Business Standard

BS Number Wise: A case for taxing India's rich on stock market profits

As economic inequality in the country widens, crorepatis pay very little on long-term capital gains


Sachin P Mampatta Mumbai
Billionaire Warren Buffett, in a column written more than a decade ago, famously pointed out that he is taxed at a lower rate than his secretary is.

This is because he earned most of his income from stocks. The money he made from the rising value of shares is called capital gains, income from which is often taxed at a rate lower than salaries. Buffett called for higher taxes on the super-rich, noting that he paid 17.4 per cent while his employees on average paid 36 per cent.

India’s capital gains tax is 10 per cent for shares held

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First Published: Jan 28 2022 | 9:11 PM IST

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