Sovereign Wealth Funds Secure LTCG Tax Benefits on Indian Investments

In a significant move to attract foreign investment, India has granted Long-Term Capital Gains (LTCG) tax benefits to Sovereign Wealth Funds (SWFs) investing in the country. This decision, announced in the recent Budget 2024, aims to boost foreign capital inflow and stimulate economic growth. SWFs can now enjoy a preferential tax rate of 12.5% on long-term gains from investments held for over 12 months, compared to the previous 20% rate. This tax incentive is expected to make India a more attractive destination for global institutional investors, potentially leading to increased foreign direct investment in key sectors.
Source: Business Standard