Budget 2024: CA Explains The LTCG, STCG Tax Hike Math | How Capital Gains Tax Hike Will Impact You
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- Опубликовано: 7 сен 2024
- Budget 2024: One of the big shockers of the finance minister's union budget announcement was that long-term and short-term capital gains taxes were being raised - LTCG from 10% to 12.5, and STCG on specified assets from 15% - 20%. As per definition, any profit or gain that arises from the sale of a 'capital asset' is a capital gain. Additionally, the exemption limit for these gains has been set at ₹1.25 lakh per year. Additionally, indexation has been done away with. With all this complications, how will your investments now be taxed? Here's a roundup, with an explanation from Karan Batra, Founder, Chartered Club - watch!
#tax #taxation #budget
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Why are we being charged 12.5% in long-term capital gains tax? I believe the government should allow its citizens to have the opportunity to improve their financial situations. We have already paid taxes on our hard-earned money, and it seems unfair to have to pay such a high tax rate when investing in long-term mutual funds. I kindly request that this tax rate be revised to a more reasonable level.
What the benefit govt giving back to the tax payers?
In Europian countries they give free education and hospital expenses to the citizens for collecting taxes from them.
Here in India states like AP, govt is giving 4000rs for each person who crossed age 60. Even well settled people also get the money. This is where our tax money is going.
@@karthicc7298 I understand that , but we can't compare most of the population in India is still below the poverty line .
If they give like that physics deficit would skyrocket
@@karthicc7298who fed u that bullshit? Have u checkef their tax rates and population? I live in Europe so know it first hand.
@@pcaso i think there won't be any freebies like in india elsewhere. If your taxes are going as freebies then you will realize this issue.
Because the govt can and will take away your hard earned money! All these politicians are like this and will keep milking us middle-class till the time we don’t collapse all together!
Increased LTCG limit by 25 thousand, also.increaed tax by 2.5%
Janta ko gendu samaj ta hai yeh sarkar.
Now black money will increase more in real estate
Exactly. I was. In talks with a party to sell my property. Before budget the offer was 70 lakhs in white, 30 lakhs in Black for 1 crore property.
Now they are offering 60 lakhs in white 40 in black
😢😢😢
Exactly. 60/40.
What is fuck is modi thinking and doing but he doesn’t understand economics what is FM doing and thinking but she doesn’t know finance fundamentals what is opposition doing they dont care .... Modi losing goodwill and votes from middle class faster than Ayodhya
Yeh badhiya tha guru 🤣🤣🤣
Should have learned earlier and they allow all corruption
All our indirect and direct taxes paid by us is being used by government for their freebies and nothing in either form compensating for public. All basic provisions being made by government are again indirectly being compensated by public again. then what is happening to income tax paid by public. Politicians are enjoying with all free benefits with our money and they really not knowing the ground level issues of public. Age old exemptions, peanut rebates (which again taking back bcz of inflation and cost of living escalation etc). why is govt claiming as if the budget is for middle class people whereas nothing is given benefit to the public.
Should atleast give free healthcare services for in-patients who paid more taxes.
20 % on STCG is very high. BJP will lost the favour of short term traders. But favour the land lords in real estate, because mainly politicians do real estate business and earn chores of rupees.
Removal of indexation benefit is very harsh decision by government,will prove harsh for bjp in votes.... should consider roll back this decision.
As a salaried person I am really afraid of BJP gov and its budget for the next five years.
As salaried folks the savings made are saved after one has paid a high rate of direct tax. With the tax paid income the tax payer buys goods and services and has to pay a high rate of GST on all those goods and services. Now, the savings one makes on the investments which were made after paying taxes, are again subject to STCG and LTCG. This is a cruel triple whammy by the Government on normal salaried folks, the softest target they have.
Instead of all this, why not reduce the burden of direct taxes and adopt a proper GST regime on all goods and services? This way anyone who consumes anything at all, is paying tax and contributing to the country! Transaction Tax. That’s the best way forward.
After all, EVERYONE is a Consumer, but only less than 2% of the whole of India are part of the Salaried classes who are taxed inordinately!
It is about time that the GOI looks at the Middle Classes too in a favourable manner.
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NVDA एक बेहतरीन निवेश विकल्प है!
Extremely bad for markets and investors in the long term if government keeps increasing Capital Gains Tax.
