Minimum Alternate Tax (MAT)

Budget 2015: No MAT for FIIs


  1. This move is aimed at rationalizing MAT provisions for FIIs.
  2. The income earned by foreign firms from securities transactions, shall be exempted from MAT.
  3. Foreign investors currently hold over 40% of India’s public shareholding in equity markets.
  4. Currently, foreign investors in India have had to pay 15% on short-term listed equity gains, 5% on gains from bonds, and nothing on long-term gains.