InvestorQ : Is it true that the long-term capital gains (LTCG) tax was applicable to Indian citizens even before Budget 2018?
varsha Motwani made post

Is it true that the long-term capital gains (LTCG) tax was applicable to Indian citizens even before Budget 2018?

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2 years ago
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Yes, it is true that Indian investors had to pay LTCG tax pre 2004.

LTCG tax was withdrawn in 2004 when P Chidambaram presented the Union Budget and introduced Section 10(38) in the Income Tax Act, 1961, to attract investment from foreign investors (FIIs). This was done on the basis of the Kelkar Committee report.

Section 10(38) was used to provide an exemption from the long-term capital gains tax which arose on the sale of shares or units of an equity-oriented mutual fund. Prior to this, investors had to pay LTCG tax.

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