Indian companies that witness any indirect transfer of assets will now have to lay bare minute details of their holdings to Income Tax Department . The government has unveiled a new stringent reporting framework to plug the gap in the system, after tax authorities faced trouble in sourcing information in a number of high-profile tax cases, dealing with indirect transfers. The rules prescribe that information and documents are required to be maintained and furnished to the tax authorities by an Indian entity whose shares are indirectly transferred. Tax experts say companies will have to prepared for exhaustive disclosures. "This information is required to be kept for eight years," said Rajesh Gandhi, partner at Tax, Deloitte Haskins & Sells LLP.

Source - http://economictimes.indiatimes.com