Cushioning the blow

Taxation regime for capital gains from equities needs a relook

The Union government is reportedly planning to tweak the tax norms for gains from equities in this year’s Budget. This is a sensible move as the time has come for taking a relook at the present system of an individual not being required to pay any tax on gains from equities if the shares are held for a period of more than a year. Though this demand emerged from several quarters in the run-up to some earlier Budgets as well, the government has been ignoring it on the grounds that a differential tax treatment is required in order to encourage