Modi Govt plans to remove capital gains tax on FPI investments in G-Secs according to Report. Currently, foreign investors pay a 12.5% long-term capital gains tax on listed shares and bonds held for over 12 months, along with a 20% withholding tax on interest from government bonds. Tax Exemption Possible on FII Investment in G-Secs as Government May Bring Ordinance. The Currently, 20% withholding tax applies on G-Secs. Tax Relief Likely for FIIs in G-Secs currently attract 20% withholding tax and 12.5% capital gains tax. Foreign Investment Amid Iran War. 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. Post navigation Firhad quits Mayor post, ED summons Abhishek:Agency reaches TMC leader’s residence in ongoing primary recruitment scam probe The ‘High-Tech, High-Touch’ Bureaucrat: IAS Shri Rajat Bansal Emerges as Key Pillar in Chhattisgarh’s Growth Story
