New Delhi: Foreign Investors Can Register As Firms To Get Tax Relief says -Nirmala Sitharaman, Minister of Finance and Minister of Corporate Affairs said that foreign investors can register as companies to avoid new tax surcharge imposed on individual taxpayers as well as trust.
New agency Thomson Reuters reported citing Finance Minister Nirmala Sitharaman as saying that Foreign Portfolio Investors (FPI) can register as a company to avoid a new tax surcharge imposed on individual taxpayers as well trusts in the budget for the current financial year begins on 1st April.
She proposed to raise surcharge on the super-rich while presenting the Union Budget for the financial year 2019-2020.
Those with an annual income between Rs. 2 crore and Rs. 5 crores would be levied a surcharge of 25 percent from 15 percent previously.
FPIs which earn more than Rs. 5 Crore in a year would come under the highest income tax bucket. In such condition, most FPIs route their investments through trusts and body of individuals in the country’s capital market.
For those earning Rs. 5 crore or more annually, the surcharge was increased from 15 percent to 37 percent. With this, the effective tax rate will go up to 39 percent for those in the Rs. 2-5 crore income slab and 42.74 percent for those in Rs. 5 crore and above group.
Foreign investors urged the government to rethink its call to extend taxes on the super-rich, together with the next levy on bound teams of portfolio investors, dispute the move can hit the aggressiveness of capital of India markets.
Asset Managers round table of Republic of India (AMRI), a lobby cluster of FPIs, aforesaid the upper tax might affect several massive foreign mutual funds and pension funds, and hit India’s name as a stable tax jurisdiction.
After the Budget proposals of upper surcharges for super made Foreign Portfolio Investors sold-out shares in Indian equity markets value Rs. 1,983.82 crore, knowledge compiled NSDL showed.