Govt plans to soften CG tax blow

The government indicated that indexation may be allowed to reduce the capital gains blow on shares and equity mutual funds in the future to align it with norms for other sectors such as property.

The indexation benefit even with a 20% tax, instead of the concessional 10% proposed in the budget, will result in savings and will especially benefit those who stay invested for long periods.

“Like in the case of immovable property, we have indexation benefit but the holding period is two years and the rate is 20%. We must move in that direction for all classes of assets. Since it was one year only, we didn’t want to give benefit of indexation,” said finance secretary Hasmukh Adhia.

Popular from web