The Government would introduce capital tax regime changes to simplify it. The Primary deliberation will be parity within the assets, and the Centre might consider altering the tax rates.

A task force recommended changes in indexation advantage rules in 2019. It is predictable to be the main basis of the review. Further down the current rules, equities and preference shares, zero coupon bonds, equity-based mutual funds, and UTI units are deliberated the long-term assets if held for over 12 months. Debt-oriented mutual funds and jewellery are known for their long-term assets if it is held over 36 months. Besides, immovable property or real estate is regarded as a long-term asset, holding for over 24 months.

As per the task force sanction controlled by Akhilesh Ranjan, a former Central Board of Direct Taxes member, the assets must be divided into three classes i.e. equity, non-equity financial assets, and other property. It suggested that all except equity must regard the indexation benefit. It is now allowed on debt funds and real estate. It recommended a 10% capital gains tax on the equity assets sale held for over 12 months. For equity holding for less than 12 months, it asked for a 15% short-term capital gains tax.

For non-equity financial assets, long-term capital gains were commended for being 20% if held over 24 months. For further assets, it recommended a 20% tax with indexation on gains if held for over 36 months, report.

Under the current rules, long-term capital gains are taxed at 20%. In the case of equity, if the gain is more than Rs 1 lakh, a 10% tax is levied. However, a 15% tax is charged in the short term. Short-term capital gains are taxed on other assets after being smashed with the income tax.