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No more bigotry between long and short term capital gains

The government has proposed to do away with the distinction between short-term and long-term capital gains in the newly proposed direct tax code. What would be the impact of this change on SIP calculation for long-term investors?
-    Satvik Kumar

Taxing long-term capital gains will mean that when you plan SIP for your long-term goals, you will have to take an increased sum into consideration. For example, if the money required is Rs 1 lakh and the tax rate applicable is 20 per cent, then you will need to accumulate Rs 1.25 lakh. Accordingly, the regular contribution amount will also increase.

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