Increase in LTCG tax from 10% to 12.5% Increase in STCG tax from 15% to 20% Sharp increase in STT on futures and options trade
Market guru Shankar Sharma expresses disappointment Samir Arora of Helios Capital critiques the tax hike
2004: STT replaced LTCG tax 2018: Budget reintroduced LTCG tax at 10% on gains over Rs 1 lakh 2024: New revisions in STT, STCG, and LTCG
LTCG tax for equities remains at 12.5% Different rates for real estate, gold, debt mutual funds, etc.
There is no bifurcation between long-term and short-term in most jurisdictions. Equal taxation on asset classes, unlike India.
Taxed based on overall taxable income Rates: Nil, 15%, or 20%
Exempt from share sales in secondary markets. 20% tax on real estate and other asset.
Brazil: Progressive rates from 15% to 22.5% Japan: Total rate of 20.315% for stock sale
Subject to normal personal income tax rate. 50% discount for assets held over 12 months.
India's LTCG hike is seen as competitive globally. Encourages long-term investment in the Indian market. Market players are expected to adapt to the change.