Finance Ministry Refutes Claims of Future STCG Tax Hike

The Finance Ministry has denied reports suggesting a future increase in the short-term capital gains (STCG) tax, calling such claims "incorrect" and "misleading." The ministry clarified there were no plans to raise the STCG tax rate beyond the recent adjustment in the Union Budget 2024-25, where STCG tax on specified financial assets was raised to 20% from 15%. The report in question incorrectly speculated about future hikes, misquoting a senior official. The Budget also increased the tax-free limit for long-term capital gains on equity-related investments from ₹1 lakh to ₹1.25 lakh to benefit lower and middle-income groups.