The government hopes to double its revenue from long term capital gains (LTCG) tax on stocks to ₹40,000 crore in 2019-20 as more share transactions come in its fold with the waning of the grandfathering effect, an official said.
Defending the reintroduction of the tax, after a gap of 14 years, Finance Secretary Hasmukh Adhia said if the salaried class pays up to 30% income tax after toiling, it is only fair those who make huge returns on stock market investment are brought into the tax net. In Budget 2018-19, Finance Minister Arun Jaitley imposed a 10% tax on LTCG made in the share market to curb tax evasion.
