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Re-introduction of LTCG tax
February 5 , 2018
2355 days
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- The government has re-introduced LTCG tax on equity shares.
- The Centre has said that said if the gains exceeded one lakh in a year, then 10% LTCG tax had to be paid without the benefit of indexation (adjusting the profit against inflation to compute the real taxable gains).
- Investors have to pay 10% LTCG tax on gains exceeding ₹one lakh on the sale of shares or equity mutual funds held for more than one year.
- No changer has been made on short-term capital gains (STCG). It allowed to continue as such i.e 15%.
Capital gains
- Any profit from the sale of a capital asset is deemed as ‘capital gains’.
LTCG
- If an asset is held for 36 months or more, any gain arising from selling it is treated as a ‘long-term’ capital gain (LTCG).
STCG
- If an asset is held for less than 36 months, any gain arising from selling it is treated as a short-term capital gain (STCG).
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