Markets of property, shares and jewellery are speculative in nature. People buy these assets either for security (Investment) or for speculation. The transactions in these assets are also subjected to capital gaintax.
Capital gain can be either long term or short term depending upon the period of holding. Long term is subjected to less tax than short term. Rate of tax on long term ranges from 0% to maximum 20%.
The other benefit of long term asset that they can be indexed. Govt. has come out with index table called Cost Inflation Indexwhose base year was fixed as 1-4-1981.
In Finance Bill 2017 the Govt. has taken a very bold step and has shifted the base year from 1981 to 2001 for the benefit of investors.
Also period of holding of land and / or building has been reduced from 36 months to 24 months.
Kudos to our Finance Minister Mr. Arun Jaitely. Wonderful job sir