New Delhi: Finance Minister Arun Jaitley on Thursday proposed to tax long term capital gains exceeding Rs 1 lakh at the rate of 10 percent without allowing the benefit of any indexation.
Jaitley added that currently, Long Term Capital Gains arising from transfer of listed equity shares, units of equity oriented fund and unit of a business trust are exempt from tax.
The distribution intended by the fund will be equal its regularly monthly distribution amount mentioned above and all available net investment income and net short and long term capital gains
, as required under the Internal Revenue Code of 1986, as amended.
It is able to make periodic distributions of long term capital gains
. All or part of the distribution may be treated as long-term capital gain or qualified dividend income (or a combination of both).
The rates of capital gains tax from the sale of a real estate property depend on the duration for which the property was held Compared to equities, where the long-term capital gains is waived off after just one year of holding in case of real estate the long term capital gains
of 20% after indexation is applicable when the holding period is more than three years.
Also, for many taxpayers who claimed the Chin lax Credit last year, the Treasury mailed checks as an advance payment of the credit's increase, The new tax law also lowered the tax rates for long term capital gains
and qualifying dividends, allowing taxpayers to reduce their estimated tax payments for the year following May 2003.
PDT and HTD will pay monthly distributions of USD0.0975 and USD0.1380 per share, respectively and long term capital gains
distributions of USD0.3000 and USD0.1639 per share, respectively.
Further, the company said that this dividend consists of short term and long term capital gains
and also, shareholders with automatic reinvestment will receive their distribution in the form of additional shares at the closing prices on 23 December 2014, while others will receive their distribution by check, besides, the distributions do not affect the fund's total return.
The distribution will be paid on 10 July 2014 and the cumulative distributions paid this fiscal year to date are from the following net investment income; net realised short term capital gains; net realised long term capital gains
; and return of capital or other capital source.
Special Opportunities Fund Inc (NYSE:SPE), a regulated investment company, elected to retain USD1m or USD0.1468 per common share of its realised long term capital gains
for the year ending 31 December 2012, it declared on Monday.
(NYSE:MSD) released a quarterly dividend of USD0.14 per share; (NYSE:EDD) a dividend of USD0.30 per share for quarter; (NYSE:MAY) a dividend of USD0.130005 per share from net investment income and USD0.629326 per share from long term capital gains
; and (NYSE:TTF) a dividend of USD0.130005 per share from net investment income and USD0.629326 per share from long term capital gains