India exempts foreign bond investors from capital gains tax to attract capital and support rupee
By
Priyanka Salve
A second-rack bagel that's nearly first-rack. Tasty stuff.
Summary
India has exempted foreign investors and the Bank for International Settlements from income tax on interest and capital gains from bonds, effective April 1, 2026. This move aims to attract foreign portfolio investments and shore up the rupee amid record foreign capital outflows. The exemption removes the 12.5% long-term capital gains tax and 20% withholding tax that foreign investors previously faced on listed shares and bonds held for over 12 months.
Key quotes
· 3 pulledIndia is doubling down on measures aimed at attracting foreign portfolio investments, as foreign capital outflows hit a record high.
The government on Friday announced that it has exempted foreign investors and the Bank for International Settlements from income tax on any interest or capital gains.
The exemption will take effect from April 1, 2026, as per the government's release.
You might also wanna read
Analysis: Grocery consumption tax cut risks undermining Japan's fiscal stability
The article argues that cutting consumption tax on groceries in Japan could backfire by undermining confidence in the country's fiscal healt
SpaceX's Texas Move Won't Stop California From Taxing Its IPO Windfall
SpaceX moved its headquarters from California to Texas, but its upcoming IPO will still generate significant tax revenue for California. Thi
forbes.com·4d ago
How billionaires minimize taxes through financial structuring
The article discusses how billionaires can structure their financial affairs to minimize taxes, using the example of a billionaire founder o
econ.st·5d ago
Santander CEO Ana Botín criticizes UK bank taxes as economically senseless
Santander CEO Ana Botín criticizes the UK's bank taxes, arguing they unfairly single out banks despite already paying ~30% corporate tax and
Survey: 60% of family offices plan major portfolio shifts, reducing U.S. exposure for emerging markets
A UBS Global Family Office Report survey reveals that 60% of family offices plan major strategic changes to their investment allocations in
cnbc.com·16d ago
UK Chancellor Reeves amends PE tax regime, targeting oil and gas firms first
UK Chancellor Rachel Reeves has announced plans to amend the tax regime for overseas permanent establishments (PEs) of UK-based companies. T
newsbeep.com·17d ago