Capital gains taxation restructured: adjusted gains and indexation rules replace prior exemptions, altering treatment for investors and FIIs.
The paper treats income from investment asset transfers as capital gains included in total income and taxed at applicable rates, removes usual short/long term distinctions except for one year thresholds for certain treatments, and sets computation rules (consideration minus cost, improvement and transfer expenses with indexation where held beyond one year). Listed equity and equity fund units held over one year receive a specified deduction from gains without indexation and are taxed at marginal rates; other long held assets benefit from a shifted base date with indexation. FIIs' securities income is deemed capital gains, exempt from TDS but subject to advance tax, and STT is to be recalibrated or abolished.