The Indian government on Thursday exempts foreign investors from minimum alternative tax (MAT) levied on income from securities transactions, royalties and technical services.

However, FIIs will be eligible for MAT exemptions only when normal tax rate is below 18.5%, said the Finance Minister Arun Jaitley. The government has not provided any relief from retrospective tax ruling.

The Finance Minister has also relaxed the rules for the application of MAT for real estate investment trusts.