2024-07-23 16:00:01
New Delhi: The share market is booming these days. The Bombay Stock Exchange (BSE) Sensex index is above 80,000. In cities, every third person is investing in the share market these days. A report has come that about 20 percent of the country’s population is investing in the share market directly or in products related to the share market. All of them are earning good income. Perhaps this is the reason why the government has increased the tax rate on income from the share market in this budget.
How has the tax increased
Capital Gain Tax is levied on the income from the stock market. This capital gain tax is divided into two parts. Short Term Capital Gain Tax and Long Term Capital Gain Tax. If a person invests in the stock market or mutual fund and makes a profit within a year, then this income is called Short Term Capital Gain (STCG). But if the same person maintains his investment for a year, then it is considered long term. Therefore, Long Term Capital Gain (LTCG) tax is levied on it. Union Finance Minister Nirmala Sitharaman on Tuesday changed the capital gains tax system to some extent by changing the short term and long term capital gain tax rates.
What has changed
Earlier, long term capital gains were taxed at the rate of 10%. Now it has been increased to 12.5%. Similarly, short term capital gains were taxed at the rate of 15%. Now it has been increased to 20%.
People are earning a lot from the stock market
At this time, people are earning a lot from the stock market. Those who do not have the knowledge of earning by investing directly in the stock market are investing through mutual funds. That is why during June 2024, people invested Rs 40,608.19 crore in equity mutual funds. This is 17 percent more than a month ago. This figure is from the Association of Mutual Funds of India (AMFI). During May 2023, a total investment of Rs 34,670.9 crore was made in equity mutual funds.