-
Feb 03, 2025
-
Long-term capital gains tax on all FII income hiked to 12.5 pc
After raising the long-term capital gains (LTCG) tax on listed equity shares, equity-oriented mutual funds and units of business trusts sold by foreign institutional investors (FIIs) to 12.5 per cent in the previous year’s Budget, the Finance Bill 2025 has proposed to hike the LTCG tax on income from certain remaining securities from 10 per cent to 12.5 per cent from April 1, 2026.
While the rates of taxation in the case of specified fund or FIIs in the case of long-term gains referred to in section 112A have been brought to parity with the rates applicable for residents, the rate of income-tax calculated on the income by way of LTCG not referred to in section 112A were retained at 10 per cent vide Finance (No.2) Act, 2024, according to the Finance Bill 2025.
|