Foreign investors may have another big tax related relief coming their way on the minimum alternative tax (MAT) front.
The Centre may soon exempt such investors from MAT levy on the interest income that they earn from investments in fixed income securities.
This exemption will however be available only on a prospective basis.
Simply put, interest income earned on fixed income securities may get excluded for the purpose of MAT levy, sources said.
A provision to this effect may be introduced when the Finance Minister Arun Jaitley moves the amendments to the Finance Bill in the coming days, they said.
Jaitley had in the recent budget provided a huge benefit to foreign portfolio investors by announcing that MAT would not apply to them with effect from April 1, 2015 as regards the capital gains earned by such investors.
Now, this exemption is expected to be extended to coupon (interest) earned on fixed income securities as well.
srivats.kr@thehindu.co.in