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Tuesday, February 5, 2013

Short term capital gain will continue in FY 2013-14


Indian government does not want to abolish the short term capital gain tax on securities which is taxed 15% on listed securities and 30% on unlisted securities. The expert panel has recommended abolishing the short term capital gain to the government for better tax system in India.

The panel which reviewed the anti-tax avoidance agreement which is very controversial recently has recommended abolishing the short term capital gain tax in the coming recent budget to make the more and more people to invest in the equity market as well as FIIs to invest more and make the base in India.

Short term capital gain on securities are taxed at 15% if the securities purchased sold within a year. After one year it is long term capital gain which is zero recently. In case of unlisted securities, long term capital gain, sold after holding of one year or more, is taxed at 20% whereas short term capital gain is taxed at 30%.

The government is not likely to abolish short-term capital gains tax on listed securities despite an expert panel recommendation, sources privy to the matter told FE. Currently, India levies only short-term capital gains on listed securities, while long-term gains are tax-exempt.

But government is not willing to abolish this tax in any condition. Finance Minister also gave the hint that he was unable to narrow tax base any further.
Keywords-short term capital gain,stcg rate in india,stcg on securities,short term capital gain rate in india

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