Accounting Standards Board to address such differences.