Cannot become Viksit Bharat without taxing capital gains appropriately: Fin Secy Somanathan

- India cannot achieve the status of Viksit Bharat without appropriately taxing capital gains, according to Finance Secretary TV Somanathan. - Somanathan emphasized that earners of capital gains are not poor and should be taxed at a decent rate. - The recent hike in long-term capital gains tax (LTCG) to 12.5% from 10% is part of a move to simplify and make the capital tax regime more uniform. - Somanathan defended the tax hike by stating that India's rate of capital tax on long-term listed equities is low by global standards. - The Union Budget for 2024-25 also increased the short-term capital gains tax to 20% on specified financial assets. Source: Moneycontrol