For 14 long years, stock market investors have taken all their long-term capital gains (LTCG) to the bank. That ends from 1 April 2018.
While the markets have taken it in their stride, the government will be anxious to see if the LTCG tax indeed brings in revenues; else, it could end up as a measure that attracts more criticism than revenue.
Starting 1 April, LTCG tax on the sale of equities will be applicable on gains exceeding Rs1 lakh in a financial year. The tax rate is 10%. While domestic brokerages say they have witnessed some profit booking and do not foresee any further impact, there are questions about foreign flows.
