ANNOUNCEMENT 24 Aug 2019
A surcharge applicable on high taxable income has been withdrawn for capital gains on the transfer of derivates by FPIs.
NUMBER OF INTERVENTIONS
Official Press Release - Government withdraws enhanced surcharge on tax payable on transfer of certain assets
24 August 2019
On 24 August 2019, the Indian Ministry of Finance has withdrawn the levy of a surcharge on the capital gains tax payable on the transfer of Derivatives (Futures and Options) by Foreign Portfolio Investors (FPIs). The surcharge will continue to be applicable to the gains from the transfer of such Derivates by any person other than FPIs.
Taxes payable on income are subject to a surcharge of 25% or 37% if the taxable income is above INR 2 billion or above INR 5 billion respectively. The applicable tax rates were 15% or 25% but were enhanced in the 2019-2020 budget.