Government lists Bill in Parliament to replace Ordinance that exempted FIIs from tax

The government listed a Bill in Parliament to replace a June Ordinance that had exempted foreign institutional investors (FIIs) and the Bank of International Settlements from capital gains tax, and from tax on interest earned from their investments in government securities. The Bill seeks to give the Ordinance permanent legislative backing.

Nabka Insight

Replacing an Ordinance with a law, and tax treatment of FIIs, links polity with the economy.

Key facts

Bill replaces an Ordinance introduced in June.
Beneficiaries: FIIs and the Bank of International Settlements.
Exemption from capital gains tax and tax on interest from government securities.

Background

Parliament of IndiaUnderstand →Foreign Institutional Investor (FII / FPI)Understand →

Relevant forSSC · State PSC · UPSC

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