LTCG
How to make gold investments tax efficient after Budget 2024 changed capital gain rules: New STCG, LTCG rates on gold, gold MF, gold ETF, SGB
Gold, a traditional symbol of wealth and prosperity in India, has long been a popular investment choice. The recent changes in capital gains tax rules introduced in Budget 2024 have significant implications for those who invest in gold. We delve into the new short-term and long-term capital gains tax rules and their impact on various gold investment avenues, including physical gold, gold bonds, gold mutual funds and gold ETFs.
Trying to use Capital Gains Scheme Account to cut LTCG tax on indexed gains from 20% to 12.5%? It won't work
LTCG tax on the sale of the house at 12.5%: If a taxpayer has sold the home on or before July 22, 2024, and put the money in a Capital Gains Scheme Account (CAGS), then they need to invest the money in a new residential house before the expiry of the deadline. Otherwise, the indexed long-term capital gains will be taxed at 20% instead of 12.5%.
LTCG tax on sale of house: Can you add home loan interest to property purchase price to cut capital gains tax?
LTCG tax rate on property sale with no indexation: If a taxpayer does not avail of the Section 24 deduction of Rs 2 lakh on interest paid on a housing loan, then the interest cost can be added to the property price to inflate the purchase price. However, what if you opt for a new tax regime and claim no deduction of Rs 2 lakh? Can you still add interest cost to the purchase price to lower the LTCG and tax on it?
No indexation benefit even for LTCG on debt mutual fund investments made before April 1, 2023
These debt mutual funds taxation rules changed: The government has rationalised the capital gains taxation rules. The new tax rules will impact debt mutual fund investments made on or before March 31, 2024, to avail of the indexation benefit. Redemptions and transfers made on or after July 23, 2024, will be taxed at the new LTCG tax rate of 12.5% without indexation benefit, provided debt mutual funds were held for more than 24 months.
No indexation benefit if property sold at a loss: Long-term capital loss to hit taxpayers harder
No indexation benefit on loss: The government has provided partial relief to the homeowners for properties bought before July 23, 2024 and sold after that. However, this relief is available only in the case of LTCG arising from the property sale. If the property is sold at a loss then there is no indexation benefit available.
2 hybrid mutual fund categories offer 16% return in 3 years. Time for a portfolio rejig?
Aggressive hybrid and multi-asset allocation funds delivered an average annual return of 16% over the past three years. Their performance was fueled by positive movements in equity markets, strategic stock picks, and effective debt management. Investors should consider their financial goals when selecting between these funds, with tax considerations as secondary factors.
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No indexation for LTCG tax on property bought after July 23, 2024, is unfair; Will deter long term investment: View
The amendment tabled in the finance bill is a welcome move as it will provide an option to choose between LTCG tax of 20% with indexation or 12.5% without indexation for property. It would encourage honest tax payment, long-term investment and fair play. However, removal of indexation benefit for properties bought after July 23, 2024 and other Long Term Assets classes must be revisited. Here's why.
NRI cannot claim LTCG indexation benefit while selling property in India
LTCG indexation benefit on sale of house property: The government has provided partial relief to the homeowners by providing an option of indexation benefit for properties bought before July 23, 2024. However, this benefit is available only to resident individuals and resident Hindu Undivided Families (HUFs). The capital gains indexation benefit on selling a property is not available to NRI for properties bought before July 23, 2024.
Will new income tax rules encourage crorepati investors to shift from PMS to MF?
The union budget's hike in capital gains tax rates widened the gap between PMS and mutual funds. PMS incurs higher taxes due to frequent portfolio changes, prompting speculation that High Net Worth Individuals might prefer mutual funds for tax benefits. AMFI data suggested increased equity mutual fund inflows, hinting at this possible shift.
Get over LTCG tax shock! 9 booster dosages in Budget 2024 that will reward equity investors handsomely in the long run
Equity sectors to bet: The Budget 2024 has rationalised the capital gains regime taxation. The benefit of indexation has been partially taken away from houses, land and buildings purchased on or after July 23, 2024. The LTCG tax rate on equity has been hiked to 12.5%. However, it has also provided the guidance on sectors that are likely to reward equity investors in long run.
LTCG rules for unlisted shares for NRIs changed; tax rate hiked 25% & foreign currency adjustment removed
LTCG tax for NRIs on unlisted shares: The finance minister has amended the budget proposals to remove the benefit of foreign currency adjustment for long-term capital gains arising from the sale of unlisted shares. The Budget, when introduced in the Parliament, proposed to allow the benefit of foreign currency adjustment.
Realty LTCG: Taxpayers get to choose regime
The Lok Sabha approved the Finance Bill with amendments to the long-term capital gains tax rules, letting taxpayers choose between a new lower tax rate or the old higher rate with indexation. Finance Minister Nirmala Sitharaman defended these changes, highlighting their aim to simplify taxation and benefit the middle class.
New LTCG tax on stocks after Budget 2024: If gains are less than Rs 2.25 lakh in a year, you pay lower tax; here's how
New LTCG tax on stocks after Budget 2024: If the long-term capital gains from stocks and equity funds are up to Rs.2 lakh in a financial year, your tax liability will now be lower. This is because even though the tax rate for long-term gains has been hiked from 10% to 12.5%, the exemption threshold has also been raised from Rs.1 lakh to Rs.1.25 lakh.
Real estate stocks rally on revision of LTCG rules
Buying action surged across nearly all real estate stocks, with the Nifty Realty index climbing approximately 1.5%, driven by gains in DLF, Macrotech, Oberoi Realty, Prestige, and Godrej Properties.
