What's New :
Government plans reform in ‘capital gains tax’
22nd Mar, 2022
The government is likely to revamp the capital gains tax structure in the next budget to augment revenue collections and boost spending on welfare schemes.
About Capital Gains Tax:
- Capital Gains Tax is levied on the profits made on investments.
- It covers real estate, gold, stocks, mutual funds and various other financial and non-financial assets.
- It is divided into long-term capital gains tax (LTCG) and short-term capital gains tax (STCG) depending on how long you have held the investment in question.
Capital Gains Tax vs. Income Tax:
- Unlike income tax, the percentage of Capital Gains Tax does not change on the basis of your overall tax slab.
- For example, the LTCG tax excluding surcharge on equity is the same for gains of ?10 lakh or ?10 crore.
- Moreover, there is also a separate set of deductions that apply to LTCG which do not apply to ordinary income.
Verifying, please be patient.