🇮🇳📈 What is FPI in Income Tax? A Fresh Angle on Foreign Portfolio Investment and Its Tax Implications
Foreign investment is often romanticized as a driver of economic growth. But beneath the polished reports and glowing headlines lies a critical question for many taxpayers, policy-watchers, and finance professionals: What is FPI in income tax? Instead of defining it in isolated tax terms, let’s dig deeper and explore Foreign Portfolio Investment (FPI) from the angle of how governments balance foreign capital with national interest through taxation . 💸🌐 Understanding FPI: More Than Just Money Across Borders At its core, FPI or Foreign Portfolio Investment refers to the investment made by foreign individuals or institutions in a country’s financial assets , such as stocks, bonds, or mutual funds, without gaining direct control over companies . It's different from FDI (Foreign Direct Investment) , where investors typically take a controlling interest. But in terms of income tax , FPI becomes a hotbed of regulation, reporting, and compliance . According to the Income Tax Act o...