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CBDT sets Cost Inflation Index at 376 for FY26 for capital gains
The CII helps taxpayers adjust the purchase price of assets for inflation, thereby reducing their taxable capital gains when those assets are sold.
According to Amit Maheshwari, tax partner at AKM Global, a tax and consulting firm, the revision of the CII to 376 for FY26 is an annual update that enables taxpayers to adjust their capital gains for inflation more accurately each year.
'This effectively reduces the tax liability on long-term capital assets and ensures that individuals and businesses are taxed only on real gains, not on notional appreciation due to inflation. It is a key mechanism that brings fairness and efficiency to India's capital gains tax regime. Historically, CII was used in cases of long-term capital gains for assets such as land, buildings, patents, gold, securities, etc,' said Maheshwari.
Notably, the Finance Act 2024 withdrew the benefit of indexation using the CII for all assets sold after July 23, 2024. However, taxpayers selling land or buildings acquired before that date can still choose between paying tax at 12.5 per cent without indexation or 20 per cent with indexation.
'In that case, taxpayers have the option to pay tax at 12.5 per cent without indexation or 20 per cent with indexation. Hence, the revised CII of 376 is useful for taxpayers who will sell land and buildings acquired before July 23, 2024,' Maheshwari added.
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Time of India
2 hours ago
- Time of India
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Industry lobby CII on Sunday called for the enactment of a central legislation to guarantee time-bound delivery of services to businesses by Union ministries, with penalties for delays or deficiencies and a strong grievance redressal framework . This reform, it argued, is crucial for strengthening regulatory certainty, enhancing predictability and improving the overall ease of doing business in India . Explore courses from Top Institutes in Please select course: Select a Course Category Digital Marketing PGDM Data Science others Data Analytics Design Thinking Degree Cybersecurity Project Management Public Policy MBA Product Management Artificial Intelligence healthcare Technology Management Operations Management Leadership CXO Others Data Science Finance MCA Healthcare Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details A key challenge remains the uncertainty on timelines for approval, which creates delays and cascading costs. Addressing this issue would strengthen confidence and support more timely and predictable service delivery, the Confederation of Indian Industry (CII) stated. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Container Houses Indonesia (Prices May Surprise You) Container House | Search ads Search Now Undo "Despite commendable initiatives to mandate timelines in a range of areas, businesses continue to face procedural delays, regulatory uncertainty and non-adherence to timelines, significantly affecting operational efficiency and long-term investment planning. Absence of strictly enforced timelines is also felt in areas such as government refunds, disbursement of funds and subsidies, and raising claims by government departments on returns filed by businesses, which often causes cash flow disruptions and adds to compliance burden and uncertainty," said Chandrajit Banerjee, Director General, CII. While most Indian states have enacted their own Right to Services or Public Services Guarantee Acts, which ensure timely delivery of specified public services to citizens, no such central legislation exists to ensure timely service delivery by central ministries. Live Events "A legislation for time-bound delivery of services at the central level that ensures time-bound and faceless delivery of government services to businesses, with penalties for delays or deficiencies and a strong grievance redressal framework, would address this issue. Such a law would bring legal enforceability and institutional accountability to how public services are delivered to enterprises," Banerjee said. These services must be delivered within stipulated timelines, with clear tracking and provision of deemed approval in cases where deadlines are breached. Such deemed approvals should hold the same statutory validity as those granted through standard processes and must be enabled through faceless, digital channels to enhance transparency and reduce discretion. The proposed legislation should also require authorities to record and provide clear reasons for any rejection and establish a strong, multi-tiered grievance redressal system. This could include time-bound appeals, escalation pathways, digital complaint tracking, and compensatory payment in cases of prolonged inaction, CII suggested. To operationalise this framework for regulatory approvals, renewals, and exits, CII has additionally proposed having a separate legislation for Union ministries and departments mandating that all such services be delivered exclusively through the National Single Window System (NSWS), which is the central digital platform launched in 2021 for regulatory applications across central ministries and states. While NSWS is a landmark reform, it currently faces limitations due to partial integration by ministries and states. For instance, despite requiring numerous clearances, the Ministry of Labour and Employment currently offers only five approvals on the NSWS platform. In this context, CII emphasised that NSWS should be the exclusive platform for processing and granting all central approvals. Granting it a legal status and linking it to the proposed Central Right to Services legislation would establish NSWS as the cornerstone for enforcing timelines, enabling deemed approvals, and providing real-time visibility to both businesses and regulators, CII said. "Providing statutory backing to NSWS will institutionalise its mandate, ensure universal adoption by central ministries, empower states to notify their rules for integration, and establish NSWS as the single digital interface through which services are applied for and delivered to businesses. This shall ensure that legally mandated timelines are met through a unified, accountable digital platform," said Banerjee. If developed and implemented effectively, this combined legislative and digital reform has the potential to be a game-changer for India's regulatory ecosystem, the industry lobby said. As India aspires to become a global manufacturing and investment hub under its India @100 vision , aligning of legal mandates with a fully functional digital backbone will play a pivotal role in enhancing investor confidence and ensuring delivery-driven governance, Banerjee observed.


The Hindu
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Business Standard
13 hours ago
- Business Standard
Enact legislation to ensure time-bound delivery of services: CII
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