(Shutterstock)The budget proposal to include certain categories of foreign portfolio investors (FPIs) within the ambit of a higher surcharge may force them to rethink their India investment strategy. If the steep surcharge on income comes into effect, FPIs will surely weigh the fresh tax blow against their return on investment. They will now have to pay higher taxes on both their short-term (STCG) and long-term capital gains (LTCG). It mentioned association of persons (AOPs) apart from individuals and HUFs as entities that will have to pay the higher tax. Many overseas pension funds and mutual funds who are long term investors in equities are non-corporate entities,” Swamy said.

Source: The Telegraph July 08, 2019 20:17 UTC