scorecardresearch
Follow Us:
Friday, May 14, 2021

Enhanced surcharge on foreign portfolio investment removed: Nirmala Sitharaman

Earlier this month, capital market participants and foreign institutional investors presented a charter of demands to Sitharaman, which included rollback of surcharge on FPIs and review of dividend distribution tax.

By: PTI | New Delhi |
August 23, 2019 7:13:43 pm
indian economy, indian economy growth, nirmala sitharaman, finance minister nirmala sitharaman, nirmala sitharaman press conference, niti aayog, rajiv kumar niti aayog, rajiv kumar on indian economy, economy slowdown, Indian Express “The pre-Budget position is restored,” the minister said. It is being done to encourage investment in the capital market, the finance minister said.

Giving in to the demands of overseas investors, Finance Minister Nirmala Sitharaman on Friday announced rollback of enhanced surcharge on foreign portfolio investors levied in the Budget. Surcharge on long and short term capital gains arising from transfer of equity shares has been withdrawn, she said.

“The pre-Budget position is restored,” the minister said. It is being done to encourage investment in the capital market, the finance minister said.

The decision taken in the Budget to levy enhanced surcharge had spooked the stock markets. Following the increase in surcharge in the Budget, the effective income tax rate for individuals with taxable income of Rs 2-5 crore went up to 39 per cent from 35.88 per cent and for those above Rs 5 crore to 42.7 per cent.

Earlier this month, capital market participants and foreign institutional investors presented a charter of demands to Sitharaman, which included rollback of surcharge on FPIs and review of dividend distribution tax.

Sitharaman further said that to mitigate genuine difficulties of startups and their investors, it has been decided to withdraw angel tax provisions for them. A dedicated cell under a member of CBDT too will be set up for addressing the problems of startups.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
Advertisement
Advertisement
Advertisement
Advertisement
x