Hike in surcharge collateral damage for FPI inflow: CBDT

Today's Latest

India is the fastest growing market in the world for paper

New Delhi Sept 18 (ANI/NewsVoir): With a growth rate of 6-7 per cent, India is the fastest growing...

Cabinet approves blanket ban on e-cigarettes

New Delhi, Sep 18 (IANS) The Union Cabinet on Wednesday approved a blanket ban on e-cigarettes in the country with...

Vande Bharat train will debut this Navaratri season

New Delhi (India), Sept 18 (ANI): Union Minister of Railways, Piyush Goyal on Wednesday informed that the trial run...

Popular Today

CJI says, Ayodhya dispute will conclude on or before Oct 18

New Delhi , Sept 18 (ANI): Chief Justice of India, Ranjan Gogoi on Wednesday said that submissions in the...

Govt may announce more fiscal measures to spur demand

New Delhi, Sep 17 (IANS) Finance Minister Nirmala Sitharaman is set to announce more fiscal measures in the coming days,...

Trains to be more silent and eco-friendly with HOG system

New Delhi, Sep 17 (IANS) Travelling in trains will become more silent and eco-friendly, as the Indian Railways is going...
India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Hike in surcharge collateral damage for FPI inflow: CBDTNew Delhi, July 10 (IANS) Aiming to assuage the discontent shown by equity market participants on the latest proposal to levy a surcharge on high-income individuals, Central Board of Direct Taxes Chairman P.C. Mody on Wednesday said the proposal was not intended towards the Foreign Portfolio Investors (FPI).

At an industry event here, he clarified that taxation base rate was not changed but it was just the surcharge which has been changed and it affected the FPIs of AIF category-III.

- Advertisement -

“The consideration was that the people who have the higher ability to pay and shell out more for the cause of nation building and those were the people (with income) between Rs 2-5 crore and above… that is why there is the difference in surcharge.

“The base rate was not changed, it was just the surcharge which was changed.. as a collateral damage if you can call it, it affected the FPIs of AIF category-III… There again the option is to go to the corporate structure. I don’t see any kind of differential treatment. Basically the increase in surcharge was just to allow some benefit for the lower end…,” Mody said at a CII event.

The Budget last Friday raised surcharge on the super-rich. Accordingly, 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, the surcharge has been increased from 15 per cent to 37 per cent. With this, the effective tax rate will go up to 39 per cent for those in the Rs 2-5 crore income slab and 42.74 per cent for for those in Rs 5 crore and above group.

Most FPIs earn more than Rs 5 crore in a year and hence would come under the highest income tax bracket. They generally route their investments through trusts and body of individuals in the country’s capital markets.

Commenting on the overall budget 2019-20, Mody said: “This is a very distinctive Union Budget, laying down very clear policy direction and road map for the new India we envisage, heading towards a $5 trillion economy. Ease of tax compliance, both at the policy and process levels, shall promote ease of living, which has been distinctively addressed in the Budget.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

‘Rs 200 cr minimum capital needed for small finance Banks’

Mumbai, Sep 14 (IANS) The Reserve Bank of India's draft guidelines for 'on tap' licensing for 'Small Finance Banks in...

Cabinet approves blanket ban on e-cigarettes

New Delhi, Sep 18 (IANS) The Union Cabinet on Wednesday approved a blanket ban on e-cigarettes in the country with complete suspension of its manufacturing,...

Vande Bharat train will debut this Navaratri season

New Delhi (India), Sept 18 (ANI): Union Minister of Railways, Piyush Goyal on Wednesday informed that the trial run for Vande Bharat Express between...

People in India trust Army the most and polticians the least

New Delhi, Sep 18 (IANS) Over 70 per cent of Indians in urban areas find the armed forces the most trustworthy profession, while a majority...

Innovation at best: Researchers from IIT generate power from textiles

Kharagpur/Kolkata, Sep 18 (IANS) Researchers from IIT Kharagpur have developed a unique approach of generating electricity from clothes drying in natural ambience, which is otherwise...

More Articles Like This