Budget 2018: What 10% LTCG tax on gains over Rs 100k means for investors

Finance Minister Arun Jaitley has kept the short-term capital gains tax rate and holding tenure unchanged at 15% in Union Budget 2018-19

Budget 2018 has proposed to levy long-term capital gains tax (LTCG) of 10% on gains exceeding Rs 100,000 from sale of equity shares. However, capital gains made on shares until January 31, 2018, would be grandfathered, the finance minister said. Also, there has been no change in the definition of short-term capital gains tax (STCG).

“The much-anticipated introduction of LTCG is now back with a new avatar. As we know in tax legislation, this could only get worse over a period of time with every successive Budget diluting the original commitment of taxing long-term gains,” said Milind Kothari, managing partner