Need tax parity for Indian, foreign investors in listings abroad: Experts

Domestic investors selling shares of an Indian company listed overseas are taxed at 20 per cent.

The government must remove tax disparity between domestic and foreign investors selling shares of an Indian company listed abroad, experts have said.

Tax for a foreign investor selling securities in an unlisted company or a company listed on an overseas exchange is same: such transactions are taxed at 10 per cent. However, domestic investors selling shares in an Indian company listed overseas are taxed at 20 per cent.

The demand for parity was made amid media reports that the government is finalising norms for overseas direct listing. It is reportedly considering two proposals to tax foreign investors of Indian companies listed overseas: