No kidding
India's Crazy Tax on Foreign Funds
With the Vodafone debacle still resonating, the government is targeting investment managers.
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How do you celebrate the fifth anniversary of a colossal mistake? For India's tax department, the answer has to be: Make a new one that's a thousand times worse, then sit back and enjoy the fun.
There can be no other explanation for the "clarifications" the authorities issued before Christmas, instructing fund managers to withhold and pay taxes when investors make a profit selling units in offshore vehicles, if half or more of the investment is in Indian securities.