Monday, September 21, 2026
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.
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