No targeting of FPIs, higher tax on all super-rich, says government
5 years, 6 months ago

No targeting of FPIs, higher tax on all super-rich, says government

Live Mint  

New Delhi: Amid a backlash from foreign portfolio investors over the new tax, the government on Tuesday said it is not targeting FPIs by raising tax on super-rich individuals, and foreign investors have an option to convert into a corporate entity to avail of lower rates available to such category. For an individual earning total income of more than ₹5 crore, the long-term capital gains tax rate would go up from 12% to 14.25%, while short-term capital gains rate would increase from 17.9% to 21.4%. Even though option to invest as company is available, many FPIs have chosen trust route to enjoy less tax or zero tax through tax havens like the Cayman Islands and Luxemburg, where numerous global funds do create corporate entities to set up a separate structure for each class of fund to be invested, the source said adding through trust structure they enjoy tax avoidance in their countries. "Giving them further lower surcharge rate as compared to our domestic investors would be discriminatory to the domestic investors and would not be a level playing field as for as the tax structure is concerned.

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History of this topic

India Expects to Surpass Rs 22 Lakh Cr Direct Tax Target
1 month, 3 weeks ago

India Expects to Surpass Rs 22 Lakh Cr Direct Tax Target

Deccan Chronicle  

New Delhi: The government on Monday said that it would exceed the Rs 22 lakh crore direct tax collection target set for the current fiscal year. As per the latest data released by the tax department between April 1 and November 10, net direct tax collection has grown 15.41 per cent to Rs 12.11 lakh crore, including net corporate tax …

Finance ministry looks to widen tax base in FY21 budget
5 years, 2 months ago

Finance ministry looks to widen tax base in FY21 budget

Live Mint  

New Delhi: The finance ministry is examining ways to widen the tax base in the FY21 Union Budget by plugging loopholes in the law, especially in areas of tax exemptions and concessional tax schemes. A government official, who spoke on condition of anonymity, said policy makers will leverage the immense amount of data that the direct and indirect tax authorities …

Govt plans rejig in personal tax slabs to boost spending
5 years, 3 months ago

Govt plans rejig in personal tax slabs to boost spending

Hindustan Times  

The government is considering rationalising personal income tax rates in a move that will result in the increase of disposable incomes, especially among the middle class, and hopefully drive consumption and, therefore, growth, two government officials said on condition of anonymity. Government officials have been working on simplifying archaic income-tax laws and rationalising tax rates in line with recommendations of …

7 key takeaways from Nirmala Sitharaman's just announced new taxation laws
5 years, 3 months ago

7 key takeaways from Nirmala Sitharaman's just announced new taxation laws

India TV News  

Friday brought the much-awaited news for the manufacturing sector and corporates in India. In a bit to give the slowing economy a stimulus, Finance Minister Nirmala Sitharaman announced that the government has brought in the Taxation Laws Ordinance 2019 to make certain amendments in the Income-tax Act 1961 and the Finance Act 2019. Indiatvnews.com brings to you 7 major announcements …

FPI surcharge rollback has not created differential regime between FPIs, domestic investors: CBDT
5 years, 4 months ago

FPI surcharge rollback has not created differential regime between FPIs, domestic investors: CBDT

India TV News  

The government's rollback of enhanced surcharge on select investors, announced as part of a series of measures to boost the economy last week, has not created a differential regime between FPIs and domestic investors, CBDT said in statement on Wednesday. Finance Minister Nirmala Sitharaman on Friday announced the withdrawal of enhanced surcharge on short-term and long-term capital gains earned by …

Cabinet may relax FDI in retail, okay ordinance to roll back FPI surcharge
5 years, 4 months ago

Cabinet may relax FDI in retail, okay ordinance to roll back FPI surcharge

India TV News  

The Union Cabinet in its meeting on Wednesday would take up proposals to relax foreign direct investment in various sectors, including single-brand retail and digital media, as announced by Finance Minister Nirmala Sitharaman in her maiden Budget last month. The cabinet chaired by Prime Minister Narendra Modi may also consider approving an ordinance to roll back surcharge on foreign portfolio …

