new Delhi. If you have been investing in the stock market, then the Finance Ministry has given a big update for you. Actually, the government has no intention of changing the Capital Gains Tax Structure. This statement of the Finance Ministry came after media reports, which said that in the next budget, the government can change the capital gains tax structure.
Clarifying the government’s stand, sources in the Finance Ministry said that the central government has no plans to change the capital gains tax structure at the moment. Sources have rubbished reports that the government wants to reform the capital gains tax structure to increase its earnings and increase spending on welfare schemes.
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Know what the Finance Ministry said
Quoting two officials related to the matter, the report said that in a proposal presented before the Finance Ministry in this regard, it has been said that the tax on income from capital market should not be less than the tax on income from business. Needed. This will affect entrepreneurship as well as employment. In view of this, there was talk of a change in the structure, which has been rejected outright by the Finance Ministry.
There is so much tax in the country
10 per cent Long Term Capital Gains Tax is payable on gains above the limit of Rs 1 lakh on equity listed in India for more than one year. At the same time, short term capital gains at the rate of 15 percent are to be paid on the shares held for less than one year. This provision is applicable in the country from April 1, 2019.
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The current structure is complicated
Last month, Revenue Secretary Tarun Bajaj had said the government was open to a detailed review of the existing capital gains tax structure, but was of the view that its provisions require a serious review. He had said that the government is ready to change various rates and holding period for computing capital gains tax on shares, loans and immovable property. The main reason for this is to simplify the structure.
Tags: finance ministry, stock market, Tax
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