Robert King Merton, an American sociologist, coined the word “unintended consequences" to describe outcomes that were either not foreseen or intended of a purposeful action. Post the recent budget, foreign portfolio investors (FPIs) and alternative investment funds (AIFs) in India are learning about this phenomenon the hard way. The increase in marginal tax rate for the super-rich will negatively impact them though these vehicles were not the target of the tax increase.
