Abolishment of capital gains tax needed to revive sentiment: Shome

After recommending deferment of the prickly General Anti Avoidance Rules (GAAR) by three years, Parthasarathi Shome, the head of an expert committee set up by Prime Minister Manmohan Singh to address concerns of foreign investors, said abolishing capital gains tax on the transfer of securities is the right step. India has to be competitive in attracting investment to reverse sluggish growth, and needs inflows to balance its capital account, Mr Shome told NDTV in an interview.