The Finances has raised the tax on long-term capital good points (LTCG) for listed bonds, debentures and listed choice shares to 12.5 per cent from 10 per cent for overseas institutional buyers consistent with listed shares and fairness oriented mutual funds.
“It was seen that whereas the charges of taxation within the case of specified fund or FIIs in case of long-term good points referred to in part 112A have been delivered to parity with the charges relevant for residents, the speed of income-tax calculated on the revenue by the use of long run capital good points not referred to in part 112A had been retained at 10 per cent vide Finance Act, 2024,” the Finances doc mentioned.
Part 112A gives for LTCG tax on the sale of listed fairness shares, equity-oriented mutual funds and enterprise belief. The speed of tax on these listed securities was raised to 12.5 per cent from July 23, 2024 for good points exceeding ₹1.25 lakh.
Sunil Gidwani, Companion, Nangia Andersen, mentioned: “Final yr when the LTCG tax charges had been modified for residents, the tax charges for FPIs on shares, fairness mutual funds and enterprise trusts had been modified to 12.5 per cent, too. However LTCG on different property equivalent to G-secs, bonds and NCDs had been not noted, maybe inadvertently, and continued to be taxed at 10 per cent. That is sought to be corrected.”
