- Government proposes long-term capital gains tax on stocks
- Sensex reacts sharply, tanks over 200 points; rebounds, rupee weakens
- Sensex had soared 28 per cent in 2017
The government may tax profits from stock investments held for more than a year, the people said, asking not to be identified as Finance Minister Arun Jaitley's budget speech is underway in parliament.
At present, profits from stock investments held for more than 12 months are tax exempt. The S&P BSE Sensex fell 0.3 per cent at 12:28 p.m., erasing previous gains of as much as 0.7 per cent. The rupee weakened 0.3 per cent to 63.80 per dollar.
The Sensex soared 28 per cent in 2017, beating the S&P 500's 19 percent advance, as domestic funds bought a record $19 billion of shares -- more than double the inflow from overseas. Modi's move in 2016 to scrap high-value currency bills helped accelerate the shift to financial assets, taking the sheen off gold and property.
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