Government raises capital gains tax on equity funds, which is tax googly.

The administration hiked the long-term capital gains tax on equity funds to 12.5% while increasing the short-term capital gains tax to 20%.

The government has suggested changing the capital gains taxes on direct stocks and equity ETFs.

The long-term capital gains (LTCG) tax on equity funds would rise from 10% to 12.5%, while the short-term capital gains (STCG) tax on equity funds would increase from 15% to 20%. The LTCG exemption cap was raised by the government from Rs. 1 lakh to Rs. 1.25 lakh annually. In other words, earnings over Rs. 1.25 lakh annually are subject to LTCG.

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