Experts About the Changes in Tax Structure for Equities & Capital Gains
Changes in Tax Structure for Equities & Capital Gains. The latest sources suggested that the government is probably going to declare a slew of measures with regard to the changes in the tax structure for equities and capital gains on the selling of property in the coming budget 2020. Market Experts Dinesh Kanabar the CEO of Dhruva advisors and SP Tulasian have spoke on the latest developments with CNBC TV18.
Possibly there is likely to be some alternations of LTCG (Long Term Capital Gains) Tax. There would be the extension of LTCG probably 24 months versus 12 months. By and large, people are just rooting for abolishing it completely.
What is your view? Do you think that there is likely to be any changes Changes in Tax Structure for Equities & Capital Gains?
Dinesh Kanabar said “The Prime Minister committed that he would reconsider India’s capital gains tax structure during the meet with the CEOs of US Inc. Besides, he wants to make it consistent with the best practices globally. This gives rise to the expectations that changes could occur in capital gains tax structure.”
He further added that a series of changes have been made on capital gains structure. Already we have multiple asset classes with separate tax structures and holding periods. So there is no need to make it complicated.
Usually, the minimum holding period for the long term should be 2 years. The real estate already has three years. Possibly, the holding period for equity would be 1 year, he said.
Kanabar spoke on capital gains tax on equities, said “The collections of capital gains tax on equities have been very limited since its commencement. Due to the way the market has progressed. Likely, there could be a relook on this front.
Do you think that there would probably be changes in the STT and hence that would compensate for entire abolishment of LTCG on equity?
On that Tulsian said, ” If the government think about the period of exemption to extend to 24 months then it would be a big move by it. Due to LTCG tax is going to be tax-free.”