Capital gains tax on private equity loweredMay 7th, 2012 - 8:18 pm ICT by IANS
New Delhi, May 7 (IANS) The central government Monday announced the lowering of capital gains tax on private equity investments to 10 percent from the existing 20 percent.
“Currently, long term capital gains arising from the sale of unlisted securities in the case of Foreign Institutional Investors is taxed at the rate of 10 percent while other non-resident investors, including private equity investors are taxed at the rate of 20 percent,” Union Finance Minister Pranab Mukherjee said.
“In order to give parity to such investors, I propose to reduce the rate in their case from 20 percent to 10 percent on the same lines as applicable to Foreign Institutional Investors (FIIs),” Mukherjee said while initiating the debate on the Finance Bill for 2012-13 in the Lok Sabha.
In order to bring more depth in the capital markets through the listing of companies, the finance minister proposed to extend the benefit of tax exemption on long term capital gains to the sale of unlisted securities in an initial public offer (IPO).
“For this purpose, I propose to provide the levy of Securities Transaction Tax (STT) at the rate of 0.2 percent on such sale of unlisted securities,” Mukherjee said.
- New tax saving scheme for equity investment, STT cut proposed - Mar 16, 2012
- Panel proposes hiking income tax exemption limit to Rs.3 lakh - Mar 09, 2012
- P-notes holders will not be taxed: Mukherjee - Mar 30, 2012
- 'Qualified foreign investors can directly invest in equity markets' - Jan 01, 2012
- Budget fails to impress markets, Sensex tanks 210 points (Roundup) - Mar 16, 2012
- India defers GAAR by a year (Lead) - May 07, 2012
- Prominent highlights of 2012-13 budget - Mar 16, 2012
- India raises overseas investment limit in government bonds (Roundup) - Jun 25, 2012
- Foreign Direct Investment in India to be more user friendly - Feb 28, 2011
- India raises overseas investment limit in government, corporate bonds (Lead) - Jun 25, 2012
- Defer GAAR by three years, suggests Shome Committee (Lead) - Sep 01, 2012
- Year of steep losses, volatility for Indian equities (2011 in retrospect) - Dec 31, 2011
- Levy on unbranded jewellery to be withdrawn: Pranab - May 07, 2012
- India clears 20 FDI proposals worth $373 million - Jan 10, 2012
- Small investors should not directly trade in equities: SEBI - May 19, 2012
Tags: capital gains tax, capital markets, central government, finance bill, foreign institutional investors, initial public offer, levy, Lok Sabha, long term capital, long term capital gains, New Delhi, parity, pranab mukherjee, private equity investments, private equity investors, stt, tax exemption, transaction tax, union finance minister, unlisted securities