Expecting some changes in Capital Gains on Equity ๐๐
Our proposal:
- STCG at 15%
- LTCG at 10% (1-2 years)
- LTCG at ZERO (above 2 years)
- Include Capital Gains up to 12 Lakh in Rebate 87A (so that retired people who depend on capital gains benefit)
We need more people to amplify and show that we need these reforms ๐ฅ @nsitharaman ji
On behalf of honest tax payers,
#FI
That makes little sense.
Simply because when you buy debt/FD and report an interest income (and therefore pay tax on it) another party reports the same amount as interest cost (and therefore saves tax). So govt does not benefit much in aggregate on tax collection.
Futures trading is like above where someone reports a profit and there is more or less an equal amount of loss with some other participant- therefore tax rate can be high for the one who makes profit (and it already is) since the losing side is going to get tax benefit for the same amount.
In case of long term equity what you exchange is post tax income of the company or dividend stream which is anyway taxed separately. One investor making big capital gains is not normally accompanied by another fellow claiming an equal loss (the sellers may have had an opportunity loss but not a claimable tax loss).
In summary: Govts worldwide collect a lot more on cash equity gains than what you see at first glance as there is no other side claiming a loss (and therefore a tax offset) to counter your profit.
Also capital gains tax cannot be compared with tax on interest income by conveniently leaving out STT.
That makes little sense.
Simply because when you buy debt/FD and report an interest income (and therefore pay tax on it) another party reports the same amount as interest cost (and therefore saves tax). So govt does not benefit much in aggregate on tax collection.
Futures trading is like above where someone reports a profit and there is more or less an equal amount of loss with some other participant- therefore tax rate can be high for the one who makes profit (and it already is) since the losing side is going to get tax benefit for the same amount.
In case of long term equity what you exchange is post tax income of the company or dividend stream which is anyway taxed separately. One investor making big capital gains is not normally accompanied by another fellow claiming an equal loss (the sellers may have had an opportunity loss but not a claimable tax loss).
In summary: Govts worldwide collect a lot more on cash equity gains than what you see at first glance as there is no other side claiming a loss (and therefore a tax offset) to counter your profit.
Also capital gains tax cannot be compared with tax on interest income by conveniently leaving out STT.