Finance Minister Nirmala Sitharaman on August 23 announced the withdrawal of the tax surcharge on all foreign and domestic portfolio investors.
In her maiden Budget proposal, the Finance Minister had proposed to impose a higher tax surcharge on sale of equity shares by FPIs and domestic institutional investors.
The Budget announcement had led to nervousness among FPIs who had to pay higher tax, and is said to have been among the key reasons for the subsequent fall in share prices. In July, the Indian equity markets bled as FPIs turned net sellers, withdrawing Rs 12,419 crore from the market.
Sitharaman then held consultations earlier this month with stakeholders to hear their grievances, following which the decision was revoked.
News Source:- moneycontrol.com