Government exempts capital gains tax on FPI investment in G-Secs
The Indian government has exempted foreign institutional investors (FPIs) from the 12.5% long-term capital gains tax on government bonds. This policy change aims to attract global capital and align Indian tax regimes with international standards.
Why it matters
This fiscal adjustment is a strategic move to stabilize the rupee and encourage foreign investment in Indian debt markets.
The Government of India (GoI) on Friday (June 5, 2026) waived the 12.5% long term capital gains tax (LTCG) charged on foreign institutional investment in government bonds.
The article provides a factual breakdown of government policy and market data.
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