Market Watch
News

How are FPIs trying to avoid India tax hit

FPI Surcharge Getty Images
1/8
FPI Surcharge
At least 30 big-ticket foreign portfolio investors (FPIs) have reached out to their advisers, seeking advice for converting themselves from trusts and association of persons into corporates to avoid the extra tax on the super-rich.

Here is a bird’s eye view on the situation:
Budget raised surcharge on AOPs (Association of Persons)Getty Images
2/8
Budget raised surcharge on AOPs (Association of Persons)
Leading FPIs reached out to advisers on shift from trusts/AOPs to corporate structuresGetty Images
3/8
Leading FPIs reached out to advisers on shift from trusts/AOPs to corporate structures
About 40% FPIs invest as trustsGetty Images
4/8
About 40% FPIs invest as trusts
However, lawyers are not in favour of conversion, Getty Images
5/8
However, lawyers are not in favour of conversion,
Lawyers fear such a move could attract General Anti-Avoidance Rules (GAAR)Getty Images
6/8
Lawyers fear such a move could attract General Anti-Avoidance Rules (GAAR)
Such transfers through exchanges have STT and capital gains implications Getty Images
7/8
Such transfers through exchanges have STT and capital gains implications
Govt favours conversion. However, it has questioned use of trustsGetty Images
8/8
Govt favours conversion. However, it has questioned use of trusts
Text Size:AAA
Markets Data

*

Success
This article has been saved