The Direct Tax Code is to be introduced from Apr 1, 2011, which would have significant bearing on the long term and short term capital gains. While the differentiation is planned to be abolished, the bigger problem is that the idea of capital gains itself might be merged with Income for the year and taxed as per the appropriate bracket. While there is easing of the tax slabs, but general market feeling is that there would be heavy selling before the tax code takes into effect, so that people can benefit from the 0% tax rate on long term capital gains right now. Does anybody else have any opinion on this? Also how would this affect personal finances esp for investors and traders? Also is there anyway to help plan for these tax liabilities and how they might guide investment decisions going forward?


Edited by Crimsonarcher - 15/Jun/2010 at 10:38am