The Funds has raised the tax on long-term capital positive aspects (LTCG) for listed bonds, debentures and listed choice shares to 12.5 per cent from 10 per cent for overseas institutional buyers in step with listed shares and fairness oriented mutual funds.
“It was seen that whereas the charges of taxation within the case of specified fund or FIIs in case of long-term positive aspects referred to in part 112A have been delivered to parity width the charges relevant for residents, the speed of income-tax calculated on the earnings by the use of long run capital positive aspects not referred to in part 112A have been retained at 10 per cent vide Finance Act, 2024,” the Funds doc stated.
Part 112A offers for LTCG tax on the sale of listed fairness shares, equity-oriented mutual funds and enterprise belief. The speed of tax on these listed securities was raised to 12.5 per cent from July 23, 2024 for positive aspects exceeding ₹1.25 lakh.
Sunil Gidwani, Associate, Nangia Andersen, stated: “Final 12 months when the LTCG tax charges have been modified for residents, the tax charges for FPIs on shares, fairness mutual funds and enterprise trusts have been modified to 12.5 per cent, too. However LTCG on different property corresponding to G-secs, bonds and NCDs have been not noted, maybe inadvertently, and continued to be taxed at 10 per cent. That is sought to be corrected.”
