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Foreign Investors Exempted From GSec Capital Gains Tax

Created at 5 Jun · 5:46 AM1 source↑ Market-relevant
IN SHORT

Foreign investors in government securities (GSecs) will be exempt from capital gains tax starting April 1, 2026. The ordinance also grants similar tax exemptions to the Bank for International Settlements (BIS).

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Key Numbers

April 1, 2026Effective date for tax exemptions

Who's Involved

Foreign Investors
Beneficiaries of capital gains tax exemption on GSecs
Bank for International Settlements (BIS)
Also granted similar tax exemptions

↳ Why This Matters

This exemption aims to make Indian government securities more attractive to foreign investors, potentially increasing demand and lowering borrowing costs for the government. It could also signal a more favorable environment for foreign capital inflows into the country's debt markets.

Key facts

  • Foreign investors in government securities (GSecs) will be exempt from capital gains tax.
  • The exemption takes effect from April 1, 2026.
  • The Bank for International Settlements (BIS) also receives similar tax exemptions.

An ordinance has been passed to exempt foreign investors from paying capital gains tax on their investments in government securities (GSecs). This significant policy change is set to take effect from April 1, 2026. In addition to foreign investors, the ordinance also extends similar tax exemptions to the Bank for International Settlements (BIS). This move is expected to attract more foreign capital into the government debt market.

Frequently asked questions

The ordinance exempts foreign investors from capital gains tax on their investments in government securities (GSecs).

The changes will take effect from April 1, 2026.

Yes, the Bank for International Settlements (BIS) is also granted similar tax exemptions.

What Happens Next

01Implementation of the tax exemption on April 1, 2026.

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How It Developed

5 Jun · 4:51 AM
Government exempts foreign investors and BIS from capital gains tax on GSecs from April 1, 2026.
NDTV via PiQSuite

Sources

T1
Government Exempts Foreign Investors From Capital Gains Tax On GSecsm.piqsuite.com

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