[volkman10]

Stock market in red as 2024 budget unfolds:

[volkman10]

Taxation after the 2024 budget:

[whitewing]

Originally Posted by volkman10

Taxation after the 2024 budget:

The Major impact is the doing away of indexation benefits. Bound to rake in revenue to the Govt.

[rx100]

Originally Posted by whitewing

The Major impact is the doing away of indexation benefits. Bound to rake in revenue to the Govt.

But with the risk of more cash transactions in Real Estate

[SoumenD]

Originally Posted by volkman10

Taxation after the 2024 budget:

Attachment 2631224

So LTCG for foreign equity investments that was similar to Debt funds is changed now to 12.5% flat? If so, that's somewhat good news. But is it only for FoFs like Navi Total US or MO S&P500 also will be treated with flat 12.5% tax?

[saket77]

I can understand the increase in STCG that the government wants to limit people taking short term bets, but increasing LTCG is a regressive step. Plans of most long term investors banking on equity returns to earn some extra money to finance their retirement/ children’s education/ etc will take a big hit. The 1.25L haircut in gains is inconsequential anyway.

Edit: Also, I don’t think this is going to stop here. In the long run, in combination with the new tax regime, I think all gains and earnings including salary or business income will be treated as income and taxed at a flat rate.

[ottocycle]

Are the changes to LTCG taxes applicable to both new as well as old tax regime? Or just for new tax regime?

[thanixravindran]

Originally Posted by saket77

I can understand the increase in STCG that the government wants to limit people taking short term bets, but increasing LTCG is a regressive step. Plans of most long term investors banking on equity returns to earn some extra money to finance their retirement/ children’s education/ etc will take a big hit. The 1.25L haircut in gains is inconsequential anyway.

True. Though over simplified, below picture from Twitter sums up the mood today

[saket77]

Originally Posted by ottocycle

Are the changes to LTCG taxes applicable to both new as well as old tax regime? Or just for new tax regime?

Applicable to all. No exceptions.

[vj_torqueaddict]

So if I understand this correctly, real estate prices will shoot to the moon and further out of reach for salaried class, with new budget ? As the taxes have been reduced for LTCG?

[rx100]

Originally Posted by vj_torqueaddict

So if I understand this correctly, real estate prices will shoot to the moon and further out of reach for salaried class, with new budget ? As the taxes have been reduced for LTCG?

With the reduced LTCG, they removed indexation benefits. So in the end taxes costs more, unless one made a windfall profits during sale.

[PearlJam]

Any idea if the LTCG indexation benefits on debt funds bought on or before 31-march-2023, still applies? If yes, is that LTCG still 20%? If no, then will the LTCG be 12.5% or the applicable tax rate? Thanks!

[argchoff]

Last time when the government imposed 10% capital gains tax on equities there was a grandfathering clause which stated that any investment after 31st January 2018 would be taxed only. Investments before that day were not taxed as per the grandfathering clause.

Has any such provision given for the latest 12.5% capital gains tax? Or are all investments going to be taxed at 12.5 %regardless of date of investment?

There seems to be no clarity /information regarding this.

[volkman10]

Originally Posted by PearlJam

Any idea if the LTCG indexation benefits on debt funds bought on or before 31-march-2023, still applies? If yes, is that LTCG still 20%? If no, then will the LTCG be 12.5% or the applicable tax rate? Thanks!

Originally Posted by argchoff

---

There seems to be no clarity /information regarding this.

Your answers could be in the below sheet.

[DigitalOne]

Originally Posted by volkman10

Your answers could be in the below sheet.

Thanks!! This clarifies a lot. Hope the folks at Karvy/CAMS are up to the task of programming this complexity. This year (FY 2023-24) itself, I found a discrepancy between the CG statement generated at MFCentral vs CAMS with respect to a Franklin Templeton Vodafone segregated fund. Next year will be a mess. I certainly don't intend to do it on my own .

Also, I hope there is no effect on already purchased Sovereign Gold Bonds at the time of maturity.