Capital Gains

The Commerce minister termed the criticisms against the hike in capital gains tax and securities transaction tax in derivatives trading as fear-mongering

Investors should take advantage of the increased exemption limit of Rs 1.25 lakh for LTCG, ensuring that they maximise their tax-free gains

Revenue Secretary Sanjay Malhotra has clarified that rollover benefits will continue on capital gains of up to Rs 10 crore under the new structure

Simplifying taxes will improve collection

Revenue Secretary Sanjay Malhotra on Wednesday said the changes in Long-Term Capital Gain Tax (LTCG) announced in the Budget by Finance Minister Nirmala Sitharaman will benefit most of the people investing in the real estate sector. The Budget has lowered the LTCG from 20 per cent to 12.5 per cent but removed the indexation benefits. The indexation benefit allowed taxpayers to compute gains arising out of the sale of capital assets after adjusting inflation. The proposal has raised apprehensions that a person selling his property will have to pay a higher capital gain tax. "This is mostly a simplification exercise. Some people have expressed apprehension on the removal of indexation. I want to allay their concerns that while indexation has been removed at the same time the tax rates have been substantially reduced from 20 pc to 12.5 pc. This will benefit most of the people investing in real estate in the long term as the rate of return is more than 10-11 per cent," Malhotra told PT

Short-term capital gains tax raised to 20%, long term to 12.5%

Investment manager Capitalmind Financial Services on Thursday said it aims to raise Rs 500 crore in its maiden alternate investment fund over the next year. The company has been in the portfolio management services space and currently, boasts Rs 2,200 crore assets under management, its founder and chief executive officer Deepak Shenoy said. The firm received the Sebi approval for a category 3 AIF which it christened as "Capitalmind Select India One" last year, he told reporters, adding that the minimum investment amount will be Rs 1 crore. The fund is designed for sophisticated investors seeking exposure to a diversified, quantitatively managed equity portfolio with active risk management, he said, adding that it will invest in 20-40 stocks. It combines multiple factors such as momentum, low volatility and quality into a single pooled vehicle, offering investors an opportunity for long-term wealth appreciation, a statement said.

The Income Tax Department has notified the cost inflation index for the current fiscal to calculate long-term capital gains arising from the sale of immovable property, securities and jewellery. The cost inflation index (CII) is used by a taxpayer to compute gains arising out of the sale of capital assets after adjusting for inflation. The Cost Inflation Index for FY 2022-23 relevant to AY 2023-24 is 331. AMRG & Associates Senior Partner Rajat Mohan said the CII will help taxpayers to compute long-term capital gains tax, enabling them to remit advance tax on time. "For the last couple of years, the inflation index has been rising faster, which depicts the mounting inflation in the country," Mohan added. AKM Global Head of Tax Markets Yeeshu Sehgal said the CII will be beneficial to taxpayers as assets, which are held for long term, are recorded at purchase cost despite increasing inflation "It is very important to adjust the said purchase cost with the new cost inflation index ..

The report notes that the share of public administration and defence improved, attributable to increased government spending

The Indian REITs Association, a newly formed umbrella body, has meanwhile requested Sebi to classify REITs as equities and petitioned RBI to allow banks to lend to REITs

The recent regulatory measures have upside in terms of curtailing lenders' over-exuberance, enhancing compliance culture, and safeguarding customers

The thing is, if a company wants to move from another country to India as a domicile, it is treated as a capital gains event for existing investors

Gross total income has gone up 229 per cent since AY13 and was nearing Rs 70 trillion as of AY22. Tax payable was nearing Rs 10 trillion

State-owned Power Grid Corporation board on Friday approved raising of Rs 2,200 crore through bonds. The company's committee of directors for bonds, in their meeting on July 29, 2023, approved the raising of up to Rs 5,700 crore in FY 23-24 in multiple tranches to part finance its capex requirement, for providing inter corporate loan(s) to wholly owned subsidiaries/JVs and for general corporate purposes, according to a regulatory filing. Further, it stated that the committee of director for bonds in their meeting on Friday approved the raising of up to Rs 2,200 crore towards the third tranche of bonds. The base issue size is Rs 500 crore with a greenshoe option of Rs 1,700 crore, the the filing added.

Income Tax data shows how new investors are making money and how much

Equity issuance in the first half reached Rs 73,747 crore, marking a 69 per cent increase year-on-year

The government has exempted units of investment trusts and ETFs issued by entities based in GIFT City or traded in exchanges there from capital gains tax. The Central Board of Direct Taxes (CBDT) notified the exemption from capital gains tax any unit of investment trust; a unit of a scheme; and a unit of an Exchange Traded Fund (ETF) launched under the International Financial Services Centres Authority (Fund Management) Regulations, 2022. Gujarat International Finance Tec-City (GIFT)-IFSC is being promoted as a tax-neutral enclave for the financial sector. Nangia Andersen LLP Partner-Financial Services Sunil Gidwani said currently, the law provides for exemption from capital gains tax on various securities either trading on the stock exchanges in GIFT city or securities issued by entities set up in GIFT city. "The new fund regime provides for funds to be set up as investment trusts, and hence, the law required the inclusion of units issued by such trusts for the purpose of exemptio

India's reliance on indirect taxes - levies on consumption - rather than direct taxes on capital is often cited by economists as the main culprit behind the country's poor getting left behind

New Mutual Fund rules: All existing investments and new investments made in debt MFs before March 31 will not be affected by the proposed mutual fund tax change

Separate schedule for virtual digital assets requires details like date of acquisition, date of transfer head