No Proposal Before Govt On Capital Gains Tax, Clarifies Income-Tax Dept

On Tuesday, the Indian Income Tax Department announced that the government has not yet received any proposals addressing the capital gains tax. The Income Tax Department emphasised via a tweet that there isn't a capital gains tax plan like that before the government.

A previous story in the day's media stated that India was preparing to alter its direct tax code, including adjustments to capital gains taxes. Following the revelation, the benchmark Sensex index for the equities market fell 331 during intraday trading. After recouping some of its losses, it concluded at 59,727, 183.74 points lower.

No final decisions have been taken, but a panel may be created to build on ideas given to the Finance Ministry in 2019 with an eye towards implementation in 2024,

According to the story, the government plans to introduce a new direct taxation policy in order to replace India's complex tax code with a less complicated one in order to entice businesses wishing to move their operations from China amid rising tensions between Washington and Beijing. While the centre had acknowledged the necessity for capital gain tax reform, finance ministry officials are currently refusing to have such a dialogue.