FinanceMint
FPIs not exempt: Centre clarifies 12.5% LTCG tax on equity is same as for domestic investors
in5points
The Centre clarified that FPIs are not exempt from the 12.5% LTCG tax on equity investments.
Both FPIs and domestic investors continue to pay the same 12.5% LTCG tax on Indian equities.
The exemption announced through the Income-tax Ordinance, 2026, applies only to FPIs investing in Government Securities (G-Secs).
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