Skip to main content

Industry and tax experts seek one tax on capital gains in listed funds

By
 Industry and tax experts seek one tax on capital gains in listed funds
Consultants PwC India recommended levying either securities transaction tax (STT) or capital gains tax on listed securities, instead of levying both Industry and tax experts have pitched for a single levy on capital gains of listed securities, besides a reduction in the equalisation levy and abolition of minimum alternate tax (MAT), to a high-level panel looking into the overhaul of the 60-year-old income tax law
The government had set up a committee under Central Board of Direct Taxes (CBDT) member Arbind Modi to look into the income tax systems in various countries and global best practices, among others. The panel is drafting the New Direct Tax Legislation and is likely to submit its report by May 31. It is also expected to revisit the income tax slabs, while widening the tax base.
Consultants PwC India recommended levying either securities transaction tax (STT) or capital gains tax on listed securities, instead of levying both. The government has imposed long-term capital gains tax on listed securities from the current financial year, but has retained STT as well.
Multiple taxes on the same transaction increase costs and make the Indian capital market unattractive for investors. There should be a single tax levy (either STT or capital gains) instead of the current regime of levying both,” PwC said.PwC India also suggested a reduction in the equalisation levy to align it with the EU proposal of 3 per cent.
Naveen Wadhwa, tax expert with Taxmann, said while easier procedures were required, law should be tweaked by deleting redundant provisions. Another expert said there were 872 sections in the Income Tax Act, 694 rules and 253 forms, making the whole law complex.Abhishek Rastogi, partner with Khaitan & Co, said the limit for presumptive taxation should be raised from Rs 5 million to Rs 10 million. Section 44 of the Income Tax Act deals with presumptive taxation on professionals and treats 50 per cent of the income as profits and imposes tax.Huge backlog in litigation and distrust between tax administrators and taxpayers was the core issue, said Ashok Shah, partner, NA Shah Associates.


The Busiess Standard, New Delhi, 07th April 2018

Comments

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more