LTCG Tax Update: In recent times, many leaders of the Indian stock market have advocated the abolition of Long Term Capital Gain (LTCG) from the stock market in the interest of investors. Veteran investor and founder of Helios Capital and Samir Arora have also joined this series. Sameer Karora said that a good government will understand that abolishing long term capital gains tax is the best option for creating wealth for the citizens of the country.
In fact, on the social media platform X, a user named Nirmala Pandey asked Sameer Arora that, in these two situations, which one would you prefer, first – a government that changes the long term capital gain tax or a government that does not make any changes in the long term capital gain tax for the next five years? The user asked Sameer Arora for his opinion.
Hi @Iamsamirarora sir, what would you prefer between these 2 hypothetical scenarios;
1. Same government with changes in LTCG tax;
2. Different government with no change in LTCG tax for the next 5 years at least.
Plz share your valuable view. Thanks@CNBCTV18Live @CNBC_Awaaz— Nirmal Pandey (@nimalpandey) May 22, 2024
Sameer Arora replied to user X, why should there be any controversy on this matter? If the government is good then it will realize that long term capital gains tax is not good for generating wealth for the Indian people. Along with attracting foreign investment, he also advocated disinvestment.
Why should there be a trade off? If the govt is good it will realise that no LTCG tax is the best thing to create wealth for Indian public, attract foreign investments, divest PSUs etc.
— Samir Arora (@Iamsamirarora) May 22, 2024
On whom is LTCG tax levied?
If an investor sells equity shares, equity mutual fund investment after holding it for a year, then the investor has to pay 10 percent long term capital gain tax on the profit amount of more than Rs 1 lakh. If an investor sells his holding in equity shares or mutual fund within a year, then the investor has to pay 15 percent short term capital gain tax. While presenting the budget for the financial year 2018-19, the then Finance Minister Arun Jaitley had decided to impose long term capital gain at the rate of 10 percent on income above Rs 1 lakh.
read this also
