Market News
FIIs exempt from G-Sec taxes from April 2026
Published 2026-06-05 · Bazaar Watch Research
- The government exempted FIIs and FPIs from taxes on interest income and capital gains from government securities.
- This exemption, effective April 1, 2026, eliminates LTCG (12.5%), STCG (20%), and withholding tax on G-Secs.
- The move aims to make Indian sovereign debt more attractive and improve post-tax returns for global investors.
- It also seeks to ease pressure on the Indian rupee, which depreciated 7% in 2026 amid FII equity outflows.
- Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs)