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FIIs meet Finance Ministry officials, pitch for reduction in withholding tax rates
December, 12th 2012

Foreign institutional investors have pitched for a reduction in the withholding tax rates on their investments in Indian debt and simplification of know your customer norms to attract foreign capital into the country.

"FIIs gave their feedback on improving inflows into the debt and equity markets... They made suggestions on reduction in withholding taxes for wider array of instruments and also sought," a finance ministry official said after a meeting called by his ministry. A 10% withholding tax is applicable on foreign investment in debt, which investors want halved, said an executive with an investment firm who attended the meeting

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