New Delhi, Jan. 28 -- The US-India Strategic and Partnership Forum (USISPF) in its pre-budget recommendation has urged the government to rationalise corporate tax rates for foreign companies.

It said that the rate for foreign companies, including banks be reduced to bring parity and sought to rationalise tax for new manufacturing companies.

Urging India to simplify capital gain tax reforms, USISPF sought harmonising holding periods and rates of different instruments.

In their budget presentation to Union Finance Minister Nirmala Sitharaman, the advisory body has also asked to extend the concessional tax regime to Foreign Portfolio Investment (FPI) from investment in securities.

USISPF has also suggested tax incentives to specific sect...