H'ble @nsitharaman , Below, you state that you haven't increased any taxes on the Equity, claiming the only hike was the STT on F&O
What about rise in LTCG & STCG?
Ma'am,
Before October 2004
Long-term gains on listed shares were taxed at 20% with indexation, or 10% without — whichever worked out lower. Short-term gains had no special treatment at all. They were simply added to your income and taxed at your slab, which meant 30% for anyone in the top bracket. There was no STT.
October 2004:
The Finance (No.2) Act 2004 made a trade. LTCG on listed equity went to zero under Section 10(38). STCG got a flat concessional rate of 10% under Section 111A. In exchange, a new levy was introduced — STT, collected at source on every trade, at 0.075% on both the buy and the sell of a delivery transaction.
The logic was elegant: instead of chasing capital gains through assessment, collect a small amount from everyone, automatically, at the exchange. Compliance went up, litigation went down.
2005: Delivery STT raised to 0.10%
2006: Raised again to 0.125%
2008: STCG raised from 10% to 15%
2012: Delivery STT cut back to 0.10% — where it still sits today
This is cruelty,
**2018: LTCG exemption withdrawn. Section 112A brings back 10% on gains above ₹1 lakh, with gains up to 31 January 2018 grandfathered**
**2024: LTCG raised to 12.5% above ₹1.25 lakh. STCG raised to 20%**
2026: Budget raises STT on futures and options only. Delivery untouched
Very Good.
LTCG was in lieu of STT. Why you retained & increasing both?
Please make LTCG 0 & STCG 10%. Please.🙏🙏
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