Government's Boost in Long-Term Capital Gains Tax Collections

The government collected Rs 98,681 crore in long-term capital gains tax on listed equities in 2022-23, showing a 15% growth over the previous year. Minister of State for Finance Pankaj Chaudhary provided this data in Parliament, detailing collections from fiscal 2018-19 to 2022-23. The LTCG tax was brought in from April 2018.

In a significant financial update, the government has amassed Rs 98,681 crore from long-term capital gains (LTCG) tax on listed equities for the fiscal year 2022-23. This represents a 15 per cent increase over the previous year's figure, according to information shared in Parliament on Tuesday.

Minister of State for Finance Pankaj Chaudhary outlined the LTCG tax collections from fiscal years 2018-19 to 2022-23 in the Rajya Sabha. Notably, LTCG tax on equities and equity-oriented mutual funds was introduced in April 2018, with a 10 per cent tax rate, exempting gains up to Rs 1 lakh annually.

For the fiscal year 2022-23, the LTCG collection stood at Rs 98,681 crore, marking a substantial rise from the Rs 86,075 crore collected in 2021-22. Despite inquiries about the potential abolition of the LTCG tax on equities and mutual funds in 2024-25, Chaudhary clarified that there are no such plans.