New Income Tax Rules from 1st April 2022 for Surcharge on LTCG. details here

According to tax and investment experts, this move of unlisted assets will reduce Income tax Burden for investors in bonds, manufacturing, startups and other types of unlisted assets.

Speaking on new income tax rules for surcharge on LTCG in FY23; Taxbuddy.com founder Sujit Bangar said, “Currently, there is a 15 per cent limit on surcharge on long-term capital gains on sale of listed equities or mutual funds. With effect from April 1, 2022, this limit will be increased for a longer period. Capital gains on all assets.”

Elaborating on the benefits announced in the Budget 2022; Kartik Jhaveri, Director, Wealth, Transcend Consultants said, “After the extension of this income tax benefit, the surcharge on LTCG tax applicable on immovable property properties, physical gold, debentures, debt funds etc., where LTCG is applicable, is now capped at 15 Percentage. Hence, from this financial year, there will be no more than 15 per cent surcharge on any asset where LTCG is levied. Earlier, it was applicable to listed equity sales and equity mutual funds.” Jhaveri further said that the extension of this benefit will reduce the tax burden for investors in startups, manufacturing, bonds and other types of unlisted assets.

Finance Minister Nirmala Sitharaman had proposed this income tax relief to a taxpayer in Budget 2022, “Long-term capital gains on listed equity shares, units etc. are liable to a maximum surcharge of 15 per cent, while other long-term capital gains are subject to graded surcharge Which goes up to 37 per cent. I propose to cap the surcharge on long-term capital gains arising on transfer of any kind of asset at 15 per cent.”