Government clarifies on FPI, experts say benefits limited
5 years, 4 months ago

Government clarifies on FPI, experts say benefits limited

India TV News  

Soon after Finance Minister Nirmala Sitharaman announced to roll back higher surcharge on foreign and domestic portfolio investors, the Income Tax department on Saturday clarified that the tax payable at normal rate on the business income from the transfer of derivatives to a person other than Foreign Portfolio Investments will be liable for the enhanced surcharge. "The derivatives are not …

Higher surcharge on gains from equity withdrawn for foreign, domestic investors
5 years, 4 months ago

Higher surcharge on gains from equity withdrawn for foreign, domestic investors

Live Mint  

New Delhi: Finance minister Nirmala Sitharaman on Friday announced the government’s decision to scrap the increase in surcharge on the income tax outgo for both domestic as well as foreign investors that came into effect as part of the second full year budget of 2019. “In order to encourage investment in the capital market, it has been decided to withdraw …

Big relief for markets as Nirmala Sitharaman rolls back tax surcharge on FPIs
5 years, 4 months ago

Big relief for markets as Nirmala Sitharaman rolls back tax surcharge on FPIs

India TV News  

Addressing a press conference, Finance Minister Nirmala Sitharaman Friday announced the rollback of the controversial tax surcharge on the Foreign Portfolio Investment, which was announced in the Budget last month. "The enhanced surcharge levied by Finance Act, 2019 on long and short term capital gains tax is being withdrawn," Sitharaman said during a special media briefing. Speaking on the US-China …

Govt considers exempting foreign investors from super-rich tax: Report
5 years, 4 months ago

Govt considers exempting foreign investors from super-rich tax: Report

Live Mint  

The government may withdraw the higher tax surcharge on foreign portfolio investors, Bloomberg reported, citing an unnamed government official. Finance Minister Nirmala Sitharaman will hold a press briefing at 5 pm today, a government spokesman said, amid expectations that the government would announce steps to revive economic growth. Indian markets are down about 10% from their June highs after Finance …

Super-rich tax: All eyes on Nirmala Sitharaman ahead of crucial FPI meet
5 years, 5 months ago

Super-rich tax: All eyes on Nirmala Sitharaman ahead of crucial FPI meet

New Indian Express  

NEW DELHI: Concerned over the non-stop slide in the equity markets and the massive erosion in market capitalisation, the government has called for a crucial meeting at 4 p.m. on Friday with Foreign Portfolio Investor Representatives in North Block. In a major relief to Foreign Portfolio Investors hit by the budget proposal to levy a higher surcharge on income tax, …

Why super-rich sulking over super-hike in tax rates is bunkum; someone ought to foot the bill anyway
5 years, 5 months ago

Why super-rich sulking over super-hike in tax rates is bunkum; someone ought to foot the bill anyway

Firstpost  

The higher tax charges will apply to individuals and domestic investors in the said income brackets as well. Whatever social welfare schemes followed in the next five years and into the second term—free pension to small traders/farmers, free universal healthcare, endless farm loan waivers, and interest-free credit—confirmed this approach. Increased burden of social sector spending and low revenue inflows left …

FM Nirmala Sitharaman shrugs off pleas by FPIs on super-rich tax
5 years, 5 months ago

FM Nirmala Sitharaman shrugs off pleas by FPIs on super-rich tax

Live Mint  

The super-rich tax is here to stay for a large section of foreign portfolio investors, with Union finance minister Nirmala Sitharaman ignoring their pleas while proposing further tax relief for startups and non-bank lenders. In amendments to the Finance Bill proposed to Parliament and passed by the Lok Sabha on Thursday, Sitharaman added more safeguards against tax evasion. The Bill …

FM Nirmala Sitharaman shrugs off pleas by FPIs on super-rich tax
5 years, 5 months ago

FM Nirmala Sitharaman shrugs off pleas by FPIs on super-rich tax

Live Mint  

The super-rich tax is here to stay for a large section of foreign portfolio investors, with Union finance minister Nirmala Sitharaman ignoring their pleas while proposing further tax relief for startups and non-bank lenders. In amendments to the Finance Bill proposed to Parliament and passed by the Lok Sabha on Thursday, Sitharaman added more safeguards against tax evasion. The Bill …

Explainer: Will taxing the super rich affect foreign investment inflows?
5 years, 5 months ago

Explainer: Will taxing the super rich affect foreign investment inflows?

