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Finance Bill 2025 removes indirect investment tracking for offshore funds, boosts India's appeal for global fund managers

The Finance Bill 2025 has introduced significant changes to the taxation and regulatory framework for offshore funds investing in India, aiming to enhance the country's appeal to global fund managers. Key among these changes is the removal of the requirement for indirect investment tracking, which previously mandated offshore funds to report detailed ownership structures to ensure compliance with Indian tax laws. This amendment simplifies the compliance process for foreign investors, reducing the administrative burden and potentially attracting more foreign capital into India. The move is seen as a strategic effort to position India as a more investor-friendly destination amidst global economic shifts, particularly as investors seek alternatives to traditional markets like China. Additionally, the bill addresses concerns about the retrospective application of tax laws, providing clarity and stability to investors. These reforms are expected to boost India's financial market by making it easier for offshore funds to invest without the fear of unforeseen tax liabilities or complex regulatory hurdles.

Read the Full Moneycontrol Article at:
[ https://www.moneycontrol.com/news/business/economy/finance-bill-2025-removes-indirect-investment-tracking-for-offshore-funds-boosts-india-s-appeal-for-global-fund-managers-12977490.html ]