Govt looking to hike short-term capital gains tax in Budget

Moneycontrol Bureau The government is likely to hike both short-term and long-term capital gains tax rate in the upcoming Budget. Prime Minister Narendra Modi in his speech on Saturday had said that tax collection from capital markets players is low majorly due to illegal activities. Market took this as a hint for a probable hike in February. A report in the Business Standard says that short-term capital gain tax, which stands at 15 percent currently could be hiked to 20 percent. Short-term capital gains is the profit earned on shares held for less than a year. The news report in Business Standard further adds that government is in talks with market regulator Securities and Exchange Board of India (SEBI) and stocks exchanges to discuss making changes in the capital markets.