Union Budget 2024: Will Budget 2024 Reshape Capital Gains Tax? Brokerages Ask for Overhaul, Review of LTCG Removal

New Delhi: With the Interim Budget 2024 to be presented in just a few days, experts and brokers expect the government's primary focus to continue to be on promoting economic growth through capital investment and infrastructure development.

Sunil Nyati, managing director of Swastik Investsmart Limited, has said that the government should reconsider the elimination of long-term capital gains (LTCG).

"I advocate reconsideration of removal of Long-Term Capital Gains (LTCG) or Securities Transaction Tax (STT) to further support equity culture in India," he added.

Puneet Mishra, Partner, M&A Tax & Regulatory Services, BDO India has sought changes in capital gains. Currently, capital gains are taxed as long-term or short-term depending on their holding period, and the tax rates on these capital gains vary, creating complexity.

"Rationalizing and standardizing the capital gains regime with respect to several aspects, such as, streamlining of long term or short term periods, uniformity in long term / short term tax rates across various asset classes, change in base year for indexation for long term. Term capital gains etc. The scale will be favorable to the investor community. Aligning these changes with the government's vision to promote taxpayer-friendly initiatives like common income-tax return forms, annual information statements, etc. can increase overall compliance," Mishra said.