31 January 2023
In a pre-Budget 2023 TOI-Deloitte survey, the majority of respondents recommended that Finance Minister Nirmala Sitharaman increase the yearly tax-exempt ceiling of Rs 1 lakh for long-term capital gains. The limit should be raised, according to more than 93% of survey participants. The Union Budget 2023 will be delivered on February 1, 2023, by FM Nirmala Sitharaman. On January 31, 2023, the Parliament’s budget session will get underway. Participant categories in the TOI-Deloitte survey were common people/individual taxpayers, retail investors, start-ups, corporations, and the economy.
The current capital gains tax framework, according to participants in the retail investor category, is exceedingly complex. A majority of respondents (over 67%) claimed that the capital gains tax system is complex. The existing capital gains tax framework in India, according to Saraswathi Kasturirangan, Partner at Deloitte India, is complicated. “The holding period used to determine whether capital gains are long-term or short-term depends on the asset’s characteristics. Tax rates and the availability of indexation benefits vary depending on the asset, “She told TOI.
When asked what adjustments should be made to simplify the capital gains tax system, 58% of respondents agreed that Budget 2023 should standardize a one-year holding period for long-term gain, regardless of the type of asset. More than 80% of respondents indicated that the capital gains tax structure for investment options including stocks, mutual funds, and insurance is still very complicated because different asset classes are taxed differently. According to Saraswathi “The administration may think about simplifying the holding period regulations. The hope is that the holding period will be shortened to at least 2 categories from the current 3 categories. “