Revised DTC and FIIs

The Revised discussion paper on the Direct Tax Code is available here. The discussion paper proposes to characterize the income of FIIs arising from the sale and purchase of shares as "capital gains" (para 3.5). The rationale is based on the reasoning in Fidelity Northstar Fund. I have discussed fidelity here. I shall discuss the other aspects of the Revised Discussion paper in some later posts.