No move to scrap LTCG tax on equity, MFs
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New Delhi: The government has garnered Rs98,681 crore from long-term capital gains (LTCG) tax on listed equities in 2022-23, a 15 per cent growth over the previous year, Parliament was informed on Tuesday. Minister of State (MoS) for Finance Pankaj Chaudhary gave details of collections from LTCG tax between fiscal 2018-19 and 2022-23 in the Rajya Sabha. To a question on whether the government is contemplating to abolish the LTCG tax on equities/mutual funds during 2024-25, Chaudhary said: “There is no such proposal”.
The long-term capital gains on equities and units of equity-oriented mutual funds (MFs) were brought in from April 2018. Such gains were taxed at 10 per cent, with gains of up to Rs1 lakh annually being exempted. As per the details shared with the Parliament, Rs98,681.34 crore was collected from LTCG in 2022-23, up 15 per cent over Rs86,075.49 crore collected in 2021-22 fiscal. The collection was about Rs38,589 crore in 2020-21, Rs26,008 crore in 2019-20 and Rs29,220 crore in 2018-19.
The Budget for 2024-25, announced on July 23, hiked LTCG tax on equities and equity oriented mutual funds to 12.5 per cent, from 10 per cent.
