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Government can remove the complexities related to capital gains tax, opinion of tax experts
Capital Gain Tax: Last Friday, the market fell by more than 1000 points due to the news of equal tax on long-term and short-term capital gains received from the stock market. Later Finance Minister Nirmala Sitharaman had to say on Twitter that this was a complete rumour. However, tax experts are saying that many things are unclear and complex regarding capital gains tax.
The announcement of a uniform tax on both short-term and long-term capital gains from the stock market last Friday caused the market to drop by over 1,000 points. The Finance Ministry needs to provide the truth about this matter, as Finance Minister Nirmala Sitharaman had to later state on Twitter that this is all just a rumor.
Still, tax experts assert that there are a lot of ambiguous and complicated aspects of capital gains tax that should be simplified and made understandable for taxpayers. Following the formation of the new government, it is anticipated that these may change.
Tax experts say that capital gains tax is not imposed only on income from the stock market, capital gains tax is imposed on many things like mutual funds, the sale of property, transfer of shares of unlisted companies. There are complexities in the taxes related to these which taxpayers do not understand properly, hence the new government can make changes in it. Deductors are also facing problems regarding Tax Deducted at Source (TDS) and there may be changes in these also. A large number of TDS deductors are receiving notices.
