Long Term Capital Gains Tax

In Budget 2024, FM Sitharaman proposed an overhaul in the capital gains tax regime, including lowering the LTCG tax to 12.5% from 20%

Finance Minister Nirmala Sitharaman on Wednesday said the contentious LTCG tax proposal on real estate is being amended to give option to taxpayers to compute tax liability under the old system or at reduced rates without indexation, and pay the lower of the two. Replying to a debate on the Finance Bill, Finance Minister Nirmala Sitharaman said the rollover benefit will be available to taxpayers who buy new immovable property utilising the capital gains on the sale of old property. The Budget 2024-25 proposal to remove indexation benefit in calculation of long term capital gains on sale of immovable properties evoked sharp criticism from various corners, including opposition parties and tax professionals. The Budget, presented on July 23, had proposed a lower 12.5 per cent rate of LTCG tax, down from 20 per cent, while doing away with the indexation benefit. The major amendment in the Bill relates to restoration of indexation benefit on sale of properties bought prior to July 23, .

In a significant relief to property owners, the government has introduced a new option for calculating long-term capital gains (LTCG) tax.

Effectively gives grandfathering provision for property transactions before July 23

The government has garnered Rs 98,681 crore from long term capital gains tax on listed equities in 2022-23, a 15 per cent growth over the previous year, Parliament was informed on Tuesday. Minister of State for Finance Pankaj Chaudhary gave details of collections from Long Term Capital Gains (LTCG) tax between fiscal 2018-19 and 2022-23 in the Rajya Sabha. The long term capital gains on equities and units of equity oriented mutual funds were brought in from April 2018. Such gains were taxed at 10 per cent, with gains of up to Rs 1 lakh annually being exempted. As per the details shared with the Parliament, Rs 98,681.34 crore was collected from LTCG in 2022-23, up 15 per cent over Rs 86,075.49 crore collected in 2021-22 fiscal. The collection was about Rs 38,589 crore in 2020-21, Rs 26,008 crore in 2019-20 and Rs 29,220 crore in 2018-19. To a question on whether the government is contemplating to abolish the LTCG tax on equities/mutual funds during 2024-25, Chaudhary said, "There i

Income tax changes in Budget 2024: On the personal income-tax front, the tax slab rates have been rationalised only under the new tax regime

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

Union Budget 2024-25: Union Finance Minister Nirmala Sitharaman clarifies tax on long-term capital gains, angel tax, and government effort to widen the tax net

Union Budget 2024: Several people took to social media platform X (formerly Twitter) to criticise the move, noting that it is painful for stock market investors

Budget 2024: While some of the announcements were on expected lines, many have led to a surprise among investors

Long term capital gains (LTCG) tax on the sale of these asset classes stocks, mutual funds, real estate etc. is levied when the holding period of the asset is over one year

Market pundits also expect some changes in the tax treatment of gains arising from trades in the futures & options (F&O) segment

Capital gains tax rate change in the Budget 2024 on July 23 can trigger a bigger correction than seen post Lok Sabha election outcome, Wood said

Capital gains taxes can range from 10 per cent to as high as 30 per cent, depending on the holding period, which spans from one to three years

Long-term capital gains tax kicks in for listed equities if the holding period is one year, while it is two years for non-financial assets such as real estate

The govt's step could push investors to choose riskier equity, or to fall back on bank deposits, thereby negatively impacting the debt market which actually needs to grow, writes T N Ninan

Finance Bill 2023: Debt funds with less than or equal to 35 per cent invested in equity shares will be taxed at the investors' income tax slab and treated as short-term capital gains

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

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

Given global uncertainties, rejigging the tax regime may affect market sentiment