VIEWS OF ANMI PRESIDENT, K SURESH ON THE INTRODUCTION OF LTCG

The government’s move to impose Long Term Capital Gains tax (LTCG) of 10% on over Rs. 1Lakh gains made from capital market investments and the decision to retain the Securities Transaction Tax (STT) will dampen the investor sentiments. While the tax will adversely affect serious investors who are funding the India Growth Story, it won’t have any impact on short-term traders. Instead of introducing LTCG in it’s current form, the government could have done better by changing the tenure of this tax or given the corresponding benefit by re-introducing 88E to take the deduction of STT.