Latest Data on LTCG and Other Taxes related to Markets

Taxation
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Government in Rajya Sabha today presented details about the Long term capital gains collected by the Govt on Mutual Funds and Equities from last 3 Assessment Years.

LTCG
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As you can see in the above picture, the LTCG Collection has grown from 1222.24 Crores in AY 2018-19 to 5311.87 Crores in AY 2020-21.

Government has also said : 1. No plans to raise the taxes on Long Term Cap Gains

  1. No plans to increase the LTCG period to 2 years which is 1 year currently
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The decision to stick to the present rate of LTCG and also no extension of the LTCG period does bring some relief. Previously, the gains were tax-free and they were the best days but now taxes have been implemented. An increase in such a tax rates can easily derail market participation.

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