Union Revenue Secretary believes that the Budget's abolition of indexation and other reforms to LTCG tax are founded on the values of simplicity, fairness, and equity.
Reetu | Aug 5, 2024 |
Changes in Long Term Capital Gain Tax Fair; Says Revenue Secretary
Union Revenue Secretary Sanjoy Malhotra believes that the Budget’s abolition of indexation and other reforms to long-term capital gains tax are founded on the values of simplicity, fairness, and equity. He arrived in the city on Saturday for a meeting with industry and trade associations.
He said, “One should pay a little more if they have the ability to pay”.
Malhotra was accompanied by Sravan Kumar, Chief Commissioner of CGST and Central Excise, and K M Dixit, Principal Chief Commissioner of Income Tax for Bengal, Sikkim, and Andaman.
Income tax collection in the region has grown by 14.4% during the last five years, according to Dixit.
The total collection in 2023-24 is Rs.62,460 crore, compared to Rs.43,600 crore five years ago.
The Budget 2024 increased the tax on capital gains from stocks and equities funds while raising the exemption threshold, which may assist investors with smaller portfolios. Gains of up to Rs.1.25 lakh will now be taxed less, while those over Rs.2.25 lakh will face a higher charge. Short-term capital gains tax increased from 15% to 20%.
The Modi government proposed changes to the recently established long-term capital gains tax policy in the Union Budget 2024. It reduced the LTCG tax on property from 20% to 12.5% while eliminating indexation benefits for properties purchased after April 1, 2001. Industry groups were advocating for a phased transition to reduce potential retroactive repercussions on taxpayers.
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