New capital gains tax after Budget 2024: STCG, LTCG rates on equity, debt MFs, ETFs, gold funds; latest mutual fund tax rules
Mutual fund taxation after Budget 2024: Union Budget 2024 has significantly overhauled capital gains tax on various assets, including mutual funds. The holding periods for short-term and long-term capital gains have been rationalised to 12 and 24 months, respectively. Additionally, the indexation benefit on long-term capital gains has been removed, leading to a uniform tax rate of 12.5% for all asset classes. Short-term capital gains tax on equities and equity-oriented funds has been hiked to 20%. These changes will have a substantial impact on mutual fund returns.
No change in LTCG in medium term: Revenue secretary Sanjay Malhotra
Revenue secretary Sanjay Malhotra said the government had studied 1.05 million returns for 2023-24 that showed capital gains from land and building. The effective LTCG tax rate on these was 11.54% on real estate in 2022-23, he said. The budget announced removal of indexation benefits for LTCG on properties but slashed the tax rate to 12.5% from 20%, fuelling concerns over an increase in tax burden.
Govt mopped up Rs 98,681 cr from taxing long term capital gains in listed equities in FY23: M0S Pankaj Chaudhary
The government collected Rs 98,681 crore from long term capital gains (LTCG) tax on listed equities in 2022-23, a 15% increase from the previous year, said Minister of State for Finance Pankaj Chaudhary in Rajya Sabha. The LTCG tax on equities, introduced in 2018, was increased to 12.5% in the 2024-25 Budget. No proposal to abolish LTCG tax is being considered.
New capital gains tax rules on property: Can you add stamp duty, home loan interest amount to property cost to lower LTCG tax?
Budget 2024 has reduced the tax on long-term capital gains arising on the sale of immovable property from 20% to 12.5%, without indexation. Taxpayers took to social media platforms to voice their concerns on how property prices will be calculated to determine long-term capital gains following Budget 2024. Does the Finance Act, 2024, amend the rule to calculate the property's base price? Can you add stamp duty, home loan interest amount to your property's cost while calculating capital gains during sale now? All your queries on new capital gains rules on property answered.
The bar for PMS fund managers to please crorepati investors just got higher after Budget
Recent tax changes in the Union Budget have increased capital gains tax rates, complicating the task for PMS fund managers to generate higher post-tax returns compared to mutual funds. Despite a historical trend of outperforming mutual funds, PMS schemes now require higher annual returns to stay competitive. Long-term strategies are less impacted, while short-term focused approaches suffer.
A comparative look at India's LTCG rates in tandem with peers like UAE, Singapore, China, USA and others
The Union Budget 2024 significantly altered India's capital gains tax regime. LTCG tax rates rose from 10% to 12.5%, and the indexation benefit was removed. These changes aim to simplify the tax system and align India with global standards, making it a competitive investment destination for domestic and international investors.
I-T dept clarifies acquisition cost of real estate bought before 2001 for LTCG calculations
The Indian Taxation Service (I-T) has announced that the cost of acquisition for real estate properties purchased before 2001 will be the fair market value (FMV) as of April 1, 2001, or the actual cost of the land or building for the calculation of long-term capital gains (LTCG) tax. The FY25 Budget has reduced LTCG tax on real estate to 12.5%, from 20% previously.
Are LTCG tax rates in India too high? Here is a look at tax rates in other major economies
India’s Union Budget 2024 introduced simplified capital gains tax rates, increasing short-term capital gains on equity to 20% and long-term capital gains to 12.5%. These changes aim to rationalize the tax structure. In contrast, China, Australia, France, Germany, Japan, Singapore, Sweden, and the US showcase diverse approaches, reflecting their unique economic policies.
Capital Gains Tax FAQs: What are the major changes brought about in LTCG & STT in Budget? All queries answered
Capital Gains Tax Budget 2024: India's Budget proposed significant changes in the taxation of capital gains, aiming for rationalisation and simplification. Key changes include a simplified holding period with only two categories, uniform rates for most assets, removal of indexation, parity between residents and non-residents, and maintaining roll over benefits. The new provisions are effective from 23.7.2024. Here's all your questions answered by the government.
Budget 2024: Realty, banks, defence among 9 sectors that appear short term losers. Here's why
As the dust around the Union Budget 2024 settles down, potential losers in the market as a result of announcements or rather lack of it, are coming to the fore.
Look beyond capital gains tax! Brokerages scream buy on over 50 ideas post Budget 2024
Analysts recommend over 50 stock picks post Budget, including Ultratech, HUL, ICICI Bank, TCS, and more. Industries like agro-chemicals and automobiles are expected to benefit.
Sensex, Nifty edge lower as tax hike on capital gains dents sentiment
Equity indices in India opened lower post-capital gains tax hike. Sensex down 0.05% at 80,396; Nifty50 0.11% lower at 24,451 by 9:20 am. Indices fell up to 1.6% Tuesday but recovered on rural program boost in Budget.
Is Union Budget 2024 too harsh for stock market? 5 key takeaways for investors
Union Budget 2024 by Finance Minister Sitharaman raised STCG to 20%, LTCG to 12.5%, increased exemption limits, and hiked STT on F&O. It proposed taxing buyback income and aligned it with dividends, allowing capital loss offset. Analysts such as Ashish Nanda and Sanjay Sinha foresee market consolidation and balanced sectoral growth, focusing on fiscal responsibility and employment generation.
Budget 2024: LTCG, STT withdrawal on D-Street’s wishlist for FM Sitharaman
The demand is to levy a uniform 10% tax (plus applicable surcharge and cess) on equities held for more than one year and up to three years on the capital gains exceeding Rs 2 lakh in a financial year. Moreover, a full exemption from capital gains tax if held for more than three years, by suitable amendments to section 112A.
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