Govt to clarify whether tax surcharge applies to FPIs, if required: Official

India will clarify whether a tax surcharge aimed at the rich will apply to foreign portfolio investors, but only if required, Chairman of the Central Board of Direct Taxes, P.C. Mody, said on Tuesday.

Finance Minister Nirmala Sitharaman, as a part of her annual budget for the fiscal year 2019-20 last week, proposed to levy a surcharge on those with incomes over 20 million rupees ($291,337.52).

Indian shares fell for the third straight day on Tuesday due to concern that the tax surcharge will apply to the income of foreign portfolio investors. The government has yet to clarify whether that is the case or not.