Suspense Crime, Digital Desk : The government has been concerned about foreigners continuously selling stakes in the stock market. Perhaps this is why it plans to give relief to foreign investors in several ways, including on LTCG tax. The government is expected to make announcements, including cuts in the tax rate and removal of caps in owning certain bonds to attract foreign investment, according to sources aware of the developments cited in a report by Bloomberg.The reduction in the tax levied by global funds on bonds in the country could be taken up by the cabinet on Wednesday, the sources said. However, no statement was made after the cabinet meeting.How much will the tax deduction on bonds be?Tax cuts are under consideration, said sources. They also said that the 20 per cent tax on bond earnings would either be completely scrapped or taken to a negligible level. The sources requested anonymity because the discussions are private.Besides the above, certain long-term government papers may also be thrown open for investment, where there will be no restriction on foreign investors acquiring them, RBI may also announce certain new such papers. There was a change on this list of government papers in 2024, when 14 and 30-year bonds were removed from it.However, the Ministry of Finance or the RBI has so far not responded to the issue. In the last month, Bloomberg News said India was considering cutting taxes after being recommended to do so by the RBI.
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