Excess surcharge paid by FPIs to be adjusted in future tax payments

Foreign portfolio investors (FPIs), who have been paying higher surcharge in the past two months on remittance of gains in the form of advance tax, will pay less going forward. The payment of tax will reduce to the extent of excess surcharge paid by the FPIs in the past, said experts.

The higher tax paid would depend on the quantum of individual FPIs’ selling during the past two months and the gains realised. Between July and August, FPIs sold shares worth about Rs 30,000 crore. 

A higher surcharge for trusts and non-corporate entities was announced in the Union Budget, which