I said this in 2016. Glad that Modi Govt has corrected the anomaly by bringing in the LTCG Tax on equities. As next step, indexation must be allowed and rate must be raised to be on par with other asset classes.
Those outraging on reintroduction of LTCG on equities:
1)Why shuld Govt discriminate b/w diff asset classes?
2)All countries tax LTCG on equities. Why shud poor India be an exception?
3)Penny stocks are manipulated to legally launder Black money. Shud this continue?
1)Why shuld Govt discriminate b/w diff asset classes?
2)All countries tax LTCG on equities. Why shud poor India be an exception?
3)Penny stocks are manipulated to legally launder Black money. Shud this continue?
Those saying LTCG Tax spooks retail investors who started entering Equity Mutual Funds:
1)Gains locked-in so far are grandfathered
2)Most retail investors wont be making a gain of 1 lakh in a year (i.e. sell 5-6 lakh of equity), hence zero tax
1)Gains locked-in so far are grandfathered
2)Most retail investors wont be making a gain of 1 lakh in a year (i.e. sell 5-6 lakh of equity), hence zero tax
Although one anomaly is that they have not allowed indexation, in a trade off for low rate. In my view this a only a start, and sooner than later indexation will be allowed (with or without rate increase).
In absence of indexation, retail investor has an incentive to (needlessly)churn the portfolio every year and lock in the gains. Makes no sense.
On plugging the Black Money holes, Modi Govt has been bold and beautiful. Nominal LTCG Tax on equities must be seen in continuation. 
