Govt Removes Enhanced Surcharge on FPIs, Angel Tax for Startups
Giving in to the demands of overseas investors, Finance Minister Nirmala Sitharaman on Friday, 23 August, announced the rollback of enhanced surcharge on foreign portfolio investors (FPI) levied in the Union Budget.
Surcharge on long- and short-term capital gains arising from the transfer of equity shares has been withdrawn, she said. “The pre-Budget position is restored,” the minister said.
It is being done to encourage investment in the capital market, the finance minister said.
The decision taken in the Budget to levy enhanced surcharge had spooked the stock markets.
Earlier this month, capital market participants and foreign institutional investors presented a charter of demands to Sitharaman which included the rollback of surcharge on FPIs and the review of dividend distribution tax.
A dedicated cell under a member of CBDT too, will be set up for addressing the problems of startups.
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