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New Delhi: The reports around the government’s plan to revamp the capital gains tax structure have been circulating in the media for the past few days. Clearing the air around the matter, ANI quoted Finance Ministry sources as saying that there is no plan of the government to revamp the existing tax structure.
The tweet read, “There is no move to revamp the capital gains tax structure as of now, as alleged in some media reports. Any such reports are in the realm of speculation: Finance Ministry sources.”
There is no move to revamp the capital gains tax structure as of now, as alleged in some media reports. Any such reports are in the realm of speculation: Finance Ministry sources pic.twitter.com/b8eCw0wzdd
— ANI (@ANI) March 15, 2022
Media reports had stated that the government was likely to revamp the capital gains tax in the next year’s budget. The was to be done to augment revenue collections and boost the spending on welfare schemes.
The reports further added that the government might revamp the tax structure because of its philosophy that passive income earned through capital markets cannot be taxed lower than the income earned through business as it includes entrepreneurial risks.
For the unversed, the short term capital gains on equities are taxed at 15 per cent in India. In the post-Budget interaction, Revenue Secretary Tarun Bajaj, according to Mint, said that the capital gains tax structure in India is too complicated and needs to be revamped.
However, with the latest reports, it remains to be seen if the government will go ahead with the relook or not.
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