Ahead of the Union Budget for FY24, Revenue Secretary Tarun Bajaj told Business Today in an exclusive interview that there is a need to simplify the capital gains tax regime.
“It needs to be understood that many people do not pay their taxes. On the capital gains tax front, we have different asset classes and the indices are also subjective. The capital gains tax regime needs to be simplified. The product Should sell on their own strength and not on tax arbitrage. If these reforms are done then things will become more stable and orderly,” Bajaj said on a possible announcement that could impact equity markets in the near term.
Bajaj said that he wants taxpayers to participate in the stock market for both short term and long term.
“People should invest because the product is good and arbitrage should not be the only issue,” Bajaj said.
Speaking further on the changes made to the capital gains tax regime, Bajaj said: “I made a statement after the last budget, in the hope that I would get some suggestions on what the government should do. Have taken small steps. Look at the relationship, such as the single income tax form.”
Bajaj also spoke about the new tax regime for the middle class.
“There are some people who are opting for the new regime. A large number of people in India show income less than Rs 7 lakh per annum, which is close to 80% of the taxpayer base. A large number of people can move to the new regime if Some changes have been made. May be in future, the government may keep a single regime instead of both,” the finance ministry official said.
Bajaj also agreed that some reforms may be required on the personal income tax front, a demand made by industry bodies during pre-budget consultations with Finance Minister Nirmala Sitharaman to increase spending and consequently growth of industries. promotes.
“Perhaps some reforms are needed on personal income tax also. We need to tinker with some provisions that may give relief to some and not others. The process of filing income tax needs to be simplified. Address No exactly what CII (an industry body) means on the relief but I agree that we should expand the tax base and not increase it,” Bajaj said.
Read also: GOM agrees to tax online gaming on par with casinos and horse racing; 28% GST may apply
Read also: New roadmap for capital gains taxation likely in Budget 2023-24
