In order to increase foreign investment in this crisis of Corona, the Parliamentary Committee has given new suggestions regarding LTCG-Long Term Capital Gains.
Mumbai. The Parliamentary Committee has issued a recommendation to increase investment in startups. It says that LTCG-Long Term Capital Gains tax should be abolished for two years. Doing so will help increase investment in this corona crisis. Let us tell you that to understand long term capital gains tax, you have to understand long term capital gains. Actually, when you make a profit by selling any movable and immovable property, then that profit is called capital gains. If you sell the property after a certain period, then it is called long term capital gains. For long-term capital gains, these fixed periods vary.
Actually, long term is fixed in terms of property. For example, if the shares are sold after one year, the profits will be long term capital gains, while the bonds are eligible for long term capital gains if sold after three years.
For a property this period can be three years, for a property, two years. Even one year for a property. In the case of any property, we will consider long term capital Gain, who knows this first.
Who is called a startup- In general terms, a startup would mean starting a new company. Such companies are started by young businessmen themselves or with two to three people. The starting person is the starting capital in the company and also runs the company. This company works on relatively new products or services, services that are not available in the market at that time.
If, as a government definition, a startup is a company that has been registered in India within the last 5 years and its turnover has not exceeded 25 crores in any financial year. This company deals with innovation, development, deployment, new products.