Govt rolls back higher surcharge tax on FPIs

Finance Minister Nirmala Sitharaman on Friday announced the govt will roll-back enhanced surcharge levied on long-term & short-term capital gains. The Minister also said the withdrawal of enhanced surcharge on Foreign Portfolio Investors (FPIs).

The actions are widely expected to revive weak sentiment in the Indian equity market. Data indicated the FPIs have pulled out Rs.23,000-Cr from Indian markets in July&August, as the Budget proposal to add a surcharge on higher tax-income groups affected 40pc of FPIs, operating as trusts or Adjusted operating profits, and made investment in Indian equities unattractive.

Prior to the address of the FM, Indian shares re-bounded to end higher today, after 3 sessions of falls, amid hopes of a fiscal stimulus to revive growth in Asia’s third-largest economy.

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