Long term capital gains from the sale of shares thro’ stock exchanges would be exempt from tax. This is a major relief as the earlier version of the DTC had proposed to tax long term capital gains on sale of shares.
DTC Bill proposes to tax short-term capital gains arising from stocks and mutual funds at half the marginal rate.So, if your marginal tax rate is 30 per cent, you will pay a short-term capital gains tax at 15 per cent.The move benefits small investors. Individuals whose marginal tax rate is 20 per cent or 10 per cent will pay only 10 per cent and 5 per cent respectively, against the current reg-ime where they pay 15 per cent.
Tax payer in the highest tax bracket will pay 15 per cent as short-term capital gains tax, which is equivalent to the current tax of 15 per cent.
