UPSC Mains 2018 · GS III · Q2 · 10 marks · 150 words

Comment on the important changes introduced in respect of the Long-term Capital Gains Tax (LCGT) and Dividend Distribution Tax (DDT) in the Union Budget for 2018–2019.

हिन्दी में

केन्द्रीय बजट, 2018–2019 में दीर्घकालिक पूँजी अभिलाभ कर (एल० सी० जी० टी०) तथा लाभांश वितरण कर (डी० डी० टी०) के संबंध में प्रारंभ किए गए महत्त्वपूर्ण परिवर्तनों पर टिप्पणी कीजिए।

Taxation

How a topper answered the closest question

Toppers wrote this one in a test series: “Comment on the important changes with respect to the Long-Term Capital Gains (LTCG) and Securities Transaction Tax (STT) in the Union Budget 2024-25. Evaluate the impact of such changes on India's savings and investment regime.”

Raghav JhunjhunwalaAIR 4 · CSE 2025 · 35 wordsTheir whole copy

Opening

Budget 24-25 demarcated imp. tax reforms with respect to LTCG, STCG and STT

Body

Diagram
- LTCG Changes - uniformity @ 12.5% p.a. - For Gold, it was reduced to 12.5% - For financial assets, ↑sed from 10% to 12.5% + Indexing removed - STT changes
Diagram
- Rationale behind - Improving tax to GDP ratio (stuck in 11.6%) - Progressivity in tax

Impact on Savings & Invst.

(1) Financial Investors are now slightly worse-off : may disincentivize stock trade. (2) → [Savings] may rise

Close

None written.

2 more toppers’ answers to this question, part by part, and how they all approached it: open the question.

Source: UPSC, Civil Services (Main) Examination 2018, General Studies Paper III, Q2. The paper on upsc.gov.in. Themes and links to toppers’ answers are by UPSC Grade, not by UPSC.