Last Updated on February 1, 2022 at 7:09 pm
Budget 2022 has not increased Equity LTCG Tax from 10% to 15%! The mention of 15% was a reference to the capping of the surcharge on LTCG from other assets. An explanation.
How does surcharge work: If your income is Rs. 100 and the tax is Rs. 30 and the surcharge applicable is 10%, then you need to pay a total tax of Rs. 30 + (10% of Rs. 30) = Rs. 30 + Rs. 3.
Currently, the surcharge on equity LTCG (shares and MFs) is:
- 10% where total income exceeds Rs. 50 lakhs but does not exceed Rs. 1 crore.
- 15% where total income exceeds Rs. 1 crore
In the case of LTCG from other assets (eg. immovable property), the existing surcharge is:
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- 10% where total income exceeds Rs. 50 lakhs but does not exceed Rs. 1 crore
- 15% where total income exceeds Rs. 1 crore but does not exceed Rs. 2 crores;
- 25% where total income exceeds Rs. 2 crore but does not exceed Rs. 5 crores;
- 37% on base tax where specified income exceeds Rs. 5 crores;
From 1st April 2022, the surcharge on all types of LTCG will be
- 10% where total income exceeds Rs. 50 lakhs but does not exceed Rs. 1 crore.
- 15% where total income exceeds Rs. 1 crore
There is no change in the Equity LTCG tax rules!!