LTCG
Reconsider capital gains tax hike: AMFI releases 6-point demand before Nirmala Sitharaman
AMFI released a six-point budget feedback, requesting changes such as reinstating previous capital gains tax rates and reducing tax on debt mutual funds. They argued that recent tax amendments would deter investors and harm market participation, urging the Finance Ministry for reconsideration to support investment growth.
Big LTCG gains for startups staff holding Esop in secondary deals
The reduction in long-term capital gains (LTCG) tax on unlisted securities announced in the Union budget stands to benefit startup staffers holding employee stock option plans (Esop). Founders and tax experts told ET that employees will gain if their shares are bought by an investor during a secondary funding round.
No change in LTCG in medium term: Revenue secretary Sanjay Malhotra
Revenue secretary Sanjay Malhotra said the government had studied 1.05 million returns for 2023-24 that showed capital gains from land and building. The effective LTCG tax rate on these was 11.54% on real estate in 2022-23, he said. The budget announced removal of indexation benefits for LTCG on properties but slashed the tax rate to 12.5% from 20%, fuelling concerns over an increase in tax burden.
Capital gains tax framework completely overhauled: Changes that can hurt you, measures that can lower your tax
In a paradigm shift, Budget 2024 has completely overhauled the capital gains tax framework.
Govt mopped up Rs 98,681 cr from taxing long term capital gains in listed equities in FY23: M0S Pankaj Chaudhary
The government collected Rs 98,681 crore from long term capital gains (LTCG) tax on listed equities in 2022-23, a 15% increase from the previous year, said Minister of State for Finance Pankaj Chaudhary in Rajya Sabha. The LTCG tax on equities, introduced in 2018, was increased to 12.5% in the 2024-25 Budget. No proposal to abolish LTCG tax is being considered.
New capital gains tax rules on property: Can you add stamp duty, home loan interest amount to property cost to lower LTCG tax?
Budget 2024 has reduced the tax on long-term capital gains arising on the sale of immovable property from 20% to 12.5%, without indexation. Taxpayers took to social media platforms to voice their concerns on how property prices will be calculated to determine long-term capital gains following Budget 2024. Does the Finance Act, 2024, amend the rule to calculate the property's base price? Can you add stamp duty, home loan interest amount to your property's cost while calculating capital gains during sale now? All your queries on new capital gains rules on property answered.
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Budget 2024 tilts tax scale in favour of international mutual funds. Time to go global?
The 2024 Budget introduced changes to the tax structure, reducing the holding period for equity, overseas, and gold mutual funds from more than 36 months to more than 24 months. The long-term capital gains tax rate was also lowered to 12.5%. This made these funds more attractive, though Sebi halted new overseas ETF subscriptions due to investment limits.
The bar for PMS fund managers to please crorepati investors just got higher after Budget
Recent tax changes in the Union Budget have increased capital gains tax rates, complicating the task for PMS fund managers to generate higher post-tax returns compared to mutual funds. Despite a historical trend of outperforming mutual funds, PMS schemes now require higher annual returns to stay competitive. Long-term strategies are less impacted, while short-term focused approaches suffer.
Middle-class, which banged thalis and lit torched on PM Modi's request stabbed by govt in Budget through indexation: Rahul Gandhi
Leader of Opposition Rahul Gandhi criticized the Modi government for removing indexation benefits on LTCG taxation in the new budget, claiming it betrays the middle class who supported Modi during COVID. He likened the current climate of fear to a 'chakravyuh,' asserting that it traps everyone, including BJP MPs, farmers, and workers, and vowed to dismantle it.
A comparative look at India's LTCG rates in tandem with peers like UAE, Singapore, China, USA and others
The Union Budget 2024 significantly altered India's capital gains tax regime. LTCG tax rates rose from 10% to 12.5%, and the indexation benefit was removed. These changes aim to simplify the tax system and align India with global standards, making it a competitive investment destination for domestic and international investors.
I-T dept clarifies acquisition cost of real estate bought before 2001 for LTCG calculations
The Indian Taxation Service (I-T) has announced that the cost of acquisition for real estate properties purchased before 2001 will be the fair market value (FMV) as of April 1, 2001, or the actual cost of the land or building for the calculation of long-term capital gains (LTCG) tax. The FY25 Budget has reduced LTCG tax on real estate to 12.5%, from 20% previously.
Are LTCG tax rates in India too high? Here is a look at tax rates in other major economies
India’s Union Budget 2024 introduced simplified capital gains tax rates, increasing short-term capital gains on equity to 20% and long-term capital gains to 12.5%. These changes aim to rationalize the tax structure. In contrast, China, Australia, France, Germany, Japan, Singapore, Sweden, and the US showcase diverse approaches, reflecting their unique economic policies.
How to save 100% income tax? CA's video on selling grass goes viral after Budget: Watch video
A social media loophole suggests that salaried Indians could avoid income tax by growing and selling grass to their employers. Shrinidhi Handa's satirical video outlines a three-step process, claiming it's legal and simple. The viral video, shared by a CA, has garnered significant attention, sparking curiosity and skepticism about the hack's legitimacy.
