If a guy has only LTCG income of 10L, his tax (12.5%) comes to ~72000.
(considering basic exemption of 3L and LTCG exemption of 1.25L)
A guy having ordinary income of 10L… his tax, based on slabs, is only 50000.
LTCG is supposed to be taxed lower since it’s riskier. Indian tax rules are crazy.
The gist of the article is this - Finance Secretary says this - “earners of capital gains are not poor and we will keep taxing them at a decent rate.”
“Capital gains by no means is the preserve of the middle class, it is quite the opposite. The middle class is not the main earner of capital gains tax, it shows the rich piggybacking on the middle class claiming that it is a middle-class issue,” the secretary added.
Goodness.
Small mercy
Why? Where did you hear this?
I think he meant “it should be taxed lower”
welcome to india. you make profit you pay tax, you make loss you still pay tax.
Risk and loss is yours , but profits are surely govts.
CG tax rate should be higher. People making crores should really not be given very favorable terms just because its CG.
But yeah, maybe they can increase exemption limit so that people in lower brackets don’t pay more than slab rate.
Ideally, we should close all loopholes like this and then actually increase tax base ( which they never will) and then reduce tax rates for all when feasible. Or provide better socialsecurity/services atleast on par with good developed countries one day …