SIMPLIFIED CAPITAL GAIN TAX RATES FOR BETTER PUBLIC UNDERSTANDING: REVENUE SECRETARY

The changes in the capital gain taxes have been announced to make the rates simple so people can understand their tax rates well, said Revenue Secretary, Sanjay Malhotra.

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“Our intention is to make it simple, and reasonable,” Malhotra told ANI, reacting to the announcements.

As part of the Union Budget, Finance Minister Nirmala Sitharaman announced that short-term gains on certain financial assets attract a tax rate of 20 per cent, while that on all other financial assets and all non-financial assets shall continue to attract the applicable tax rate.

The Finance Minister proposed that the long-term gains on all financial and non-financial assets will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, she proposed to increase the limit on the exemption of capital gains on certain financial assets from Rs 1 lakh to Rs 1.25 lakh per year.