India proposes easing compliance for offshore funds with Indian teams
India is looking to shake up its tax rules so offshore investment funds managed by Indian teams don't have to jump through as many hoops.
Right now, these funds need a huge minimum size, lots of investors, and strict contribution limits; otherwise they could face a hefty 38% tax on profits linked to India.
The new draft bill would drop those requirements, making it way simpler for global investors to work with Indian fund managers and hopefully bring more international money into the country.
Indian investor involvement capped at 5%
Under the new plan, there are still safeguards (like capping Indian investor involvement at 5% and keeping these funds from running businesses in India), but overall things get much more straightforward.
Tax expert Girish Vanvari says this will cut down risks for offshore funds using Indian managers, while PwC's Nehal Sampat thinks it'll make life easier for foreign investors looking at India.