Amid concerns over the correction in the stock market due to the increase in capital gains tax on shares, Finance Secretary TV Somanathan on Thursday asserted that the fall in the stock market is not a cause of concern for the government.
Indian markets closed on a decline on Thursday, a day after the government proposed an increase in capital gains tax and a hike in the Securities Transaction Tax for F&O transactions in the Union Budget
The real estate sector has cautioned the government that the proposal to remove indexation benefits for long-term capital gains in real estate will hurt the growth of the sector.
The changes in the capital gain taxes have been announced to make the rates simple to understand people so that they can understand their tax rates well, said Revenue Secretary, Sanjay Malhotra.
In what may come as somewhat dampener for stock market investors, Finance Minister Nirmala Sitharaman as part of her Budget speech on Tuesday announced an increase in both long term and short term capital gains.
With the Union Budget 2024 around the corner, Indian financial markets, corporates, and entrepreneurs have various expectations from the government. Many have voiced their requests and made presentations before the government as part of pre-budget consultations.
Subhrakant Panda, Immediate Past President of FICCI, stated, "Simplification of capital gains tax was on our agenda, and the government is actively considering it. While the direction is yet to be determined, it remains a significant focus."
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