With Union Budget 2023 round the corner, finance minister Nirmala Sitharaman is once again inundated with many a wish lists. One area that finds a mention every year in the run up to the Budget is the capital gains tax (CGT) regime . Given the many disparities in the extant regime, there is a need to simplify it. In this column, we will highlight some of these disparities. It looks likely that the finance minister may pay special attention to it this year, given the comments made by the Central Board of Direct Taxes chairman and others hinting at structural changes in the manner in which capital gains are taxed. However, the tax authorities have been reticent about the specifics of these changes. Nevertheless, we expect certain structural changes focussing on rationalizing the CGT structure by bringing in more parity, simplifying categorization, etc.
