Brief by Shorts91 Newsdesk / 04:24am on 04 Jun 2026,Thursday India Global
The Union Cabinet, led by Narendra Modi, has reportedly approved an ordinance to amend the Income Tax Act and eliminate capital gains tax on investments made by foreign portfolio investors in Indian government securities, pending Presidential approval. The move aims to attract foreign capital, strengthen forex inflows and cushion the economy from uncertainties linked to the Iran conflict. Currently, foreign investors pay 12.5% long-term capital gains tax on eligible assets and a 20% withholding tax on government bond interest. The decision follows significant foreign outflows from Indian markets and comes amid indications that additional measures may be introduced to boost investment and market confidence. (PC: NDTV)
