Govt tinkering with long-term capital gains unlikely: HP Ranina

The Government is unlikely to tinker with the long-term capital gains structure in the upcoming Budget, says Corporate Lawyer HP Ranina. Although he adds that Prime Minister Narendra Modi may be hinting at an increase in the Securities Transaction Tax. He says the PM may want to plus the loopholes in penny stock trading. ButDinesh Kanabar, CEO of Dhruva Advisors is of the opinion that the government may not need to amend laws to plug loopholes regarding penny stocks. Kanabar says this is a definitive move to make sure people profiting from the market pay taxes.In a speech delivered at a SEBI event in Mumbai on Saturday, Prime Minister said "Those who profit from financial markets must contribute to nation-building through taxes."After the PM spooked the market by hinting at a capital gains tax, Finance Minister Arun Jaitley tried to calm frayed nerves, saying the PM's speech was misinterprated and that the government has no intension of taxing long-term capital gains on securities. The Finance Minister's speech however had little affect on dalal street. Nifty hit a 7-month closing low and ended below the Brexit day low of 7,927 points. IT, banking and pharma stocks all dragged the market.The new tax rule are expected to be fairly destructive, says Tejas Desai Of Ernst And Young.Watch video for more.