India Today  

The government’s budget proposal earlier this month to increase taxes on those with annual incomes of more than Rs 2 crore has rattled many foreign portfolio investors. The realisation that the new tax likely applies to the trusts through which many foreign investors put money into Indian financial markets sent stocks plunging last week. The surcharge increases the effective tax …

Budget impact: FIIs sell nearly Rs 3,000 cr in 6 sessions
5 years, 5 months ago

Budget impact: FIIs sell nearly Rs 3,000 cr in 6 sessions

India TV News  

Foreign Institutional Investors have pulled out nearly Rs 3,000 crore after the Budget proposed a higher surcharge on the super-rich impacting most FPIs. Those with an annual income of between Rs 2 crore and Rs 5 crore would be levied a surcharge of 25 per cent from 15 per cent previously. For those earning Rs 5 crore or more annually, …

$42 billion wiped off Indian stocks as doubts on tax linger
5 years, 6 months ago

$42 billion wiped off Indian stocks as doubts on tax linger

Live Mint  

It’s an old saw of India’s budget documents -- the devil lies in details of the fine print. “An investment vehicle -- such as a category III alternative investment or an FPI -- taxed at a fund level is likely to get affected as the income may easily exceed 50 million rupees,” said Vaibhav Sanghavi, co-chief executive officer at Avendus …

No targeting of FPIs; higher tax on all super-rich including Indian residents: Finance Minister
5 years, 6 months ago

No targeting of FPIs; higher tax on all super-rich including Indian residents: Finance Minister

India TV News  

Amid a backlash from foreign portfolio investors over the new tax, the government on Tuesday said it is not targeting FPIs by raising tax on super-rich individuals, and foreign investors have an option to convert into a corporate entity to avail of lower rates available to such category. However, some 40 per cent of the FPIs automatically come under the …

Government to soon issue clarification on applicability of surcharge on FPIs: CBDT chief P C Mody
5 years, 6 months ago

Government to soon issue clarification on applicability of surcharge on FPIs: CBDT chief P C Mody

India TV News  

CBDT Chairman P C Mody on Monday said the government will soon issue a clarification on the increase in tax rate on foreign portfolio investors to allay their concerns. There were concerns that the increased surcharge on super-rich could also affect foreign funds investing in India since a same tax structures apply for individuals, Hindu Undivided Family and Associations of …

Highest personal I-T rate in India still lower than in China, US, South Africa
5 years, 6 months ago

Highest personal I-T rate in India still lower than in China, US, South Africa

India TV News  

Justifying raising of tax incidence on the super-rich, the finance ministry said the highest tax rate in India was still lower than many countries, including the US and China, and it was a worldwide phenomenon to ask the super-rich to pay extra tax. Revenue Secretary Ajay Bhushan Pandey sought to justify the Budget proposal to increase the surcharge on super-rich …

Budget 2019: Surcharge rate on income tax increased for super-rich
5 years, 6 months ago

Budget 2019: Surcharge rate on income tax increased for super-rich

Live Mint  

Super-rich will have to contribute more towards tax collection. So in total there will be four surcharge slab and rates, beside the above mentioned two new rates, the existing rates are—10% for those with total income between ₹50 lakh and ₹1 crore, 15% for those with taxable income between ₹1 crore and ₹2 crore. Current highest rate of applicable income …

Effective income tax rate goes up for super-rich. Details here
5 years, 6 months ago

Effective income tax rate goes up for super-rich. Details here

Live Mint  

Finance Minister Nirmala Sitharaman today presented the first Budget of the Modi 2.0 government. According to the Budget proposals, income tax surcharge on individuals having taxable income above ₹2 crore will have to pay higher surcharge, thus leading to higher effective tax rate for them. Earlier, tax payers with taxable income between ₹50 lakh and ₹1 crore lakh had to …

Relief likely for middle class, super-rich to face higher taxation: Pre-budget survey
5 years, 6 months ago

Relief likely for middle class, super-rich to face higher taxation: Pre-budget survey

India Today  

A pre-budget survey conducted by KMPG India suggested that a majority of responders want tax exemption limit for individuals to be increased from the current Rs 2.5 lakh. Out of the total number of participants, at least 74 per cent felt the tax exemption threshold of personal income tax would be hiked by the government from the existing Rs 2.5 …

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