LTCG Tax

Target maturity funds, longer-duration schemes see high demand

Industry expects inflows shrinking in the medium to long-horizon debt funds

This tax was discontinued in 2005, but was reintroduced in 2018 in the Union Budget for that fiscal

The finance ministry is looking at rationalising long-term capital gains tax structure by bringing parity between similar asset classes and revising the base year for computing indexation benefit to make it more relevant, an official said on Friday. Currently, shares held for more than one year attract a 10 per cent tax on long-term capital gains. Gains arising from sale of immovable property and unlisted shares held for more than 2 years and debt instruments and jewellery held for over 3 years attract 20 per cent long term capital gains tax. The revenue department is now looking at rationalising the tax rates as well as holding period for calculating long-term capital gains and an announcement is likely in the 2023-24 Budget to be presented in Parliament on February 1. Also, a change in base year for computing inflation-adjusted capital gains is being contemplated, the official added. The index year for capital gains tax calculation is revised periodically to make it more relevan

According to another expert, whether parking space can be sold depends on the nature of the space concerned. It must conform to the definition of garage, as provided in the RERA.

Reduction in surcharge (capped at 15 per cent) on long term capital gains - is positive from financial markets

Industry players want govt to bring tax parity between Ulips and equity MFs, cut in STT and CTT

The proposal will also encourage domestic financial institutions to see start-ups as an alternative asset class that has been heavily dependent on foreign capital still now

This should apply to investments made through collective investment vehicles such as angel funds, alternate investment funds and investment LLPs

Investors have already swamped the government and Sebi with such demands as stocks of several companies have taken a beating

Stock market benchmark indices had tanked by over 2.5% on the budget day last Saturday. Experts opined that investors were peeved at the absence of any action on LTCG and the shift on DDT.

The new regime is simple, one has to see the exemptions one was taking earlier and compare the new tax rates without those exemptions, the Revenue Secretary said

Capital market players are hoping for a slew of changes that will make life easier for them in terms of taxation. Here are a few expectations

Budget 2020: What does the stock market expect from the Finance Minister?

Puneet Wadhwa explains what the markets are hoping for in Budget 2020

Wants holding period for computing long-term gains reduced to one year

A look at proposed changes in tax laws that could boost the stock market

The abolition of the DDT is one of the long-pending demands of market players as it leads to double taxation

Suggests rejig of 20% and 30% slabs of personal income tax

In a post-market hours press briefing today evening, Finance Minister Nirmala Sitharaman withdrew the enhanced surcharge on long and short-term capital gains

Govt to infuse upfront Rs 70,000 crore into public sector banks to enable release of Rs 5 trillion liquidity in the market

However, SEBI does not specify the credit profile of the funds