Correct option is D
As part of the Union Budget 2022, the Indian government introduced a 15% surcharge on long-term capital gains (LTCG) from all types of assets, effective from 1 April 2022. Earlier, the surcharge was primarily levied at different rates, depending on the type of asset, but the new rule standardizes this for all categories.
Long-term capital gains arise from the sale of assets such as property, equities, and gold, held for a specified period (over 12 months for equities, and over 24 or 36 months for other assets). The aim of introducing a uniform surcharge was to simplify tax structures and reduce ambiguity.
This new surcharge structure applies to gains above ₹1 crore. The surcharge rate was increased from 10% to 15%, which significantly affects high-income individuals and large investors. However, the base LTCG tax rate remains at 10% for equity investments, making the overall tax on such gains 11.5% when combined with the surcharge and cess.
The move is seen as an attempt to ensure that the wealthy contribute more to the government's revenue while maintaining a balance for middle-class investors.
