UAE NRIs weigh investment options as India plans stock tax changes
Dubai: UAE-based NRIs who own Indian shares face uncertainty over how much tax they will pay when they sell after Finance Minister Nirmala Sitharaman said she would consider investors’ concerns about stock market levies. She gave no indication of which tax the government might change or whether any relief would cover shares investors already hold. Speaking at an event this week, Sitharaman…
Dubai-based non-resident Indians (NRIs) who own Indian shares are uncertain about the potential tax implications when they sell, following Finance Minister Nirmala Sitharaman's remarks. Sitharaman acknowledged the concerns expressed by retail investors amid a prolonged selloff and said she would consider all the issues raised. Foreign investor withdrawals and weaker equity markets have contributed to the pressure behind calls for a review of stock market levies, Bloomberg reported.
India's equity markets have been among Asia's worst performers this year, lagging behind emerging-market peers. Sitharaman noted that India had recently started attracting foreign inflows again, despite recent outflows. The Ministry of Finance had increased equity tax rates in July 2024, raising the long-term rate from 10% to 12.5% and short-term from 15% to 20%.
However, Sitharaman pointed out that the current situation is different due to the growing challenges and increased outflows of foreign institutional investors (FIIs). UAE NRIs hope for lower taxes on their India investments, as the effect on them would depend on the specific tax changes implemented.
Written by urgent.news from Gulf News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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