CURRENT AFFAIRS

Detailed explanation-1: -The long-term capital gains (LTCG) on the sale of listed equity shares have been made taxable from 01 April 2018. In the case of equity investing, long-term means a holding period of more than one year from the date of purchase. Long-term capital gains are the profits earned on the sale of listed equity shares.

Detailed explanation-2: -Any capital asset held by the taxpayer for a period of more than 36 months immediately preceding the date of its transfer will be treated as long-term capital asset.

Detailed explanation-3: -The Union Budget 2022 offers relief to individual taxpayers by capping surcharge to 15% on long-term capital gains. The type of asset and the amount of long-term capital gain does not matter. Before this amendment, the cap of 15% was only applicable on LTCG on equity-oriented mutual funds and listed equity shares.

Detailed explanation-4: -The exemption limit is Rs. 3, 00, 000 for resident individual of the age of 60 years or above but below 80 years. The exemption limit is Rs. 2, 50, 000 for resident individual of the age below 60 years.

Detailed explanation-5: -There are certain exceptions where LTCG exemption is applicable even if STT shown in the statement is zero. If equity shares and equity mutual funds (MFs) are sold after being held for one year or more, then long-term capital gains (LTCG) up to Rs 1 lakh are exempted from income tax in a financial year.