Taxing proposition

Capital gains tax needs committee-level deliberations

The approach of the Union Budget inevitably raises the question of taxation, including capital gains tax. In the last week of November, the month that signals the start of the budgeting exercise, representatives from industry bodies met Union Finance Minister Nirmala Sitharaman to request rationalising the capital gains tax regime. This is not an unreasonable demand. Capital gains tax in India has been among the most complex regimes that is frequently altered and tinkered with in line with the economic policy outlook of the government. The rates and holding periods differ for different asset classes in confusing profusion. For instance,