FPIs Face 12.5% LTCG Tax on Indian Equities: Centre Clarifies

Foreign Portfolio Investors (FPIs) are subject to a 12.5% LTCG tax on Indian equities, similar to domestic investors. The recent Income-tax Ordinance, 2026, only exempts FPIs investing in Government Securities (G-Secs). This clarification from the Centre ensures that tax regulations remain consistent for all investors in the Indian market.