Capital Gains Tax FAQs: What are the major changes brought about in LTCG & STT in Budget? All queries answered
Capital Gains Tax Budget 2024: India's Budget proposed significant changes in the taxation of capital gains, aiming for rationalisation and simplification. Key changes include a simplified holding period with only two categories, uniform rates for most assets, removal of indexation, parity between residents and non-residents, and maintaining roll over benefits. The new provisions are effective from 23.7.2024. Here's all your questions answered by the government.
Family offices & LTCG tax; blue skies for startups in the red
Happy Thursday! The budget proposals on capital gains tax and angel tax removal create a favourable situation for millionaire family offices. More on this in today’s ETtech Morning Dispatch.
LTCG tax parity may bring more family offices to the startupland
The budget proposal to bring parity on long-term capital gains (LTCG) tax across all financial assets and abolish the angel tax will lead to more family offices investing in startups. These entities have increased their activity in startups over the past year. As per a PwC report, there were 45 family offices in 2018, which have zoomed to 300 now.
No rethink on real estate LTCG long tweaks: Govt Sources
Amid concerns over the removal of Indexation benefit on property sales for tax calculation, government sources today said that there will be no reconsideration on changes made to Long Term capital gain (LTCG) in the Union Budget
Budget 2024: Realty, banks, defence among 9 sectors that appear short term losers. Here's why
As the dust around the Union Budget 2024 settles down, potential losers in the market as a result of announcements or rather lack of it, are coming to the fore.
Look beyond capital gains tax! Brokerages scream buy on over 50 ideas post Budget 2024
Analysts recommend over 50 stock picks post Budget, including Ultratech, HUL, ICICI Bank, TCS, and more. Industries like agro-chemicals and automobiles are expected to benefit.
Forget additional 2.5% LTCG, finally it is economy and earnings: 4 midcap stocks from different sectors with an upside potential of up to 37%
The reaction of the street to the increase in both short and long capital gains tax is stronger because it was not expected by any section of the market. Specially, mid caps segment which has been sitting on big gains is the one which is facing more cuts. Today and for may be for some more time this increase would impact the sentiment, but in the long term it is the economy and earning which matters to the street. Now the question is whether the budget is a step in the right direction when it comes to the economy. Forget economists, even anyone on the street has any doubt about it. So while investing, ignore the short term noise and focus on the fundamentals of the company and track record of the promoters.
Sensex, Nifty edge lower as tax hike on capital gains dents sentiment
Equity indices in India opened lower post-capital gains tax hike. Sensex down 0.05% at 80,396; Nifty50 0.11% lower at 24,451 by 9:20 am. Indices fell up to 1.6% Tuesday but recovered on rural program boost in Budget.
LTCG at par with stocks is a returns boost for VCs
This addresses a long-standing demand of the venture investor community to tax gains from the sale of unlisted companies at par with listed securities. This assumes significance given the increase in exits by early-stage investors in startups through secondary stake sales – a growing trend when primary capital funding is still constrained.
Union Budget 2024: Indexation removal may offset lower LTCG tax benefits for property transactions
The Union Budget for 2024-25 proposes to remove indexation benefits for property tax calculations post-2001. This change may offset the benefit of lower LTCG tax rates. Experts caution on the impact on property market and investors.
Rupee closes at an all time low on LTCG and STCG tax increase
The rupee weakened to an all-time low versus the US dollar due to a fall in stock markets after Finance Minister Nirmala Sitharaman proposed to increase tax rates on long-term capital gains (LTCG) and short-term capital gains (STCG).
Union Budget 2024: How will LTCG and STCG be applied to mutual funds?
Finance Minister announces changes in tax rates for short term and long term gains on financial assets. Market experts express mixed reactions to the budget, highlighting concerns for specific asset classes. Overall, the budget is seen as pragmatic from a financial market perspective.
Is Union Budget 2024 too harsh for stock market? 5 key takeaways for investors
Union Budget 2024 by Finance Minister Sitharaman raised STCG to 20%, LTCG to 12.5%, increased exemption limits, and hiked STT on F&O. It proposed taxing buyback income and aligned it with dividends, allowing capital loss offset. Analysts such as Ashish Nanda and Sanjay Sinha foresee market consolidation and balanced sectoral growth, focusing on fiscal responsibility and employment generation.
Rupee falls to all-time low on LTCG, STCG tax increase
With Finance Minister Nirmala Sitharaman proposing LTCG and STCG tax hikes, the rupee fell to 83.69/$1, breaking its previous low, and opened at 83.64/$1. Stocks dropped 0.8%, while Anil Bhansali suggested possible RBI intervention.
Budget 2024: LTCG, STT withdrawal on D-Street’s wishlist for FM Sitharaman
The demand is to levy a uniform 10% tax (plus applicable surcharge and cess) on equities held for more than one year and up to three years on the capital gains exceeding Rs 2 lakh in a financial year. Moreover, a full exemption from capital gains tax if held for more than three years, by suitable amendments to section 112A.
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