Unhappy with surcharge, private market investors bat for tax parity

Private market investors are miffed on not being considered for a waiver on surcharge on capital gains as was extended to foreign portfolio investors (FPIs) last week.

Last Friday, the Union finance minister had cancelled the enhanced surcharge levied on long-term and short-term capital gain for FPIs, and for domestic portfolio investors.  

This move has widened the tax gap between listed and unlisted shares. The tax rate on long-term capital gain (LTCG) from the stock market is 11.9 per cent, while gains from start-up investment is taxed at 28.5 per cent, says Ritesh Banglani of Stellaris Venture Partners. “This differential tax treatment