Cannot become Viksit Bharat without taxing capital gains appropriately: Fin Secy Somanathan

• India cannot achieve the status of Viksit Bharat without appropriately taxing capital gains, according to Finance Secretary TV Somanathan.
• Somanathan emphasized that earners of capital gains are not poor and should be taxed at a decent rate.
• The recent hike in long-term capital gains tax (LTCG) to 12.5% from 10% is part of a move to simplify and make the capital tax regime more uniform.
• Somanathan defended the tax hike by stating that India's rate of capital tax on long-term listed equities is low by global standards.
• The Union Budget for 2024-25 also increased the short-term capital gains tax to 20% on specified financial assets.

Source: Moneycontrol