Budget relief on indirect transfer tax possible for FPIs

Govt might exclude those in Categories I & II

It appears the coming Union Budget might give relief to foreign portfolio investors (FPIs) from taxation on indirect transfers.

Sources aver the so-called category-I and- II FPIs would be kept out of the provisions. The latter could be made applicable only in those cases where the transfers have amounted to a change in control.

Many representations have come from foreign investors that the circular earlier issued in this regard could lead to triple taxation. Last week, the Central Board of Direct Taxes (CBDT) had put the circular in abeyance for the time being.

“It was a temporary fix and if