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No proposal yet on revamping of capital gains tax: Govt sources

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No proposal yet on revamping of capital gains tax: Govt sources

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Earlier on Tuesday, a media report, citing sources, had suggested that Centre was expected to revamp the capital gains tax structure in the next budget to augment revenue collections and boost spending on welfare schemes.

In a bid to soothe nerves on a proposed massive rejig of capital gain tax structure, top government officials told CNBC-TV18 that there was no such proposal yet on the table and such reports were in the realm of speculation.

Rather, sources said that "the government is currently engaged in the process of passage of the current Finance Bill in Parliament."
Top government sources, who didn't wish to be named, said, "In fact, it is quite premature to talk about the next budget when the current year's Finance Bill is still under discussion and yet to be passed."
Earlier on Tuesday, a media report, citing sources, had suggested that Centre was expected to revamp the capital gains tax structure in the next budget to augment revenue collections and boost spending on welfare schemes.
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Currently, long-term capital gains (LTCG), which was was introduced with effect from 1 April 2019, on listed equities held for more than a year is taxed at 10 percent on profits above a threshold of Rs 1 lakh.
On the other hand, short-term capital gains on listed equities held for less than a year is taxed at 15 percent.
Last month, Revenue Secretary Tarun Bajaj had said the government was open to a detailed review of the current capital gains tax framework but he was of the view that capital gains provisions need a serious review.
He also asked the industry to also conduct a study on the prevailing rates of capital gains tax across the world, adding that the department has already studied rates in other nations like India and the developed world.
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