Budget impact: 'TDS provisions for FPIs on dividend'is welcome change'
"As per expectation, the Finance Minister has given a boost to spending in healthcare and infrastructure sector in this year’s budget. The budget has also put emphasis on a stable tax regime and not introduced any new tax, major change in the taxation structure to ensure that there are no surprises for the long term investors. Few reforms for ease of doing business in India have also been announced which will be an added opportunity to attract interest from foreign investors. Another welcome change by the foreign investors is changing the TDS provisions for FPIs on dividend. This was a pain point for some time, and it is a positive move to enable deduction of tax at lower treaty rate. Additionally, FDI in the insurance sector has been raised from 49% to 74%. This will also help to attract the flow of capital to the insurance sector and thus benefitting the overall economy,” says Anuja Bhargava, Head of General Counsel Operations, Fidelity International.
The quote was originally published in www.financialexpress.com in February 2021.
The opinions expressed are author's own. Fidelity International is not responsible for the author's opinions.