The increase in the exemption limit for Long Term Capital Gains tax from Rs 1 lakh to Rs 1.25 lakhs has been well-received. Although changes in rates for LTCG and STCG were unexpected, it is believed that the markets will adjust accordingly. Additionally, there is satisfaction that AMFI's request to change the definition of ‘Specified Mutual Funds’ under Section 50AA has been granted, leading to a more rationalized taxation for the affected funds.
