Budget 2023: What is Long Term Capital Gains Tax?
Budget 2023: The Finance Ministry is likely to be looking at ensuring parity between similar asset classes by rationalising the LTCG tax structure and even revising the base year for computing inflation adjusted capital gains, sources aware of developments said, according to a report by news agency IANS.
Budget 2023: The government is likely to rationalise the LTCG tax structure in the forthcoming Union Budget for 2023-24. As of now, shares held for more than one year attract a 10 per cent LTCG tax. This tax was discontinued in 2005. However, the government reintroduced it in 2018 in the Union Budget.
Also Read: Budget 2023: Why agri stocks are in focus prior to Budget
The Finance Ministry is likely to be looking at ensuring parity between similar asset classes by rationalising the LTCG tax structure and even revising the base year for computing inflation adjusted capital gains, sources aware of developments said, according to a report by news agency IANS.
Gains from sale of immovable property and unlisted shares which have been held for more than two years, attract 20 per cent LTCG. The government may look at rationalising tax rates and also the holding period for calculating LTCG in the forthcoming budget, sources added.
Also Read: Budget 2023: Experts eye big push for infrastructure sector from government
What is LTCG?
Long Term Capital Gains or LTCG is a tax paid on any capital asset held by taxpayers for more than 36 months or 3 years immediately preceding the date of its transfer is treated as a long-term capital asset.
However, in respect of certain assets like shares (equity or preference), units of equity-oriented mutual funds, listed securities like debentures and government securities and Zero-Coupon Bonds, the period of holding is 12 months.
Whereas, in the case of unlisted shares of a company and immovable property, being land or building or both, the period of holding is 24 months.
Exemptions under LTCG
Movable personal assets such as cars, apparel and furniture are excluded from the Capital Gains tax bracket.
Click here to get more stock market updates I Zee Business Live
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
03:58 PM IST