India's Big Move To Attract Foreign Investment Amid Iran War: Sources
https://ift.tt/S0OoMx8 The central government has taken a major step to promote foreign capital inflows into the country and mitigate the adverse effects of the Iran war on the economy, according to sources. The Union Cabinet, led by Prime Minister Narendra Modi, has reportedly approved an ordinance amending the Income Tax Act. The ordinance, as per sources, will completely eliminate capital gains tax on investments made by foreign portfolio investors (FPIs) in Indian government securities (G-secs). It will be implemented after Presidential approval. Currently, foreign investors pay a 12.5 per cent long-term capital gains (LTCG) tax on bonds and listed shares held for more than 12 months. In addition, they also pay a 20 per cent withholding tax on interest earned on government bonds. Follow Markets Live Updates Significantly, the government eliminated the 5 per cent concessional rate on this in 2023. However, this year, foreign investors have pulled out a massive Rs 2.5 lakh...