In today’s ET, news states that Finance Ministry may propose Capital gains tax relief for Global Debt Investors in Budget 2022. 

As far as short-term capital gains tax is concern it can range between 30%-40% where as long term would be 10%.  Also, benefits are available in respective tax treaties which can provide complete exemption w.r.t. capital gains on debt securities.

My view is Indian Debt Markets are still lucrative and can offer better interest rates etc. in upcoming years. To ease out things from long term perspective and have level playing field we can expect some relief in phase manner. 

Given the above, to start with, there may be an exemption from ‘Long term’ Capital gains for Global Debt Investors. Also, one can expect some relief from the perspective of IFSC

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