Today on the big day of the interim budget LTCG tax was proposed by finance minister Piyush Goyal. It said February 1 onwards, if long-term stocks or equity mutual funds are used for sale, then it implies to levy tax on gains accrued. This is since the market closing on January 31. If the earnings cross the limit of Rs 1 lakh of such gains, then 10.04% of that (including cess) has to be paid as tax.
In context to the above, a senior official at a private sector mutual fund said, "There is a view that the government may rollback LTCG tax since the amount collected is not significant,”
In the last FY budget, LTCG tax on equity was brought by the finance minister Arun Jaitley explaining tax will be attracted to any long term capital gains of over Rs 1 lakh in a financial year at a flat rate of 10 percent.