Tax News

The Centre has exempted foreign portfolio investors from paying capital gains tax and withholding tax on government securities through an ordinance effective 1 April 2026, aiming to attract foreign capital and support the rupee.

India approved an ordinance to remove capital gains tax on foreign portfolio investor holdings in government securities, aiming to attract overseas capital as the rupee weakens and equity outflows mount.

India is considering major tax relief and easier investment rules for foreign bond investors, including removing the 20% interest tax and expanding unrestricted access to long-term government securities.