Punishment for not giving the majority
Should have whatever seats were given to this Baniya Party. Not even a single seat should be with them.
That's why people move to other countries to earn. Here they'll not allow you to earn.
Nonsense budget. As usual salaried class is punished
What the f you're smoking, dude ? How tf salaried class punished ? 90% are in exemption limit with 75000 SD up to 7 lac limit no tax. Only high paid employees will pay the tax.
@@roxymax8917 you think 7 lakhs is enough for a family nowadays? 😂
@7 lakhs is what a fresher expects and in just 1-2 years of experience if you don't pay atleast 10 lakhs they quit the job.....maybe what your saying is applicable to some industies.roxymax8917
Worst budget worst fm
Blame godi
Indexation benefits is the main for LTCG. Real estate and gold is good for investors for future because lot of loopholes available 😂
like what?
What the benefit govt giving back to the tax payers?
In Europian countries they give free education and hospital expenses to the citizens for collecting taxes from them.
Here in India states like AP, govt is giving 4000rs for each person who crossed age 60. Even well settled people also get the money. This is where our tax money is going.
European countries also have 50-60% taxes. That's how they can afford free education and Healthcare
Side effects of whatsapp university or half baked knowledge
And what is the tax base : 50% of the population,, and what is the tax base in India : 4% of the population. Free education and hospital expenses are also available in India also. How much did you pay for the COVID injections? In MP, the government spends money on cow protection, banning consumption of meat, food terrorism, and the promotion of Brahmavad.
That full baked person can't know how much i have spend to my family for the hospital expenses. Can only comment by sitting in abroad. First understand the pain what we are facing even after paying the taxes in India.
We were not supposed to get benefits but don’t deserve the loot by corrupt politicians
BJP will realize its mistake after next elections. Even core/committed BJP voters are angry with changes in capital gains tax
Need a party singularly for Middle class and tax payers now
More people will leave india
That’s what this government wants. Go to other countries and send money to India from there.
What is thw effwctive date of ltcg ? I sold a property on first wrek of April so will therr be tax as per new rule or old rule ?
BJP needs to go
Thank you sir for the easy n crisp explaination..
Worst FM ever
It’s a lunatic budget. Everything is wrong. Our taxes are given as freebies. Whatever we save today after paying taxes is again taxed. Mr. Modi Jee, look at this calculation and ask FM to introspect the details and then decide. What you will gain by spending freebies on providing houses-Nil. But our infrastructure will suffer.
And big picture of Modiji
AS PER THE NEW LAW, INDEXATION BENEFITS AVAILABLE FOR PROPERTY BOUGHT BEFORE 2001. DOES THAT MEAN YOU GET THE INDEXATON BENEFIT AS WELL AS THE LOWER TAX RATE, WHICH IS 12.5%.FOR PROPERTIES PURCHASED/INHERITED PRIOR TO 2001.
What would be the LTCG on Debt Mutual funds acquired before 1 April 2023 and sold before Budget 2024 but in the month of April 2024? Will the indexation benefit apply there or will be taxed as per the applicable tax slab?
Indexatiom was already abolished on debt mf
Senior citizens who were doing SWP now have to pay 20% STCG vs 15% previously.
It's just such a back breaking exercise for them 😢😢
Who does SWP for less than 1 year of holding assets (stocks/MF units)? You are most likely holding those assets for decades. It's always been FIFO, so LTCG rate will be applied.
@@tamal we received 1 crore after selling our plot. My father invested it in HDFC balanced advantage fund and initiated an Swp of 50k/ month. Wouldn't he be taxed 20%
@@vineeshp6 Putting 1cr in MF is huge red flag when market is at all time high. 75L in SCSS, FDs, gsec, etc. would have been more secure where the interest would have been taxed at slab rate. Rest could stay in MF for 5+ years and grow.
Sir, I bought an apartment outskirts of Chennai at a cost Rs.75 Lacs in 2010. Today a similar size apartment in our own complex (420 Apartments in all) is being sold at Rs.55 Lacs (yes at a deep discount). Where do we stand wrt recent budget? My understanding is Capital Loss on sale is Rs.20 L as per new budget which could have been Rs.50 L with indexation benefit. Is that right?
Dear Finance Minister,
Listen to Middle class.
Will boost market.
*Life & Health insurance (each 25lk/family) should provide as intensives to Taxpayers.
