Revenue department to further simplify capital gains tax provisions

Revenue Dept in favor of further simplification of capital gains tax provisions, sources say

Simplification could provide ease of compliance & clean up of complex law, Revenue Dept says

  • Revenue Dept studying capital gains tax provisions for further simplification
  • Once approved, new provisions could be part of budget announcement

REVENUE DEPT’S VIEW

  • Simplification of capital gains tax possible
  • Simplification could provide ease of compliance & cleaning up of complex law
  • To remove disparity b/w fin instruments falling under similar categories

PROPOSALS UNDER CONSIDERATION

  • Have 3 broad categories of assets: equity, non-equity fin & non-fin
  • Remove rates & hldg period disparity for both short & long-term for non-eq fin assets
  • Revise indexation base of non-fin assets, revise to recent yrs from current 2001 base year
  • Sources say CNBC-TV18

1 thought on “Revenue department to further simplify capital gains tax provisions”

  1. Nanda Kumar M Madathil

    May be based on the experience gained by Dept , they can fix up a standard tax rate of Capital Gains instead of the cumbersome calculation based on inexation .. Claims of modification of capital assets etc are not verified by the Dept … The rate of taxation may be kept as say 2% or 5% or any rate as felt by the dept from their experience on the recorded sales value in deeds or if there are suspicion of under valuation ( through application of indexation rates ) … virtually taxation on sales proceeds applying a suitable rate … this may simplify the process ,,

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