MoS Pankaj Chaudhary says LTCG tax not under consideration now
If you were hoping for the long-term capital gains (LTCG) tax on stock profits to go away, the government says that's not happening.
Minister of State for Finance Pankaj Chaudhary shared in the Lok Sabha that while they review tax rates every year, "There is no such proposal under consideration," right now.
LTCG collections reach 1,29,158cr
The LTCG tax is 12.5% on profits from selling shares held for over a year, with an exemption up to ₹1.25 lakh annually.
Despite requests from investors to make things fairer between domestic and foreign players, collections from this tax have jumped nearly 78% in just one year, reaching ₹1,29,158 crore in the later year.
Interestingly, Foreign Portfolio Investors are now exempt from income tax on gains from government securities investments thanks to a recent ordinance.