Samir Arora's 'zero LTCG tax' proposal sparks war of words with Rajeev Mantri; latter calls it 'laughable idea'

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Also Read: ‘Best thing to create wealth for public’: Helios Capital's Samir Arora bats for zero LTCG tax; here's whyBetter to attract real FDI money (which only takes out dividends of two per cent per annum and reinvests the balance) or FII (which broadly remains invested over time and even redemptions are not bunched too much on general), suggested Arora.He added that attracting FII money requires the least amount of effort or policy changes, as it just requires the relaxation of capital gains tax. That will also help domestic investors, attract risk-taking money, allow the government to raise good money from PSU divestments, and collect money from higher STT collections.To this proposal, Mantri responded, ‘’This is a narrow and self-serving approach.

Everybody wants a tax holiday for themselves, but of course somebody has to make good the overall revenues of the government. Who will bear the burden?''Mantri returned, asking ‘’why secondary market traders or investors should receive a capital gains tax holiday''.

‘’What share of investment by FIIs actually goes into the hands of a company? And they should effectively receive a freebie by way of a tax holiday? No,'' said Mantri in his post on ‘X’.LTCG tax is levied on the profits earned from the sale or transfer of certain long term assets, such as stocks, real estate, mutual funds, or other investment tools. The tax is applicable only when the assets are held for a specific period, typically more than one year, before they are sold.Arora further responded to Mantri, ‘’You may not know - in fact, you do not know - that no country, as in zero countries in the world - charge capital gains taxes to foreign investors.