Finance Minister Nirmala Sitharaman started pre-Budget 2023 consultations from Monday, starting with industry leaders and experts on infrastructure and climate. During the meetings, the participants make suggestions for the 2023-24 budget, which will be presented to parliament by the Minister of Finance on 1 February.
Pre-budget meetings with union representatives and economists are scheduled for November 28. She will also meet representatives of the service sector and trade organizations, alongside experts from the social sector, including health, education, water and sanitation, on November 24. .
“Union Treasury Secretary Smt. @nsitharaman is chairing her 2nd #PreBudget2023 meeting with the second group of industry leaders and #Infrastructure and #ClimateChange experts today in New Delhi,” the finance ministry said in a tweet on Monday.
It also said: “The 2nd #PreBudget2023 meeting is attended by MoS Finance Shri @mppcchaudhary and dr @DrBhagwatKarad; Finance Minister Dr TV Somanathan; Secretaries of DEA, @SecyDIPAMArid, @DFS_IndiaCEA dr. Anantha Nageswaran & Senior Economic Adviser @FinMinIndia.“
According to the recent reports, the government is planning to change its capital gains tax structure in the 2023-24 budget to bring parity across different asset classes such as stocks, debt and real estate to tax them uniformly. A Reuters report quoted an official as saying that asset classes are not currently taxed uniformly and have different holding periods for capital gains tax purposes, which need to be aligned.
According to the Reuters report, the government has received several proposals from the industry to simplify the capital gains tax structure and changes are expected in the 2023/24 budget.
According to a PTI report, the chairman of the Central Board of Direct Taxes (CBDT), Nitin Gupta, also said of the possible tinkering with capital gains tax: “It is part of the budget process, cannot be disclosed.” from the sale of capital goods — both movable and immovable — are subject to ‘capital gains tax’.
Depending on the period for which an asset is held, long-term or short-term capital gains tax is levied. The law provides for separate tax rates for both categories of profits. The calculation method also differs for both categories.
In India, taxes are currently levied on investment gains based on a lock-in or holding period. Investments in shares or share-linked mutual funds for more than one year are considered long-term investments and attract a 10 percent tax on profits in excess of Rs 1 lakh. Equity investments held for up to one year are considered short-term and subject to 15 percent tax.
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