Capital Gains Tax Relief

CBDT raises Cost Inflation Index to 376 for FY26, offering tax relief on capital gains for assets bought before July 23 2024. New rules reduce indexation scope under Finance Act 2024

Tax relief should target pre-packaged term and health policies, ensuring availability to seniors and those with impaired health, thereby reducing their costs

Market pundits also expect some changes in the tax treatment of gains arising from trades in the futures & options (F&O) segment

Expectations (as measured by pre-budget equity market performance), wrote analysts at Morgan Stanley in a note, are important in determining what the market does immediately after the budget

Capital gains taxes can range from 10 per cent to as high as 30 per cent, depending on the holding period, which spans from one to three years

The ace fund manager was reacting on 'X' to a Business Standard story that quotes a Reserve Bank of India (RBI) data on gross FDI flows into the country in FY24

All eyes now on how the govt manages its finances

Nonetheless, lower tax rates mean a direct push to earnings and so to their return ratios, and hence more room for valuation re-rating

The condition being that the Indian assets should exceed Rs 10 crore and represent at least half the value of all assets held by the foreign investor