- Government tax settings in the latest budget.
- Central government sets long-term capital gains tax rates and reviews tax policies during the annual budget exercise.
Industry Consults on Long-Term Capital Gains Tax Ahead of Budget
What happened
Industry bodies participated in a consultation regarding Long-Term Capital Gains Tax (LTCG) ahead of the pre-budget review with Revenue Secretary Arvind Shrivastava. LTCG is considered a major budgetary proposal this year. Foreign Portfolio Investors are strongly demanding that the tax be abolished for them, while some industry representatives support this view. Due to revenue concerns, there is also discussion around implementing a graded reduction in LTCG.
From indiatimes.com
Why it matters
The discussion is gaining momentum amid stagnant stock market indices and negative returns for Foreign Portfolio Investors due to a weak rupee. The Centre previously scrapped the 12.5% LTCG tax on FPI investment in government securities in June as a strategy to support the rupee. The government is balancing FPI demands with the claims of domestic investors, such as mutual funds and retail investors.
Central government sets long-term capital gains tax rates and reviews tax policies during the annual budget exercise.
From indiatimes.com