Summary: New Delhi, Aug 23 (ANI): The surcharge levied in the union budget on short-term and long-term capital gains
of foreign portfolio investors (FPI) and the one on equity in the case of domestic investors have been abolished, Finance Minister Nirmala Sitharaman announced on Friday restoring the pre-budget position.
Tax rates on long-term capital gains
are 0%, 15%, or 20%, depending on the seller's income.
As a result, there is a lower tax rate for long-term capital gains
as opposed to short-term capital gains.
The IRS recently announced its inflation-related adjustments to the tax code for 2019, and one of those changes was the revised long-term capital gains
The Fund's Board of Trustees has approved a managed distribution policy for the Fund (the "Plan") in reliance on exemptive relief received from the Securities and Exchange Commission which permits the Fund to make periodic distributions of long-term capital gains
more frequently than otherwise permitted with respect to its common shares subject to certain conditions.
Morgan Stanley closed-end funds, Morgan Stanley Asia-Pacific Fund Inc (NYSE:APF); Morgan Stanley Emerging Markets Debt Fund Inc (NYSE:MSD); Morgan Stanley Emerging Markets Domestic Debt Fund Inc (NYSE:EDD); Morgan Stanley Emerging Markets Fund Inc (NYSE:MSF); Morgan Stanley India Investment Fund Inc (NYSE:IIF); The Latin American Discovery Fund Inc (NYSE:LDF); and The Thai Fund Inc (NYSE:TTF) reported on Wednesday monthly and quarterly dividends on their net investment income, short-term and long-term capital gains
net long-term capital loss (defined above) minus the amount by which by the taxpayer earlier reduced foreign long-term capital gains
via the U.S.
The capital gain portion of the distributions is comprised of long-term capital gains
estimated at USD0.8462 per share and short-term capital gains estimated at USD0.4363 per share.
According to Suresh Sadagopan, Founder, Ladder7 Financial Advisories , while there is no long-term capital gains
tax in equity investment, such a tax liability may arise in case you had invested in a real estate property and want to sell it now.
This brings the total year-end distribution to $0.61 per share, which consists of the previously declared $0.10 per share fourth quarter distribution plus the $0.51 per share additional distribution, sourced primarily from long-term capital gains
. The distribution will be included in 2013 income for shareholders subject to income tax.
112-240, taxpayers can continue to save significant taxes on qualified dividends and long-term capital gains
One area that continues to be a significant source of controversy is whether both dividends and long-term capital gains
should receive preferential tax treatment.