DELAYED ACTION ON MONEY LAUNDERING
Gains made in equity-oriented mutual fund schemes till January 31, 2018 will be grandfathered or exempted. There will be no LTCG tax.
It will be applicable for the assessment year 2019-20 (Financial Year 2018-19). In other words, the Long Term Capital G ains of over Rs 1 Lakh made during the year 2018-19 will be liable to tax at 10 per cent.
My point is that we expected the govt to bring LTCG act way back in 2014 if she was so serious to deal with corruption and money laundering through Participatory Note (PN). Way back in 2012 SITs were formed and CBTD laid down the measures to tackle Black Money in India and abroad.
Concerns were raised that some of the money coming into the market via PNs could be the unaccounted wealth camouflaged under the guise of FII investment. It is a known fact. So the video forwarded is not an unknown information.
Even SEBI also informed that the outstanding value of PN or Offshore Derivative Instruments (ODIs) at the end of February 2015 stood at Rs. 2.715 lakh crores. SEBI further informed that the top five locations of end beneficial owner of ODIs were Cayman Islands, USA, UK, Mauritus and Bermuda contributing to 31.31%, 14.20 %, 13.49 %, 9.91 % and 9.10 % respectively of total ODIs outstanding.
The govt's inaction for all these years has been very surprising especially when it came to light that major chunk of outstanding ODIs invested in India are from Cayman Islands i.e. 31.31 %. This translates to roughly Rs. 85,006 Crores. The Cayman Islands had a population of 54,397 in 2010 according to Wikipedia. It does not seem conceivable that a jurisdiction with a population of less than 55,000 could invest Rs. 85,000 crores in one country. One would logically ask which all the business houses the govt was assisting in to manipulate clear of their shady activities? BJP's conspicuous display of money power even in Municipal elections are indicators to such shady money source in the absence of Lokpal Bill. The speed with which Chidambaram case is proceeding causing doubt of diverting the people's attention from the bank scam. Was the govt sleeping for three years and suddenly wakes up to deal with Chidambaram? What people like Chidambaram was doing since many years before 2014 is a known fact. Yes the timing is questionable. Had he been arrested by DRI and tried under financial offence by 2016 the govt would have earned her credibility of being serious with taking swift and strict action against corruption.
It will be applicable for the assessment year 2019-20 (Financial Year 2018-19). In other words, the Long Term Capital G ains of over Rs 1 Lakh made during the year 2018-19 will be liable to tax at 10 per cent.
My point is that we expected the govt to bring LTCG act way back in 2014 if she was so serious to deal with corruption and money laundering through Participatory Note (PN). Way back in 2012 SITs were formed and CBTD laid down the measures to tackle Black Money in India and abroad.
Concerns were raised that some of the money coming into the market via PNs could be the unaccounted wealth camouflaged under the guise of FII investment. It is a known fact. So the video forwarded is not an unknown information.
Even SEBI also informed that the outstanding value of PN or Offshore Derivative Instruments (ODIs) at the end of February 2015 stood at Rs. 2.715 lakh crores. SEBI further informed that the top five locations of end beneficial owner of ODIs were Cayman Islands, USA, UK, Mauritus and Bermuda contributing to 31.31%, 14.20 %, 13.49 %, 9.91 % and 9.10 % respectively of total ODIs outstanding.
The govt's inaction for all these years has been very surprising especially when it came to light that major chunk of outstanding ODIs invested in India are from Cayman Islands i.e. 31.31 %. This translates to roughly Rs. 85,006 Crores. The Cayman Islands had a population of 54,397 in 2010 according to Wikipedia. It does not seem conceivable that a jurisdiction with a population of less than 55,000 could invest Rs. 85,000 crores in one country. One would logically ask which all the business houses the govt was assisting in to manipulate clear of their shady activities? BJP's conspicuous display of money power even in Municipal elections are indicators to such shady money source in the absence of Lokpal Bill. The speed with which Chidambaram case is proceeding causing doubt of diverting the people's attention from the bank scam. Was the govt sleeping for three years and suddenly wakes up to deal with Chidambaram? What people like Chidambaram was doing since many years before 2014 is a known fact. Yes the timing is questionable. Had he been arrested by DRI and tried under financial offence by 2016 the govt would have earned her credibility of being serious with taking swift and strict action against corruption.
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