Relief for FPI

Finance Minister Arun Jaitley said the Foreign Portfolio Investor (FPI) Category I & II will be exempt from indirect transfer provision under the Income Tax Act.

Besides, indirect transfer provision shall not apply in case of redemption of shares or interests outside India as a result of or arising out of redemption or sale of investment in India which is chargeable to tax in India.

This will remove apprehensions over taxation upon transfer of stake of investors of India-based funds located abroad but investing in India-based companies, he added.

These were part of a slew of reliefs in the Government’s continuing policy towards providing an environment of “Ease of Doing Business” in Budget 2017-18. fii-news.com