Capital market players are hoping for a slew of changes that will make life easier for them in terms of taxation. Here are a few expectations
Puneet Wadhwa explains what the markets are hoping for in Budget 2020
Wants holding period for computing long-term gains reduced to one year
The abolition of the DDT is one of the long-pending demands of market players as it leads to double taxation
Suggests rejig of 20% and 30% slabs of personal income tax
In a post-market hours press briefing today evening, Finance Minister Nirmala Sitharaman withdrew the enhanced surcharge on long and short-term capital gains
Govt to infuse upfront Rs 70,000 crore into public sector banks to enable release of Rs 5 trillion liquidity in the market
However, SEBI does not specify the credit profile of the funds
Those earning Rs 2-5 crore will pay effective LTCG of 26% and those earning less than Rs 5 crore will have to pay LTCG of 28.5%
Those earning Rs 2-5 crore will pay effective LTCG of 26%; those earning Rs 5 cr-plus will have to pay LTCG of 28.5%
Listed shares received through family succession or will of the deceased and acquired till January 31 will not attract STT
The finance ministry had received various representations demanding removal of LTCG tax
80% of the top 500 stocks above their Jan 31, 2018 price
Also, the off-market transactions undertaken by non-residents in line with FDI guidelines, qualified institutional buyers, venture capitalist without payment of STT too could avail the 10% LTCG rate
New tax on equities applicable on only 14% shares at the end of first half of FY19
Seek clarity for gains made in IPO share sales
In the 2018-19 budget, the government had after a gap of 14 years reintroduced 10 per cent tax on long-term capital gains exceeding Rs 1 lakh from sale of shares
Finance Minister Arun Jaitley, in his budget speech, had announced LTCG tax of 10 per cent on equity gains beginning February 1, 2018 - on gains exceeding Rs 100,000
Keeping the income tax rates and slabs unchanged, the Budget introduced a Rs 40,000 standard deduction for salaried employees and pensioners
FinMin receives representations demanding withdrawal of LTCG via Finance Bill