Budget 2021: Suggestions on taxation of capital gains
3 years, 11 months ago

Budget 2021: Suggestions on taxation of capital gains

Live Mint  

In this article I wish to give some suggestions to the Finance Minister to make the taxation of capital gain more rational by removing some anomalies. Even you can claim this rebate against your tax liability on short term capital gains from listed equity shares or equity oriented schemes on which STT has been paid i.e. Logically it should be allowed on listed shares and equity units which are otherwise given preferential treatment as regards rate of tax payable on capital gains and holding period requirement for making them long term. However short term capital gains on listed equity shares and equity schemes are taxed at a flat rate of 15% even if his total income does not exceed the limit of ₹5 lakh where the regular slab rate is 5%. This is an anomaly which needs to be removed by providing that short term capital gains on equity shall not be taxed at a rate higher than the marginal slab rate applicable to the taxpayer.

Tax Equity Capital Capital Gains Period Term Rate Months Short Term Short Gains Long Term 24 Months Holding 36 Months Listed Equity Shares Equity Schemes Section 87 This Rebate 2021 Suggestions Holding Period Requirement  gains  rate  months  budget  short  taxation  term  holding  equity  period  tax  capital  2021  suggestions

History of this topic

Reeves warned against ‘perilous’ pension and capital gains tax rises
3 months, 2 weeks ago

Reeves warned against ‘perilous’ pension and capital gains tax rises

The Telegraph  

Rachel Reeves has been warned of the “perilous” impact of increasing pensions and capital gains taxes, as economists claimed this would damage living standards, discourage saving and harm growth. It said that launching a blanket raid on capital gains would also backfire, with tax increases acting as an “ever-greater drag on saving and investment”. ‘Jumbled tax system’ The IFS said: …

Budget 2024: Taxation related to capital gains in equity market transactions will affect you— THIS is how
5 months, 2 weeks ago

Budget 2024: Taxation related to capital gains in equity market transactions will affect you— THIS is how

Live Mint  

Proposed tax changes by Finance Minister include higher rates for capital gains on equity investments and increased STT on derivative transactions. Buyback shares to be treated as dividends, affecting cash flow of small shareholders Finance Minister Nirmala Sitharaman has proposed drastic changes in capital gains taxation. {{^adFree}} {{/adFree}} Increase in the tax rate and enhanced tax-free amount of long-term capital …

Budget 2023: Why investors wish for easing in long term capital gains?
1 year, 11 months ago

Budget 2023: Why investors wish for easing in long term capital gains?

Live Mint  

Simplification in the tax structure such as long-term and short-term capital gains are some of the tax reliefs investors are hoping for in the upcoming Budget of 2023. However, Vijayakumar added that one reform that is overdue is the simplification of the capital gains tax regime which is presently very complex with different rates for different assets and different holding …

From tax rebate to hike in standard deductions: Salaried, middle-class get avenues to save more
5 years, 11 months ago

From tax rebate to hike in standard deductions: Salaried, middle-class get avenues to save more

Firstpost  

With the intent of reducing tax burden on the middle-class and salaried individuals, the finance minister proposed a number of tax benefits. Earlier, the tax rebate under Section 87A of Rs 2,500 was available to resident individuals whose total income did not exceed Rs 3.5 lakh per annum. Now it is proposed to increase the rebate to Rs 12,500 for …

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