Capital gains

Simplifying taxes will improve collection

One of the welcome highlights of the Union Budget on Tuesday was simplifying the structure of capital gains tax. Union Finance Minister Nirmala Sitharaman announced short-term capital gains on certain financial assets would be taxed at 20 per cent as against 15 per cent earlier. All other financial and non-financial assets would continue to attract the applicable rate. This meant short-term gains in the stock market would now attract a tax liability of 20 per cent. Further, long-term gains from all financial and non-financial assets would now attract 12.5 per cent tax. Long-term capital gains tax on