Nine different sections of the Income Tax Act allow property sellers to reinvest gains and cut down capital gains tax significantly.
Inheritance is not taxed, but selling inherited gold can attract capital gains tax—knowing when and how is the key.
Moneycontrol analysis shows that in the recent past, whenever FPIs sold in big amounts, capital gains tax collection has risen
In the budget, the government plugged a key loophole in tax rules which allowed FPIs to enjoy a 10% LTCG rate on non-equity investments.
Moneycontrol's latest Market Poll reveals a 91 percent respondents do not expect a capital gains tax hike in the upcoming Budget. The poll included nearly four dozen participants from broking firms, mutual funds, AIFs, PMS, and independent experts.
The latest Moneycontrol Market Poll saw participation of nearly 45 respondents across categories including broking firms, mutual funds, AIFs, PMS and independent experts
Budget 2025: The capital gains tax hike in the last budget raised concerns among investors about the potential for future increases. While the likelihood of another hike in quick succession seems low, it cannot be entirely dismissed. Any unexpected move on capital gains tax could lead to a sharper market downturn, amplifying existing anxieties.
At least half-a-dozen companies, including Flipkart and Pine Labs, are currently exploring the reverse flipping option.
Samir Arora highlighted that while pre-tax returns in India may seem promising, post-tax returns tell a different story due to the high capital gains tax, especially putting foreign investors at a disadvantage.
Managing long-term capital gains (LTCG) tax is crucial for maximizing your investment returns. With the right strategies, investors can significantly reduce their tax liabilities. From utilizing the your annual exemption and leveraging tax-friendly securities to setting off capital losses and benefiting from indexation, there are various ways to lower your LTCG tax burden.
Nirmala Sitharaman reiterated the government’s commitment to middle class with the measures taken in the last few years, adding that the discussions on the long term capital gains tax have been twisted and turned.
Back in 2018, then finance minister Arun Jaitley reintroduced capital gains tax on equities, and now, in 2024, Nirmala Sitharaman has gone a step ahead and hiked tax rates.
The economist said that given that spending on infrastructure is capital-intensive, it may not lead to the creation of jobs. “If you really wanted to create jobs, you would spend money on health and education,” he added.
Equities are much, much higher up the ladder in terms of risk asset and to harmonise the capital gains tax rate in the same way to some other asset probably is not the ideal comparison, Shah said.
Khemani also highlighted his continued interest in PSU stocks, noting their strong performance in terms of asset quality, technology, and governance
Market participants see LTCG/STCG hike as a body blow or the right move, believe STT increase won't deter retail traders
The central government has set a fiscal deficit target of 4.9 percent of GDP for 2024-25
Market veterans believe that it may not help short up government revenue but may simply dampen investor sentiment
It could hit emerging equity culture, hurt foreign inflows. The government should hold its hand at this stage of the development of Indian stock markets and economy
Veterans believe that any hike could mean that a rough ride is in store, but add that the effect of such a move will be felt more by HNIs and active traders than by the typical retail investor.
Capital gains tax changes always take center stage in market discussions before the presentation of Union Budget each year. This year is no exception, with market veterans like Samir Arora, Raamdeo Agarwal, and Vijay Kedia weighing their expectations on potential capital gains tax reforms
A repeat of the shock BJP defeat in 2004 remains unlikely in the extreme, said Chris Wood. At that time, the Sensex corrected by 17 percent in the two days after the election results. In GREED & fear’s view there would be an even worse outcome in the event of a repeat of such a shock result.
Arora argued for easier capital-gains tax regime for foreign investors, even doing away with it entirely for both foreign and domestic investors, while Mantri called that ask "narrow and self-serving".
While debt instruments do carry some credit risk, there have been relatively few reported cases of default involving such instruments.
Considering the current cost of living and inflation, the threshold of Rs 50,000 is a meagre amount for individual taxpayers and therefore, it is expected to be raised to a minimum of Rs 1 lakh in the election interim budget