Modi Govt likely to withdraw higher surcharge on FPIs

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The government is likely to announce a slew of market-friendly changes including withdrawing of surcharge on income of foreign portfolio investors (FPIs), removing of long-term capital gains (LTCG) tax after a holding period of three years and easing of dividend distribution (DDT) tax, ET NOW reported on Thursday, quoting government sources. The report pushed the BSE Sensex 634 points higher and helped the NSE Nifty top 11,000-mark at the close. “The government may withdraw higher surcharge for FPIs via notification or ordinance,” the report added.

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    Modi Govt likely to withdraw higher surcharge on FPIs

    The government is likely to announce a slew of market-friendly changes including withdrawing of surcharge on income of foreign portfolio investors (FPIs), removing of long-term capital gains (LTCG) tax after a holding period of three years and easing of dividend distribution (DDT) tax, ET NOW reported on Thursday, quoting government sources. The report pushed the BSE Sensex 634 points higher and helped the NSE Nifty top 11,000-mark at the close. “The government may withdraw higher surcharge for FPIs via notification or ordinance,” the report added.

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    Watch Modi Govt likely to withdraw higher surcharge on FPIs With HD Quality

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  • Watch Sensex rallies 637 pts as govt may withdraw FPIs higher surcharge; Nifty reclaims 11,000-mark Video
    Sensex rallies 637 pts as govt may withdraw FPIs higher surcharge; Nifty reclaims 11,000-mark

    Equity benchmark indices staged a smart recovery during second half of trading on Thursday with the Nifty closing above 11,000 mark. The market rallied after reports suggested that the government is likely to roll back the recently-imposed higher tax on foreign portfolio investors (FPIs). The introduction of a surcharge on higher income brackets announced in the Budget by Finance Minister Nirmala Sitharaman has led to a brisk selloff by FPIs. At the closing bell, the BSE S&P Sensex was up 637 points or 1.74 per cent at 37,327 while the Nifty 50 edged higher by 177 points or 1.63 per cent to 11,032.

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    Prime Minister Office (PMO) and finance ministry’s top bureaucrats on Thursday held discussions over the suggestions and submissions by foreign portfolio investors (FPIs) regarding the surcharge issue, sources told ET NOW on Friday. The sources said that the PMO took stock of tax surcharge and its impact of the stock market and FPIs. FPIs have sought roll back of surcharge, as a confidence boosting signal from the Modi government. According to ET NOW, FPIs through law firms have conveyed to the finance ministry that it is impractical to convert trusts into companies. Sources say that PMO may tweak if not rollback surcharge.

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