InvestorQ : Is a hike in Long Term Capital Gains tax (LTCG) on the cards?
riya Ranade made post

Is a hike in Long Term Capital Gains tax (LTCG) on the cards?

1 year ago
There have been murmurs of an LTCG hike on share sale. However, this should ideally be avoided. Companies, businesses, and individuals pay income tax on their income. Charging capital gain taxes or dividend taxes (On the distribution of tax paid profits) is nothing but double taxation on the same profit. India has an extremely high rate of capital gains taxes and dividend taxes.

Resident individuals and HUF’s end up paying dividend taxes at an effective rate of 35.88% and non-residents at a rate of 23.92%. LTCG also attract an effective rate of 28.50% taxes for high-income groups and short-term capital gains taxes at 42.74%. Taxes which were already higher have been increased by surcharges for super-rich from last year onward. Similarly, taxes are on the higher side for investment funds, REIT’s AIF’s and FPI especially for unlisted shares, which is the most common case for smaller and medium-sized businesses.