Long-Term Capital Gains Tax

amish

Star gazer
Regulars
Jul 3, 2006
24,682
1,065
Mumbai
With this move Government effectively will make atleast 10% on every stock market transaction where there is profit.

Short term profit = 15% tax
Long term profit = 10% tax

So for example assume that this LTCG tax was implemented in 2014

So sensex went from about 23000 in 2015 to 36000 right now.

Government would earn money equivalent to 1300 points (10% of 13000) of Sensex.

I am sure this goes in to billions and billions.

Funny thing is there is NO concept of Long term capital loss set off.

Which means... when market goes up Government earns a lot of money.

And when market goes down Government LOSES nothing.. only common man lose money.
 

Sushubh

Administrator
[OP]
Oct 29, 2004
415,498
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Gurugram
i am guessing they also charge 18% on every transaction cost.
 


amish

Star gazer
Regulars
Jul 3, 2006
24,682
1,065
Mumbai
i am guessing they also charge 18% on every transaction cost.
No there is STT on every transaction and its not for JUST profit. Its on WHOLE AMOUNT of transaction.

Its 0.1% (plus 18% service tax on it!!)

Percentage looks small...but dont forget its on WHOLE AMOUNT and both party pays - buyer as well as seller.

And billions of rupees shares transacted every day. So effectively its a huge amount that government earns everyday.

Not to forget STT on intraday (which is 0.025%). And futures and other areas!!