A higher levy on debt funds has also been a deterrent, fund managers say, who are seeking parity with stocks
Sebi has proposed scrapping LTCG tax on foreign investors' equity gains and offering tax relief to domestic mutual fund investors who switch between schemes
Sebi has backed a proposal to remove long-term capital gains tax for foreign investors. But what is LTCG tax, which investments does it apply to, and how is it calculated? Here's all you need to know
From a temporary exemption in 2003 to a tax-free regime in 2004, its eventual return in 2018, and now fresh calls for reform, India's equity LTCG policy has undergone several significant changes
The recommendations, which come months before the annual federal budget in February, are not binding and a final call rests with the government
Jefferies says an equity LTCG tax cut could improve FPI sentiment and support the rupee, but warns that the fiscal impact of lower tax collections may limit the scope for relief.
Shankar Sharma has called for lower taxes on fixed-income investments to incentivise them over equity investments.
A higher index means the inflation-adjusted cost of acquiring an asset will be higher than it was in FY26
The move comes amid sustained pressure on the rupee and persistent foreign portfolio outflows, with the exemption set to apply to income earned on or after April 1, 2026
'The higher cost inflation index helps cushion sellers from rising prices, lowering their taxable gains,' say experts, making long-term property sales more tax-friendly.
Govt likely to fix key omission regarding AMT
A recent ITAT ruling offers tax relief for those selling two homes and reinvesting in one, easing capital gain worries, especially for joint owners and middle-class families
Decoded: What is capital gains tax, how do India's rules compare to global standards, and why is it causing investor concerns?
In Budget 2024, FM Sitharaman proposed an overhaul in the capital gains tax regime, including lowering the LTCG tax to 12.5% from 20%
Finance Minister Nirmala Sitharaman on Wednesday said the contentious LTCG tax proposal on real estate is being amended to give option to taxpayers to compute tax liability under the old system or at reduced rates without indexation, and pay the lower of the two. Replying to a debate on the Finance Bill, Finance Minister Nirmala Sitharaman said the rollover benefit will be available to taxpayers who buy new immovable property utilising the capital gains on the sale of old property. The Budget 2024-25 proposal to remove indexation benefit in calculation of long term capital gains on sale of immovable properties evoked sharp criticism from various corners, including opposition parties and tax professionals. The Budget, presented on July 23, had proposed a lower 12.5 per cent rate of LTCG tax, down from 20 per cent, while doing away with the indexation benefit. The major amendment in the Bill relates to restoration of indexation benefit on sale of properties bought prior to July 23, .
In a significant relief to property owners, the government has introduced a new option for calculating long-term capital gains (LTCG) tax.
Effectively gives grandfathering provision for property transactions before July 23
The government has garnered Rs 98,681 crore from long term capital gains tax on listed equities in 2022-23, a 15 per cent growth over the previous year, Parliament was informed on Tuesday. Minister of State for Finance Pankaj Chaudhary gave details of collections from Long Term Capital Gains (LTCG) tax between fiscal 2018-19 and 2022-23 in the Rajya Sabha. The long term capital gains on equities and units of equity oriented mutual funds were brought in from April 2018. Such gains were taxed at 10 per cent, with gains of up to Rs 1 lakh annually being exempted. As per the details shared with the Parliament, Rs 98,681.34 crore was collected from LTCG in 2022-23, up 15 per cent over Rs 86,075.49 crore collected in 2021-22 fiscal. The collection was about Rs 38,589 crore in 2020-21, Rs 26,008 crore in 2019-20 and Rs 29,220 crore in 2018-19. To a question on whether the government is contemplating to abolish the LTCG tax on equities/mutual funds during 2024-25, Chaudhary said, "There i
Income tax changes in Budget 2024: On the personal income-tax front, the tax slab rates have been rationalised only under the new tax regime
Indexation benefits will continue to apply to properties purchased before April 1, 2001, but not to those purchased after that date