STT &new code
This refers to “ For Sensible capital gains taxation” appeared ( ET august 19,2009). Proposals in the new direct taxes code are no doubt an improvement over the present taxation policy. But the removal of Securities Transaction Tax (STT) and reintroduction of long term capital gains will prove to be very costly to the exchequer and the revenue loss will be substantial.. Volatility seen in capital market can be contained with suitable modification of STT levies without, however. bringing down either the volume of transactions and revenue collections .
Long term capital gains on the contrary is dependent to a great extent on the declaration of gains and is also subject to adjustment of capital losses if any and there is scope for manipulation. STT needs to be improved upon for greater acceptance and strengthening the capital market.
This appeared in Economic times, 21/08/09.
Dr.T.V.Gopalakrishnan
1 comment:
Good suggestion.But, even for short term capital gains arising from sharemarket transactions, I feel that there should be some exemption limits say Rs 50000/- (annual).
Lingaiah
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