India committed to providing tax exemptions to the buyer of IDBI Bank.

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According to one of the officials, the federal finance ministry is considering relaxing a tax clause that would force the buyer of IDBI Bank to pay additional tax if the share price rose after the final bid. The official, share prices tend to rise after the government invites financial bids, and it would be "unfair" to compel the new buyer to pay tax on any price increases from the time bids are put until the time the transaction is completed. Again when the government gets initial offers from buyers indicating interest, the Reserve Bank of India will review them to see if they match the central bank's "fit and appropriate" standards. Two government sources indicated on Tuesday that the Indian government is likely to waive several tax rules for the buyer of IDBI Bank in order to attract more bidders for a majority stake sale in the lender, after the Centre extended the deadline for opening offers.