Picture : Twitter / ANI
Under criticism for not abolishing the long-term capital gains (LTCG) tax, Finance Minister Nirmala Sitharaman has said her ministry will wait for one “normal year” before taking a call on the cess.
On the dividend distribution tax (DDT), she clarified that the liability was shifted to the investor’s applicable rate from the company to reduce middle-class investors’ outgoes.
Stock market benchmark indices had tanked by over 2.5 per cent on the budget day last Saturday. Experts opined that investors were peeved at the absence of any action on LTCG and the shift on DDT.
Speaking to opinion makers and analysts in the financial capital, Sitharaman said the LTCG was introduced in 2018 and the volatilities in the markets have ensured that she cannot make a reasonable assessment on it.
“Much before let us say I have burnt my fingers, I am told withdraw it. The reason why we didn’t go that far on LTCG is because let us have an assessment at least one-year of a normal response to a tax. Lets us hope this year, after which we would take up considered view,” she said.
