Measures in Budget 2020 to encourage long-term investments into India

Increasing corporate bond market participation from 5% to 15% of outstanding bonds will enable larger global funds into triple A credit.

In the backdrop  of high expectations, the finance minister has provided a significant impetus to investors by addressing some of their long-pending concerns.  

Abolishing the dividend distribution tax (DDT) as been on the wishlist of companies, especially foreign investors. This will be advantageous to investors as they can claim treaty benefit of lower rate of tax (10-15%).  Also, they can now claim foreign tax credit in their home country for tax paid on dividend in India.  For domestic investors, especially those in the highest tax bracket, this may lead to a significant tax burden and therefore, the government must look at