HomeCURRENT AFFAIRSBUSINESSCentre may simplify capital gains tax structure in Budget

Centre may simplify capital gains tax structure in Budget

Capital gains tax on equity shares, bonds and immovable property can be changed in the budget. An official said that this step is likely to be taken to remove the difference in different tax rates and the period of holding the property. He said that there is a possibility of change in capital gains tax in the budget of the next financial year. The budget for the financial year 2023-24 will be presented in the Parliament on February 1, 2023

Capital Gains Tax Part of the Budget Process

Asked about possible changes in capital gains tax, Central Board of Direct Taxes (CBDT) chairman Nitin Gupta said, it is part of the budget process. Nothing can be said about it.

Under the Income Tax Act, gains from the sale of capital assets, both movable and immovable, are subject to capital gains tax.

However, the law excludes personal movable properties like cars, apparel and furniture. We are looking into the suggestions received from various parties, the official said.

How much tax is being imposed?

Currently, long-term capital gains on shares held for more than a year are taxed at 10 per cent. On the other hand, the tax rate on capital gains is 20 percent in case of bonds and immovable assets held for three years and two years respectively. Due to different rates applicable on different properties in different time limits, it is expected that some changes can be made in the tax rules in this budget.

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