March 23, 2011 11:43 pm
Will the treatment of long-term capital gains change with the Direct Tax Code?
Could someone share details on how long-term capital gains will be taxed once DTC is in effect?
Dear Ram, yes the calculation of holding period is to be done from the end of FY as per the current form of revised DTC but it’s yet to be passed as an act by parliament & there may still be some changes here & there in DTC.
For persons/investors who are holding for real long terms say 10+ years, these limitations as proposed in DTC are not any hurdle.
Thanks Ashal. I guess things will be fully clear after the final DTC comes. Hopefully they will change this holding period definition because it doesn’t do any good for the people.
Dear Ram, the LTCG from Eq. & Eq. MFs ‘ll remain tax free like the present system.
LTCG from Debt MFs & other asset class, ‘ll remain taxable although with a new indexation series effective from 2001.
Thanks for your reply.
The definition of “long term” will depend on the new definition of “holding period” right? So holding period will be calculated from the end of FY in which the purchase was made, right? Or has this changed after review?
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