A non-resident Indian group led by the Hindujas has sought lower capital gains tax for NRI investors on short-term gains in Indian stock markets, on a par with foreign institutional investors.
In a pre-budget memorandum submitted to finance minister Pranab Mukherjee, the IndusInd International Federation (IIF) said sugh benefits would enable NRIs to increase investments in the country and make the country their global hub over the long run.
Capital gains made by foreign financial institutions, mostly based in Mauritius, are tax exempt, while NRIs are required to pay tax at the rate of 10 per cent on their short-term gains in the equity markets.
"The treatment of taxation on short-term capital gains needs to be on par for both FIIs and NRIs," said the NRI grouping.
The IndusInd International Federation (IIF), headed by S P Hinduja, has Ram Buxani (UAE), K Sital (Hong Kong), Nari Pohani (US), Vashi T Purswani (Thailand) and Kamal Fabiani (Spain) as members.
IIF said an NRIs is a `national asset" and would like to make India their permanent home after retirement.
"The Indian tax authorities should not tax the income derived from interest on their investments in savings and pension plans in foreign institutions and foreign countries," the IIF said.