India isn't considering any proposal to abolish long-term capital gains taxes on mutual funds and equities or extend its timeline from one year to two years, according to Pankaj Chaudhary, minister of state for finance.
The revenue on LTCG for assessment year 2020-21, that's financial year 2019-20, amounted to Rs 5,311.87 crore, the minister said in a reply to a question in the Rajya Sabha during the ongoing winter session. That's a 53.5% jump over assessment year 2019-20.
The figures are inclusive of LTCG on:
Listed securities on zero coupon bond without indexation.
Unlisted securities of non-residents.
Equity shares of equity-oriented fund of business trust on which securities transaction tax is paid.
Income arising from the transfer of units purchased in foreign currency by offshore funds.
Transfer of bonds purchased in foreign currency by resident or non-resident.
Gains by a foreign institutional investor or income chargeable at special rates in India as per double taxation avoidance agreement.
Long-term capital gains exceeding Rs 1 lakh arising from the sale of listed equity shares on exchanges or mutual fund units are subject to tax at the rate of 10% (plus applicable surcharge and cess).
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