I-T dept says changes in capital gains tax to promote ease of compliance
The income tax department on Wednesday issued a FAQ on changes in the capital gains tax saying the idea behind it was to simplify the tax structure and promote ease of compliance.
The holding period for various asset classes for the purpose of short- and long-term capital gains tax has been rationalised.
The holding period of all listed assets will be now one year for the purpose of long-term capital gains tax (LTCG). Therefore, for listed units of business trusts (ReITs, InVITs) holding period is reduced from 36 months to 12 months.
The holding period of gold, unlisted securities (other than unlisted shares) is also reduced from 36 months to 24 months for calculating LTCG. The holding period of immovable property and unlisted shares remains the same as earlier i.e. 24 months.
"Simplification of any tax structure has benefits of ease of compliance viz computation, filing, maintenance of records. This also removes the differential rates for various classes of assets," the income tax