The Central Government has made changes in many types of taxes for the financial year 2023-24, in which changes in tax regime and tax slab rates are major. Along with this, tax benefits available on long term capital gains have been removed.
Now the possibility was expressed that the government is going to increase the long term capital gains tax rules. According to the report, the Finance Ministry has ruled out increasing the tax on capital gains.
The Income Tax Department said through a tweet that it is clarified that there is no such proposal with the government regarding the increase in capital gains tax. There is no plan to increase tax in LTCG. However, from April 1, the government has removed the tax benefit available under long term and included it in the short term capital gain category. Along with this, recently the government has increased the STT (Security Transaction Tax).
This clarification was issued by the Income Tax Department when several sources told Bloomberg that India is considering a radical change in its direct tax laws. So that the complexity of the rules can be simplified. In the Bloomberg report, citing government sources, it was said that there is a plan to increase capital gains tax for high income taxpayers. Explain that up to 30% tax is imposed on high income.
The report also said that with the new Direct Tax Code, the government is looking to replace the complex tax system with the aim of bringing simpler laws to attract companies looking to shift their operations out of China. The report said that the Center had accepted that there is a need for reforms in capital gains tax. However, Finance Ministry officials have currently refused to discuss any such changes.
