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Sebi Backs Removal of LTCG Tax for Foreign Investors: Report
- The Securities and Exchange Board of India recommended the government scrap the long-term capital gains tax for foreign investors to galvanize underachieving equity markets.
- Foreign investors sold a record $31 billion in Indian stocks this year as the Nifty 50 index declined 4.8% over two years while the MSCI emerging market index rose 40%.
- Investors currently pay 12.5% long-term capital gains tax and 20% on short-term gains; brokerage firm IIFL estimates removing these levies could improve foreign investor returns significantly.
- SEBI also proposed that switching between domestic mutual fund schemes should not be treated as a taxable sale if units are held for more than one year.
- These recommendations are not binding, with a final decision resting with the government ahead of the annual federal budget, following two years of SEBI consultation with foreign investors.
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Sebi backs removal of LTCG for foreign investors: Report
The Securities and Exchange Board of India (SEBI) has also proposed tax relief for domestic mutual fund investors, suggesting they be exempt from LTCG if they are selling existing holdings to invest in new ones, the sources said.
·New Delhi, India
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Total News Sources24
Leaning Left0Leaning Right5Center4Last UpdatedBias Distribution56% Right
Bias Distribution
- 56% of the sources lean Right
56% Right
C 44%
R 56%
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