I-T dept sends notices to Mauritius-based foreign portfolio investors: Report

So far in April, foreign investors have pulled out Rs 31,575 crore from the country's equity markets

Mauritius-based foreign portfolio investors are under the lens of Income tax department for claiming tax benefits under the India- Mauritius treaty, a report by Business Standard said on April 15.

More than half a dozen Mauritius-based FPIs have received notices from the tax department for their tax residency certificates, the newspaper said citing sources.

Moneycontrol could not independently verify the report.

The report further said that some of the FPIs have not provided any permanent place of business, while the others have received notices to recover taxes on their derivative incomes.

So far in April, foreign investors have pulled out Rs 31,575 crore from the country's equity markets, in the wake of turbulence emanating from sweeping tariffs imposed by the US on most nations, including India.

This came following a net investment of Rs 30,927 crore in the six trading sessions from March 21 to March 28. This infusion helped reduce the overall outflow for March to Rs 3,973 crore, according to data from the depositories.