Budget 2019 had proposed levy of an additional surcharge on individuals and trusts earning more than Rs 2 crore and Rs 5 crore, respectively.
Foreign portfolio investors (FPis) should consider the option of structuring themselves as companies rather than trusts to avoid paying the increased surcharge announced in Budget 2019, Finance Minister Nirmala Sitharaman said, in a discussion on the Finance Bill in the Parliament on July 18.
During her Budget speech, the FM had proposed levy of an additional surcharge on 'individuals' earning more than Rs 2 crore and Rs 5 crore, respectively.However, unlike the Budget speech, the proposal in the Finance Bill 2019 is wider and covers all taxpayers other than companies and partnership firms. Thus, once implemented, this move may adversely impact FPIs which are set up as non-corporate vehicles.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.