Afternoon D & C Dedicated To Mumbai
Home > Business & Investment > LTCG tax kitty from stocks to double to Rs 40K cr in FY20: Adhia

LTCG tax kitty from stocks to double to Rs 40K cr in FY20: Adhia

Monday, February 05, 2018

The government hopes to double its revenue from long term capital gains (LTCG) tax on stocks to Rs 40,000 crore in 2019-20 as more share transactions come in its fold with the waning of the grandfathering effect, a top official has said.

Defending the reintroduction of the tax after a gap of 14 years, Finance Secretary Hasmukh Adhia said if the salaried class pays up to 30% income tax after toiling, it is only fair that those who make huge returns on stock market investment are brought into the tax net.

Adhia said a huge Rs 3.67 lakh crore, as per the I-T returns filed for Assessment Year 2017-18, has been exempted from tax as it under the LTCG from listed shares.

In the Union Budget 2018-19, Finance Minister Arun Jaitley has imposed a 10% tax on LTCG made in the share market to curb tax evasion.

However, all gains made up to January 31, 2018 have been grandfathered, meaning that they will not be taxed.

In an interview to PTI, Adhia said the calculation of capital gains on equities held currently by an investor would be based on the price of the stock as of January 31, 2018.

"In the first year (2018-19), we will get Rs 20,000 crore (from long term capital gain tax) because we have grandfathered. Next year (2019-20) onwards, it would be about Rs 40,000 crore," he said.

Currently, 15% tax is levied on capital gains made on sale of shares within a year of purchase. However, LTCG tax is nil for shares sold after a year of purchase.

From April 1, start of the new financial year, LTCG gains exceeding Rs 1 lakh will be subject to 10% tax. Adhia said: "This is the first year when we started asking for reports on this. We have got startling Rs 3.76 lakh cr being reported as exempted income. Isn't that too much? Just imagine you as salaried class would have earned this much income, you pay 30% tax for your toil.

COMMENTS
No Comments Posted
POST YOUR COMMENTS
Name:  
 
Email:    
Comments:
 
 
City news
A total of 234 roads were investigated and ...
Anti-Terrorism Squad’s Bolero car stolen from cop
The Maharashtra State Bank Employees’ Federation
We got married recently. I am 32 and my wife is 3
Dr. Rajan B. Bhonsle, M.D. (Bom)
Consulting Sex Therapist & Counsellor
Dr. (Mrs.) Minnu R. Bhonsle, Ph.D.
Consulting Psychotherapist & Counsellor
Astrology
Select Sun sign:
 
Aries (Mar 21 - Apr 20)
Aries (Mar 21 - Apr 20)This is the right time to ask for help if you need it. Adjustments are necessary almost at every level. You must adapt to some things that you cannot change. Do not be rigid and accept readily with grace. Use your money wisely, for there may be several demands. A long distance journey to a pilgrim spot or the need to meet a person you look up to is likely. The need to get an unbiased opinion about your affairs is strong.
- Advertising -
Read More