Suggestions regarding rationalisation of STT , LTCG and STCG

Indian government is thinking about rationalising different types of taxes related to the Stock market. Government should try to make Stock market investors friendly so that it could attract DII as well as FII to participate in the market. I would like to suggest that, if possible LTCG should be completely abolished, if not , in place of STCG and LTCG only one tax should be there ie capital gain tax at the rate of mah 10 percent and at the same time benefits of  cost indexation should be restored. It should make the structure quite simple and therefore in implementation also. Where is the question of STT is concerned, it should be 0.025 percent on buy or sell in equity delivery . 

Benefits of cost-indexation should be restored

When capital gain tax imposed in stock market at the rate of 12.5 and 20 percent for long and short term duration respectively it's affecting very much adversely for investors who have invested in this bear market in last two-there years back. They hardly could make any return from the market.In fact they are most probably looser in the market. If anyone has earned definitely the amount will be very little like 4, 5 or may be little more in this period. In such situations when earned money is very very small such as 4 or 5 percent on a big  investment like 40 lakhs or more and investor books it as profit  and paid long term capital gain tax at the rate of 12.5 percent, anyone can realise about his return. If investor gets benefit of cost -idexation his gain although small but might be saved. Cost-indexation generally eliminates the effect of inflation over the time period .It appears that benefits of cost -idexation should certainly be provided to the investors who invest their money in the stock market for long terms, otherwise investors realise big losses in terms of taxation as well as not getting the benefit of cost-indexation. So giving the benefit of cost-indexation to the investors will be a good practice for the healthy stock market. It should be taken seriously by concerned authorities.