• February 4, 2023

Foreign Portfolio Investors In India To Pay Higher Tax On Debt Securities: Report

Foreign Portfolio Investors In India To Pay Higher Tax On Debt Securities: Report
Share

New Delhi:

Foreign portfolio investors will lose a preferential tax rate on interest from Indian government securities and corporate and foreign currency bonds, a senior tax official said on Saturday.

Foreign portfolio investors have been enjoying a lower 5% tax on interest earned on bonds since 2013, making investments in the country more attractive. Ending this treatment would require them to pay a 20% tax on interest income from July 1.

“It has not been extended,” Central Board of Direct Taxes chairman Nitin Gupta told Reuters. “Our view point is that it was a revenue foregone by the government

“We have certain tax treaty with any jurisdiction which permits the Indian government to deduct tax at a certain rate. We had foregone that right. It was helping the other government, and the other jurisdictions,” Gupta said in an interview.

The exemption does not benefit any Indian company, he said.

Gupta said regular registration by charitable trusts will help India in gathering data of beneficial owners, and comply with standards from the Financial Action Task Force, a global money laundering and terrorism watchdog.

The task force, reviewing India this year, is “much concerned about trusts because it becomes a route… for illegal activities, money laundering,” he said.

India’s $550 billion budget, unveiled on Wednesday, proposes a series of changes for charitable trusts that include regular registration to access tax benefits.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Featured Video Of The Day

Fitch Says No Immediate Impact On Adani Ratings Following Short-Seller Report



Source


Share

Related post

FPIs take out ₹58,711 crore from equities in October on geopolitical crisis, strong Chinese stocks

FPIs take out ₹58,711 crore from equities in…

Share  According to the data, FPIs made a net withdrawal of ₹58,711 crore from equities between October 1…
FPIs inject ₹27,856 crore in equities in September so far on U.S. rate cut expectations

FPIs inject ₹27,856 crore in equities in September…

Share Foreign Portfolio Investors (FPIs) have infused ₹27,856 crore in domestic equities in the first fortnight this month,…
Foreign Portfolio Investors inject Rs 10,980 crore in first week of September – Times of India

Foreign Portfolio Investors inject Rs 10,980 crore in…

Share NEW DELHI: Foreign Portfolio Investors infused Rs 10, 980 crore in the first week of September, according…