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Difference between revisions of "Long Term Capital Gains"

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(Created page with "==In The News== *March 1, 2018: Business Standard: New LTCG tax: ESOPs may not get 'grandfathering' ==Related Lessons== *Tax on Dividend Income *Tax on Bonds *Tax on...")
 
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==In The News==
 
==In The News==
 
*March 1, 2018: Business Standard: New LTCG tax: ESOPs may not get 'grandfathering'
 
*March 1, 2018: Business Standard: New LTCG tax: ESOPs may not get 'grandfathering'
 +
==LTCG from FY 2018-19==
 +
In the Union Budget, it is proposed that Long Term Capital Gains of 10% on Equities is introduced.
 +
 +
There is a grandfathering clause attanched with 31 January 2018 as the referance date.
 +
 +
Many panic investors are now worried that they will get less returns and contemplating to switch from one product to another so as to move away from the tax.
 +
 +
For example, some investors are thinking if they can move away from Mutual funds to ULIPs.
 +
 +
This is a very bad idea.
 +
 +
The two products are different and it is foolish to sacrifice the growth prospects of one product and going in for the other solely for the sake of saving tax.
 +
 +
10% LTCG after grandfathering above Rs 1 Lakh is peanuts that we pay as tax.
 +
 +
So, investors should not worry about taxation and focus on getting the most out of your investment.
 +
 +
Also, investors need to understand that they really do not have any alternative to long term wealth creation.
 +
 +
{{GAS}}
 +
 
==Related Lessons==
 
==Related Lessons==
 
*[[Tax on Dividend Income]]
 
*[[Tax on Dividend Income]]

Revision as of 00:40, 7 April 2018

In The News

  • March 1, 2018: Business Standard: New LTCG tax: ESOPs may not get 'grandfathering'

LTCG from FY 2018-19

In the Union Budget, it is proposed that Long Term Capital Gains of 10% on Equities is introduced.

There is a grandfathering clause attanched with 31 January 2018 as the referance date.

Many panic investors are now worried that they will get less returns and contemplating to switch from one product to another so as to move away from the tax.

For example, some investors are thinking if they can move away from Mutual funds to ULIPs.

This is a very bad idea.

The two products are different and it is foolish to sacrifice the growth prospects of one product and going in for the other solely for the sake of saving tax.

10% LTCG after grandfathering above Rs 1 Lakh is peanuts that we pay as tax.

So, investors should not worry about taxation and focus on getting the most out of your investment.

Also, investors need to understand that they really do not have any alternative to long term wealth creation.

Related Lessons

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