The funds taking advantage of the provisions have to be registered with capital market regulator Securities and Exchange Board of India (Sebi). Photo: iStockNew Delhi: The government has eased the taxation regime for advisors and fund managers working from India for foreign institutional investors (FIIs), giving them more flexibility to organize their activities without the gains they make on their investments becoming taxable as business income. The taxation regime of these fund managers allow the gains they make on their investments to be subjected to only capital gains tax—and not to be taxed as business income—if they follow certain conditions. The notification also waived off the requirement for members in the fund or their connected persons not to have more than 10% interest in the fund. The funds taking advantage of the provisions have to be registered with capital market regulator Securities and Exchange Board of India (Sebi).

Source: Mint August 05, 2017 13:52 UTC