Indexation

The announcement comes just three months after India imposed controls on foreign ownership of some newly issued bonds with 14-year and 30-year tenors

The Congress on Wednesday said the government's proposal of giving individuals the option to choose between two tax rates for long-term capital gains (LTCG) tax on properties is not enough and it should also allow indexation benefits for other forms of savings such as stocks and fixed deposits. Professionals' Congress Chairman Praveen Chakravarty accused the government of "betraying" the middle and salaried class in the Union Budget through the removal of indexation and higher taxes on their savings and investment gains. "On 23rd July, Finance Minister Nirmala Sitharaman presented the government's budget in Parliament. We welcomed certain aspects but we strongly opposed many parts of the budget. We welcomed the fact that the FM took some ideas from the Congress party's manifesto such as the employment linked incentive (ELI) scheme, the Apprenticeship Act and removing Angel tax," Chakravarty said at a press conference at the AICC headquarters here. Among other things, we strongly ...

Investors have earned an annual interest rate of 2.5% over the past 8 years on Sovereign Gold Bonds

Longer holding periods correlate with higher taxes with or without indexation. Without indexation, the taxes are comparatively higher

When the government reintroduced taxation on listed equity in 2018, it took care to exempt capital gains accrued until the date of the 2018 budget

High-end properties may see some drop in demand, they add

Mumbai and the National Capital Region (NCR) are likely to be hit the most by Budget 2024 property indexation benefit loss, said analysts at CLSA in a note

LTCG on non-financial assets like property will also be taxed at 12.5 per cent, against the earlier 20% post indexation if held for more than three years

Indexation benefits will continue to apply to properties purchased before April 1, 2001, but not to those purchased after that date

India Budget 2024-25 News Highlights: By raising LTCG tax to 12.5 per cent and STCG tax to 20 per cent, the overhang for stock markets gets removed

Invest in individual bonds only if you can analyse and monitor the credit profile of companies

Target maturity funds, longer-duration schemes see high demand

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

A task force had recommended changes in indexation benefit rules for the capital gains tax in 2019, and it is expected to be the main basis of the review

Capital gains will be calculated from the original owner's purchase date