Now PE investors should stop cribbing as govt has tried to compensate them by reducing the Long Term Capital Gains from 20% to 10%. Other announcements related to issue made by Finance ministry are as listed below:
- India will exempt long-term capital gains on the sale of unlisted securities in initial public offerings (IPO) from tax
- It proposes to levy a 0.2 percent security transaction tax on the sale of unlisted securities.
Moreover the GAAR concerns has been addressed as government has deferred the introduction of measures to crack down on tax evasion, by one year. Who says India govt is not listening as they have listened to the concerns expressed by foreign investors.