Investors may find it hard to dodge India's plan to tax the super rich

The government has maintained that it is not specifically targeting overseas investors and that the increase in surcharge applies to individuals and entities

Overseas investors may struggle to circumvent India’s plan to tax the very rich as the option proposed by the tax authorities to sidestep the levies isn’t easy to implement.

With frightened investors wiping off Rs 2.9 trillion  ($42 billion) from the benchmark S&P BSE Sensex since the budget on July 5 through Wednesday, tax officials have suggested that global funds convert themselves from trusts -- a structure followed by several foreign funds that invest in India -- to corporates as a way to avoid paying the higher surcharge.

The devil’s in the detail. “Under General Anti-Avoidance Rules, tax authorities can question the