Mumbai, June 5 -- In a bid to attract dollar inflow, the government has scrapped long-term capital gains tax on investments made by foreign institutional investors (FIIs) in government securities through an Ordinance issued on Friday. The Ordinance has brought changes in the Income Tax Act to provide the exemption. The government has decided to remove the capital gains tax on G-secs to attract long-term, patient capital because these instruments have a longer tenure.

Published by HT Digital Content Services with permission from Capital Market....