*Should public seen as three sections
exemption must 10lk
Low tax (10%): 10lk-20lk
Medium tax (20%): 20lk-50lk
High tax (30%): above 50lk
*LT&ST CG:
10% low tax
15% medium tax
20% high tax.
Is the new long-term capital gains (LTCG) tax rate for US equity investments 12.5%, and is the ₹1.25 lakh exemption also applicable to LTCG from US equities?
Horrific new change on real estate - ltcg
Its straight robbery by government
Many person have land holdings from 25-30 years which used to get indexed
How can tha person calculate if he has bought land - at around
1 lakh - 35 years back
And is selling for 1.6 crores
Its horrific as he will be paying tax on the entire amount
& has to reinvest whole amount back into real estate
As he could have used the indexed cost value earlier - into his personal account !!
Indexation will be available for property bought before 2001 but post 2001 it has been removed
Government & Finance Ministry should listen to citizens views....you should not be Inflexible...all our calculations show removal of indexation benefits is Unfavorable to us....dont make it effective immly, if you want to change give us window ( you keep 2 income tax regimes, then why not give time for this case )....we are very much concerned the way this is getting pushed
Ltcg reduced to 12.5 percent is it effictive from April 1st 24 or 23rd july when thevbudget is presened please clarify
very simply explained. thank you
International mutual funds are taxed at 12.5% LTCG and not like debt funds anymore. 1.25 lakh capital gain exemption will offset some of the tax burden.
❤Every Analyst is telling daily that Market Valuation are very expensive... Waiting for the Correction ❤That's why Indian Market is moving higher and higher ❤
00:02 Capital gains tax rates have increased in Budget 2024
01:06 LTCG tax rates have changed for domestic and foreign stocks.
02:00 Government standardizing tax rates for different asset classes
03:01 Capital gains tax calculation with and without indexation
04:08 Capital gains tax impact on real estate prices
05:01 Tax implications of buybacks for shareholders
05:49 Tax Arbitrage Eliminated in Buyback Process
06:39 Budget 2024 brings surprising changes in tax liabilities.
Can u explain on how to save tax on the real estate gains with an example?
Indexation is still available on properties before 2001
Worst worst finance minister...just get out of here
I had purchased a site in 1999 and kept it so far for medical education of my daughter next year. The property value has gone up by almost 100 times in over 25 years. If I have to pay fully on capital gains, I will loose a lot of money in comparison to earlier method of indexation. At the same time government has not given anything for salaryless retired people like me. The move by government will lead to black money.
Sir, this new method is greatly benefiting you. Assuming initial purchase price as x, its price with indexation benefit will be 4x. You will have to pay (100x - 4x) * 0.2 = 19.2x as tax in earlier method. With new method you have to pay only (100x - x) * 0.125 = 12.375x. If you add surcharge and cess tax, you are gaining even more.
@@animeshpandey6822 he just told u value is 100x and its compounded 4 or 5% for 25 yrs. its not the % that counts, but the amount being robbed by the govt. he's not putting into another real estate asset to gift to his daughter. what he wouldve spent on the kids education is now going as tax, rest of the money wont be enough to buy similar land anywhere.
@@ytadltspv I am comparing tax between older scheme and new scheme. He needs to pay less tax in new scheme compared to old scheme.
@@animeshpandey6822 pls see all the debates for a 25 yr investment, he has to be paying more tax due to loss of indexation - only recent purchases dont seem to be affected much. anywy , his accountant and lawyer should advise him based on actual numbers. fine print of 2001 onw, has to be worked out. if he saves money , good for him.
By foreign equity do we mean the ones listed by Indian Amc’s only ?
how LTCG tax on property tax is beneficial on the contrary it is more taxable ?
The problem with stock market is that each and everyone is investing in and obviously government will take some portion of the cake 😂😂😂
Jinsne Jisne BJP ko vote diya hai chalo apni pant utaro 🤣🤣🤣
The removal of indexation is a huge turndown for the entire budget. The tax difference between the earlier cases and proposed case is enormous.
The government clearly wants more tax if you have capital asset, and an excuse of making the calculations easy is utter nonsense. Everyone is capable of calculating indexation.
New scheme is being forcefully shoved upon us. Either take the new route and get no deductions with negligibly reduced slab rates or continue old scheme with no change. It’s like they are saying we will give you coal but you give us gold.
