Union Budget 2018: FM Arun Jaitley Proposes 10% LTCG Tax On Equity Gains Above Rs 1 Lakh

SENSEX, NIFTY FALL AS LONG-TERM CAPITAL GAINS TAX MAKES A COMEBACK

The big fear of the market has come true. Jaitley has brought back the capital gains tax effective immediately. The measures taken by the current government have made the equity markets buoyant, he said.

The finance minister has proposed a 10 percent long-term tax on equity gains above Rs 1 lakh.

FM Proposes:

  • To Propose 10 Percent LTCG On Equity Gains Above Rs 1 Lakh
  • LTCG On Shares Purchased On Or Before Jan 31 To Be Grandfathered
  • STCG Tax On Gains Made Under 1 Year To Remain At 15 Percent
  • LTCG To Be Effective Immediately

NO CHANGE IN STRUCTURE OF INCOME TAX FOR INDIVIDUALS

Government’s Tax Proposals

  • To Allow 100 Percent Deduction To Some Farmer Producer Companie
  • To Extend Reduced Corp Tax Of 25 Percent To Companies With Rs 250 Crore Turnover
  • No Change In Structure Of Income Tax For Individuals
  • Senior Citizen Deduction For Health Insurance Raised To Rs 50,000


Other Tax Proposals:

  • Customs Duty On Mobile Phones Raised To 20 Percent From 15 Percent
  • Custom Duty On Raw Cashew Reduced To 2.5 Percent From 5 Percent
  • Custom Duty On Some Mobile And TV Parts Increased To 15 Percent

 

 

FM Jaitley Lauds India’s Growing Tax Base

  • Achieved 18.6 Percent Direct Tax Growth As Of Jan. 15 FY18
  • India Has 8.27 Crore Income Tax Payers As Of FY17
  • 41 Percent More Tax Returns Were Filed This Year
  • To Allow 100 Percent Deduction To Some Farmer Producer Companies
  • Revenue Forgone Due To Corporate Tax Widening At Rs 7,000 Crore



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