New Delhi: The government may consider rationalizing the long-term capital gains (LTCG) tax structure in the upcoming Union Budget for 2023-24.
As of now, LTCG is taxed at 10 per cent on shares held for more than a year.
This tax was discontinued in 2005, but was re-introduced in 2018 in the Union Budget of that financial year.
Sources aware of the developments said the finance ministry is looking at ensuring parity between similar asset classes by rationalizing the LTCG tax structure and even revising the base year for computing inflation-adjusted capital gains.
Gains from sale of immovable property and unlisted shares which are held for more than two years attract 20 per cent LTCG.
Sources said the government may consider rationalization of tax rates and holding period for calculation of LTCG in the upcoming budget.