I don’t see any benefit for common man. Neither for salaried class, the new scheme benefits are a scam.
Tax is not a problem. Making it unform is also good, not a problem. But instead of allowing both options of the with indexation and without and reallowing indexation in equity and also making ìt in parity, government made changes to all to be same as equity but without indexation..
Clearly government is not considering the indexation or basically cost of inflation. Which was main problem why BJP kost seats. So that was surprising.
I would have loved to see one more category of 10 or 20 years plus and tax at 5% or 10% without indexation.
They should have kept the same rate of 10% and should have kept stcg at 15% but making it norm for debt , gold, property and all capital assets (like property, gold, equity and should have included FD into it and only leaving savings account balance) for STCG of 15% instead of adding it to income.
I think finance minister has tried to save stock market from falling, by discouraging selling due to higher STCG LTCG and discouraging property capital gains . So next year we may see different or else BJP will be rooted from power.
I would have loved if they relook he corporate capital gains .
Where are all the profits made by all PSUs going?
This budget has killed the middle class tax payers . Perhaps in the world India may be the first country who do not considered the inflation for profit consideration . The value of Rs 100 in 1991 remains the same as Rs 100 in year 2024 . What foolish budget . Many middle class sell their very old property and move to small city or Village and the profit of property selling is used as livelihood for their life time . Also property are supposed to be very long term investment may be more than 15 years . But this BJP government has killed all those middle class tax payers . This BJP government is acting only for rich class , Industry Owners and for Politicians as these people are always master in how to save tax or avoid tax or to manipulate law due to their high power . The middle class tax payers should understand the dark side of BJP government. Please be away from BJP Politicians. They only talk sweet things through which you will get finished that you yourself will not know .
Is ltcg less than one lakh still non taxable .?
This new rule is effective from which date
Awsm help
You can claim rebate of 25000 under 87a on STCG
Tin guna lagaan 😢
Two things -
1. Crazy blockbuster would mean something completely different.
2. If you're gonna use a whiteboard, find someone with better handwriting.
Black money transfer Wil be increasing now definitely
This is most unjust.
what about STCG limit for taxation? 1 lakh or 1.25 lakh?
No . Even 1rupee profit you have to pay STCG
@@murugesanthirumalaisamy5613 kabhi zindegi me ITR file kiya v hain ? There is rebate under 87a
Holding property for long time is of no use now... May end up in loss
Now real estate price will increase so much you cant. Imagine because now people by with more cash before the government increase the price due to indexation now no increase so black money will more use
These are all biased calculations. Very cleverly these persons have avoided the tax benefit that a seller would enjoy if the selling price is 3 or 4 times of purchase price under new taxation. New taxation is definitely beneficial. Don't mislead people
Send them packing
FM ne middle class ke ghar me khuskar mara....
20 percent of 1 cr be 20Lakh ryt
Why is he writing like he doesn't know how to write?
Stupid budget
could have gotten someone with better handwriting
i think mr borate is right handed & forcingly writing with left hand😆
#modihatao #khudkobachao
If the property is bought before 2001 , indexation still applies, FM has clarified
It's ridiculous to say that the ltcg has increased. If you hold a property for a long time you end up paying less ltcg. I am telling from my experience.
It is obvious from your gesture and pattern of writing that you are not left-handed. Do some homework at first.
Bjp gov is gone
LTCG tax SHOULD BE INCREASED 25% and STCG TAX SHOULD BE INCREASED 40%.
मोदी मोदी अच्छा किया आपने LTCG ऑर बढाना चाहिए था 25 % करना चाहिए था तब मजा आता.लोग काम कम ऑर शेअर मार्केट पे ज्यादा ध्यान देते है.इतना टॅक्स बढाव की शेअर मार्केट से आऊट होना चाहिए.
Meanwhile the same middle class will buy a new iPhone after this budget
It’s with their own money so what?
😢Taxes are like USA AND UK....But service is like Somalia in India 😢😢
Aur do vote हिंदुत्व ke naam par
Horrific new change on real estate - ltcg
Its straight robbery by government
Many person have land holdings from 25-30 years which used to get indexed
How can tha person calculate if he has bought land - at around
1 lakh - 35 years back
And is selling for 1.6 crores
Its horrific as he will be paying tax on the entire amount
& has to reinvest whole amount back into real estate
As he could have used the indexed cost value earlier - into his personal account !!