India’s federal budget proposes an increase to capital gains tax rates payable by foreign individuals who invest in public and non-public Indian securities.

The increases, which if enacted will be retroactive to 1 April 2019, include:

1. taxes on long-term capital gains on sales of equity and debt securities, currently taxed at a maximum of 11.96 per cent, rising to 14.25 per cent;
2. tax on short-term capital gains on sales of equities on Indian exchanges rising from 17.94 per cent to 21.37 per cent, including securities transaction tax; and
3. short-term capital gains on sales of debt securities and off-exchange sales of equity securities being taxed at 42.74 per cent instead of the current 35.88 per cent. ...