Pitched against a bunch of hopes and expectations from industry and individuals alike, Finance Minister Arun Jaitley presented his last full Budget before the general elections. While Union Budget 2018 brings about an array of direct tax amendments, two among them stand out: the re-introduction of capital gains tax on long-term listed equity securities and the extension of the lower corporate tax rate to a much larger group of corporations.
Here are some key takeaways from the Union Budget 2018 from a direct tax standpoint:
Capital gains tax on long-term listed equity securities
Union Budget 2018 introduces a new regime to tax long-term capital gains sale of equity shares, units of equity-oriented funds and units of business trusts, which are exempt under the existing regime (provided that securities transaction tax is paid on the same). From April 1, 2018 onwards, long-term capital gains arising on these securities shall be taxable at the rate of 10 per cent (on gains in excess of Rs 1 lakh).