https://twitter.com/REDBOXINDIA/status/1597821009112928257?s=20&t=hGym6fs0_ZZ8UVaHHIT5LQ
Interesting to see what effect this would have.
Would it really make any difference if tax free slab is increased to 5 lacs? I mean we already have rebate of 12500 till 5 lac income ryt
What I’d like to see -
STCG period to be increased to 2 years for equities. Also, the tax rate can be changed to the assesses slab rate.
LTCG on equities, gold and real estate to be levied on investments held for more than 2 years, taxed at 20% with indexation benefit.
In case of debt investments, STCG should be classified as less than 1 year holding period and tax should be as per slab rate. For investments longer than 1 year, LTCG at the rate of 20% with indexation benefit.
STT should be done away with completely, since STT was originally introduced in lieu of LTCG.
I think this will provide a much cleaner tax structure and reduce transaction costs. The actual revenue gains/loss to the government will need to be worked at.
Hello @YS_Bhargav,
Yes, it would make a difference. Currently, the basic exemption limit is INR 2.5 Lakhs and a rebate under section 87A of INR 12,500 is available to resident individuals if their taxable income is up to INR 5 Lakhs. However, if taxable income is more than INR 5 Lakhs then a rebate can not be claimed.
Instead, if the basic exemption limit is increased to INR 5 Lakhs then no tax up to INR 5 lakhs even for assessees having taxable income of more than 5 Lakhs and NRI’s.
Hope this helps!
Market Chatter is only growing when it comes to capital gains tweaking
Nice take on 80 C section
Your expectations from budget going forward? After the adani episode, the event becomes more key than initially thought.
I expect more taxes on capital gains.
Also more GST on very basic things like roti , pickles…etc…
LOL 
seriously man. The expectation is too low
Also remember our FM doesn’t eat onion and garlic , so she might bring them under GST.
CG increase i think is fair. CG is generally made by well off and proportionately most by rich. Why should they pay less? Problem is everyone wants freebies, and some get more freebies than others and instead of that being seen as wrong we instead get people wanting more freebies for themselves.
So Sachin Tendulkar is an actor and Amitabh Bachchan wants to be a farmer and CAs find innovative ways to save taxes. Anyone not doing that is a fool. And the richest of the rich never book their gains.
There must be a country somewhere with sane and fair and simple taxation.
If they increase this, market cap will fall. This will result in lower STT because of lower transaction value. I have not quantified the net effect but I feel loss from STT will be even more than the gain the government will make by increasing capital gains.
Sad truth. Agricultural income can never be taxed. So loophole won’t be covered by just increasing CG tax.
So the only motive can be for more tax collections but this is going to back fire is what I feel.
