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Invested in or considering investing in India funds, taxation policy change...Sensex update

catch22catch22
edited May 2015 in Fund Discussions
The India related funds have been weak for the past several weeks; somewhat, perhaps related to profit taking from the previous run in prices.
A note from the article: "India plans to raise about $6.5 billion (Dh24bn) by taxing foreign firms for capital gains they made in previous years."
This article relates some new information relative to taxation of investments towards some organizations, which may of value for your investment decisions.

Regards,
Catch

Comments

  • Sven
    India plans to raise about $6.5 billion (Dh24bn) by taxing foreign firms for capital gains they made in previous years."
    Don't think that move would encourage foreign investment.
  • CrashCrash
    I ran into that in a news story, too. Retroactive taxes. That's not going to be popular with foreign investors. On what basis, I wonder?
  • Sven
    @Crash,
    For mutual fund investors, don't they already paid "foreign tax" as reported in 1099-DIV?
  • CrashCrash
    edited April 2015
    @Sven. Hi! I have noted that tax statements from my foreign funds show credit for foreign tax paid, but I don't think that means it HAS to be so, or that the credit you're given for foreign tax paid represents ALL taxes due on profits from foreign companies you own through a fund. Did that come out correctly? Even though you may be credited for some foreign tax paid, there may still be some tax due. When you're talking taxes, things quickly get over my head. Sorry. Maybe someone else can help us out.
  • JohnChisum
    edited April 2015
    I thought the foreign tax paid by mutual fund investors became a credit towards regular taxes? Or if not, just something that has to be declared? I remember something of this sort when I held shares in The Japan Fund back in the 90's.
  • CrashCrash
    edited April 2015
    Yes, the tax statement will show foreign tax paid, and you can credit it against total taxes due in the USA. I've seen that on my Matthews statements over the years, and maybe Seafarer. But I was trying to say that I do not believe that "foreign tax paid" as it appears on the tax statement necessarily means you've paid all that's due "on that score," already. (Like getting "qualified" or "non-qualified" domestic dividends. Whatever that means.)
  • BenWPBenWP
    Whatever the reason, my Indian position has swooned this week.
  • catch22catch22
    edited April 2015
    Hi @BenWP
    How are you using the word, "swooned" regarding your Indian investment position?
    Meaning?
    Thanks,
    Catch
  • JohnChisum
    edited April 2015
    MINDX took quite a dip this past week or so. Edit: Actually a couple of weeks. Check out the chart. One month.


    http://finance.yahoo.com/q?s=MINDX
  • catch22catch22
    An update for May 12 market actions in India, for your consideration.

    10 Reasons why the Sensex dropped 600 points

    Note: we do not have any direct investments in this area, at this time.
  • beebee
    edited May 2015
    BBRY ( or BB which are Canadian shares) had a big day yesterday (up over 6%) on little news other than a facelift for the Leap phone (a popular phone in India). My losses in BBRY (-80%) have been as close to my gains in MINDX. Funny to think India may reignite the BB brand.

    POAGX (M* 5 star Gold Primecap fund) lists BB as one of it's top ten holdings.
  • JohnChisum
    There is also a rumor floating around that Apple may buy Blackberry. Why is another question
  • BenWPBenWP
    @catch22: I meant swooned as in dropped. My recent play on the Indian market through INCO has been notably unsuccessful. I know…I'm early.
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