The fine print of the long term capital gains tax seemed to apply only to domestic investors, sparking fears that foreigners may be taxed retrospectively on gains. “As far as grandfathering and the limit for levy of tax is concerned it applies to both residents and non-resident investors,” Adhia said. India in July 2004 abolished long-term capital gains tax on shares and replaced it with a securities transaction tax. The government decided to retain the securities transaction tax (STT) despite the move to tax capital gains. “STT will stay until we come to a regular regime of capital gains tax for every asset class,” Adhia said.

Source: Mint February 02, 2018 15:00 UTC