Why Finance Minister Waived Income Tax for Foreign Investors but Not You!? Dr. MRUNAL PATEL explains

📡 👩🏻‍🏫 Tonight, 6th Jun, Saturday, 9PM Night my Next Monthly Economy Current Affairs Free Live Class ⛓️‍💥 URL https://unacademy.com/class/mrunals-economy-monthly-current-2026-may-for-upsc-prelims/V9KMKN5V DESCRIPTION: Dr. Mrunal Patel | UPSC Educator and Economy Subject Expert June 2025: Parliament not in session. Government passed a Presidential Ordinance amending the Income Tax Act, retrospectively from April 1, 2025. Two tax categories waived for FPIs investing in Government Securities: 1. Income Tax on Interest: FPIs faced up to 20% withholding tax on G-Sec coupon payments. Now fully waived. 2. Capital Gains Tax: FPIs selling G-Secs in the secondary market faced 12.5-20% tax on profits. Now fully waived. This exemption is for FPIs only, NOT resident Indian taxpayers. WHY: FPIs withdrew Rs 30 lakh crore from Indian markets in both 2025 and 2026, selling shares, bonds, and G-Secs. Each exit converts rupees to dollars, weakening the rupee. To reverse this capital flight and stabilize the exchange rate, government offered targeted tax relief on G-Secs. FPI INVESTMENT LIMITS: Up to 30% of outstanding Central Government Securities; separate limits for State Government Securities. Watch the full May 2025 Economy Current Affairs class on Unacademy, Saturday 9 PM. Install the Unacademy app, search Mrunal Patel, and join the free pre-class. Income Tax exemption to FPI on Government Securities Interest & Capital Gains to attract dollars to India Useful for: UPSC CSE, SSC-CGL, State PSC, Banking, IBPS, RBI Grade B, CAPF, CDS, ACIO, APFC TAGS: FPI tax exemption, foreign investors tax India, government securities India, FPI ordinance 2025, income tax waiver India, capital gains tax waiver, rupee dollar exchange rate, India capital flight, withholding tax FPI, UPSC economy shorts, Win26, PCB15, RBI Grade B economy, UPSC GS3 economy, mrunal economy, UPSC current affairs 2025, economy current affairs, SSC CGL economy, IBPS economy, economic survey India