"India" increases "stock sales tax" for holdings not exceeding 1 year. The tax will increase to 20% along with increasing tax on derivative transactions.

"India" increases "stock sales tax" for holdings not exceeding 1 year. The tax will increase to 20% along with increasing tax on derivative transactions. Hoping to alleviate speculation in the stock market.

On July 23, 2567, Bloomberg News reported that The Indian government has raised the tax on sales of shares held less than 12 months to 20% from 15% and the tax on long-term capital gains to 12.5% ​​from 10% for all financial and non-financial assets. The government has also increased the tax exemption limit to 125,000 rupees from 100,000 rupees previously.

along with collecting taxes from derivatives trading It raised the securities transaction tax for futures to 0.02% from 0.0125% and for options to 0.1% from 0.0625% to alleviate speculation in the country's $5 trillion stock market.

After the announcement, the NSE Nifty 50 Index fell by 1.8%.

The move comes as Prime Minister Narendra Modi's government has repeatedly raised concerns about the rapid expansion of derivatives trading. This has been supported by millions of new retail investors since the start of the COVID-19 pandemic.

The Ministry of Finance said on July 22, 67 that such inflows called for careful consideration. This may cause overconfidence. and speculative behavior

However, listed financial assets held for more than 1 year will be classified as long-term assets. While all unregistered financial assets and non-financial assets must be held for at least two years to be classified as long-term assets.

while Nirmala Sitharaman, Minister of Finance of India said unregistered bonds and debentures Debt mutual funds and market-linked bonds regardless of the holding period Tax on capital gains will be payable at the applicable rates.

refer : bloomberg.com

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