Sebi Proposes Dropping 12.5% Tax on Foreign Investors
Sebi, the market regulator, has recommended removing the 12.5% long-term capital gains tax on foreign investors. It also seeks relief for mutual funds, according to a report. The suggestion comes ahead of Budget 2027, so the government will decide whether to act on it. Until then it remains only a recommendation.
Context
Context: Long-term capital gains tax is charged on profits from investments sold after holding them for a longer period. Foreign investors have paid this tax on Indian equity gains, and Union Budgets, usually presented in February, are where such tax changes are typically announced.
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