Long Term Capital Gain Tax: While presenting the budget for the year 2024-25, Finance Minister Nirmala Sitharaman has increased the Long Term Capital Gain Tax from 10 percent to 12.50 percent. The Finance Minister’s announcement is being criticized on social media, but on Monday, Leader of Opposition Rahul Gandhi said, the government has stabbed the middle class in the chest by increasing the long term capital gain tax. Now according to the data that has come out from Parliament, when the decision to impose long term capital gain tax was taken in the financial year 2018-19, there has been a jump of 237 percent in this tax collection in the six years since then.
During the Question Hour in Rajya Sabha, Rajya Sabha MPs Javed Ali Khan and Ramjilal Suman questioned the Finance Minister about the long term capital gain tax. They asked the government, how much tax has been collected so far through the long term capital gain tax since it was imposed in 2018? Responding to this question in writing, Minister of State for Finance Pankaj Chaudhary said, in the financial year 2018-19, the government earned Rs 29,219.70 crore for long term capital gain tax. In the financial year 2019-20, it increased to Rs 26,007.85 crore.
In the financial year 2020-21, which was affected by Corona, the government earned Rs 38,588.80 crore through long term capital gain tax. In the financial year 2021-22, LTCG tax collection doubled and the government earned Rs 86,075.49 crore through this tax. In the financial year 2022-23, the government has got Rs 98,681.34 crore by imposing long term capital gain tax on equity. In just six years of imposing long term capital gain tax, the government’s income through this tax increased by 237.72 percent in 2022-23 as compared to the first year of implementation, 2018-19. By imposing this tax, the government has earned Rs 2,78,573.18 lakh crore in six years. One reason for this is the strong boom in the stock market.
No intention to abolish LTCG tax
Javed Ali Khan and Ramjilal Suman asked the government, is the government considering abolishing long term capital gains tax on equity mutual funds from 2024-25? Responding to this question, the Minister of State for Finance said that the government has no intention of abolishing long term capital gains tax on shares and mutual funds in the financial year 2024-25.
Long term capital gains tax increased
While presenting the budget for the financial year 2024-25 on July 23, the Finance Minister increased the long term capital gain tax from 10 percent to 12.50 percent. Domestic and foreign investors were extremely disappointed with this decision of the Finance Minister and there was a sharp decline in the stock market. The opposition is attacking the government over the increase in long term capital gain tax.
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