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rediffGURU Vipul Bhavsar answers readers' personal income tax queries
The income tax department on Wednesday issued FAQs on changes in the capital gains tax saying the idea behind it was to simplify the tax structure and promote ease of compliance. The holding period for various asset classes for the purpose of short- and long-term capital gains tax has been rationalised. The holding period of all listed assets will be now one year for the purpose of long-term capital gains tax (LTCG).
The Budget may tweak capital gains taxes levied on equity, debt and immovable property to bring parity in varied tax rates and holding period, a senior official said. Explaining the rationale, the official said there needs to have an alignment in tax rate and holding period for all the asset class. Changes in capital gain tax expected in Budget, the official said.
'Expectations are high regarding the change in LTCG with respect to equity investments.'
The FM also said the government has proposed a joint panel of Corporate Affairs Ministry and CBDT for incorporation of income computation and disclosure standards.
rediffGURU Samkit Maniar answers readers' personal income tax queries.
Taxpayers seeking to save tax from the sale of gold (including inherited) should reinvest the capital gains in residential property to avail of the benefit provided by Section 54F.
In a case related to Mumbai-based Jai Trust versus Union government, the court ruled that a gift is a consideration-less transaction, and hence, not liable for capital gains tax. It quashes the reassessment notice issued by the tax authorities alleging that a specific income has escaped assessment on transfer of shares as gift by the trust.
'Genuine' share transfer gets relief; CBDT lists three scenarios where tax would be levied
The government has exempted units of investment trusts and ETFs issued by entities based in GIFT City or traded in exchanges there from capital gains tax. The Central Board of Direct Taxes (CBDT) notified the exemption from capital gains tax any unit of investment trust; a unit of a scheme; and a unit of an Exchange Traded Fund (ETF) launched under the International Financial Services Centres Authority (Fund Management) Regulations, 2022. Gujarat International Finance Tec-City (GIFT)-IFSC is being promoted as a tax-neutral enclave for the financial sector.
The finance ministry is looking at rationalising long-term capital gains tax structure by bringing parity between similar asset classes and revising the base year for computing indexation benefit to make it more relevant, an official said on Friday. Currently, shares held for more than one year attract a 10 per cent tax on long-term capital gains. Gains arising from sale of immovable property and unlisted shares held for more than 2 years and debt instruments and jewellery held for over 3 years attract 20 per cent long term capital gains tax.
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Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
Jaitley said returns from the stock market are quite attracting and it was time to bring them under the ambit of capital gains tax.
'Volumes in F&O trading had gone up rapidly and, in a way, the increase in STT on F&O will protect investor interest.'
Having observed variations in capital gains tax computation, the revenue department is working on a mechanism to analyse futures and options (F&O) trade data and pre-initial public offering (IPO) transactions. "The directorate of I-T systems is working on certain risk-assessment parameters to access the data, which could be on the basis of buying and selling prices of shares in F&Os, variations in margins, fair market value versus IPO prices, etc. "The idea is to segregate and process the voluminous data on equity derivatives for effective use," said a senior government official privy to the plan.
The government is open to 'some tinkering' in the varied rates and holding period for computation of capital gains tax on shares, debt and immovable property, in a bid to make it simple, revenue secretary Tarun Bajaj said on Wednesday. Under the Income Tax Act, gains from sale of capital assets, both movable and immovable, are subject to 'capital gains tax'. The Act, however, excludes movable personal assets such as cars, apparels, furniture from this tax.
'There is a huge tax differential of 15% to 20% depending on income classification.'
A tax authority has ruled that Mauritius-based companies will have not have to pay capital gains tax in the country, a decision that will encourage global business entities to route investment from the island nation.
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Deposit certificates will also be exempt from capital gains tax.
The regulations will only apply to the share purchases that have been done after October 1, 2004
Authority for Advance Ruling dispenses with complex forex indexation requirement.
The Budget proposal to impose capital gains tax on transactions in works of art would qualify art as another asset class.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
The government on Wednesday said there won't be any capital gain tax if physical gold is converted to an electronic gold receipt and vice versa.
rediffGURU T S Khurana answers readers' personal income tax queries.
Mahesh Padmanabhan of RelaxWithTax has the answers to your tax related queries.
Several PE investors have appealed to the ministry to bring them at par with the foreign institutional investors as far as tax treatment is concerned.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
DBS Bank India has launched a direct tax payment facility after authorisation from the Central Board of Direct Taxes (CBDT). Utkarsh Small Finance Bank partners with Mumbai Indians as banking partner for T20 League 2026.
This single amendment, unfortunately, overshadows much of the Budget's promise, explains Harsh Roongta.
The Budget emerges as a measured, credible and forward-looking policy document that reinforces India's commitment to remaining a stable, reform-oriented economy amid an increasingly fragmented global landscape, says A Balasubramanian.
The company will spend Rs 10,141 crore to buy 15.5 per cent stake from minority investors.
Your decision to invest in capital gains bonds or otherwise should be determined by your risk appetite and investment objective among others.
Investors who have capital gains, have a variety of investment avenues, wherein they can park their capital gains. We have explored below the main investment products at the investor's disposal for offsetting capital gains.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
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