No clarification over FPI surcharge needed at present, says FM Sitharaman

There is no apparent basis to tax FPIs organised in different legal forms

Confusion continued on Monday over the government’s stand on the applicability of increased surcharge on foreign portfolio investors (FPIs), a move in the Budget that is likely to impact long-term money coming through mutual funds and pension funds. 

While Finance Minister Nirmala Sitharaman said after the RBI board meeting in the capital that there was no need for any clarification on the additional tax burden, CBDT Chairman P C Mody said on the sidelines of an Assocham event in Delhi that the matter was being examined and a clarification could be issued soon. Several industry bodies, which represent portfolio investors