The removal of indexation and the introduction of a lower capital gains tax rate aimed at simplification, as stated by Revenue Secretary Sanjay Malhotra. He noted the government's efforts to simplify the direct tax laws and rationalize customs duty slabs. While the new budget eliminates Angel tax, past cases remain under existing law. Despite concerns about the removal of indexation benefits for property, Malhotra emphasized the overall benefits and minor rate increases. Additionally, the government seeks to reduce disputes and litigation with fewer customs duty rates, aiming for 3-5 categories.
