Despite India emerging as a bright spot amid recession in the global economy, its growth has been blemished by inequality as the top 5 per cent own more wealth than the poorest 60 per cent. Reports suggested that in an effort to bridge the gap, the Indian government was mulling a higher capital gains tax for india's top earners.
But now the Income Tax department has clarified that there is no such proposal with the government and dismissed the report by Bloomberg.
What did the report say?
The report had suggested that gains from assets such as equity funds and stocks, will attract more taxes if the Modi government returns to power in 2024.
It had also claimed that an overhaul would be conducted to simplify the complicated taxation system, for attracting firms that want to shift operations out of China.
No discussions on higher taxes for high income
But the Income Tax Department has laid speculation about any such move to a rest, and this means that while income will attract as much as 30 per cent in tax, capitals gains will be taxed at a lower rate.
So far the government's move to increase the minimum income to attract taxes in the last full budget before the polls has been received positively.
But a move to tax top earners more for gains on assets to tackle inequality could've worked in its favour.
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