Any concession on investment in shares,is encouragement of speculation. Most of new issues go to financial institutions and are highly priced unrelated to earnings/dividends. Funny policy.
Dear Author, why cant you give some rough estimate of the tax collected under LTCG 10%, instead being so vague like Mr Baliga? The retail investor can be allowed to accumulate the exemption limit -suppose if s/he has not utilised the limit in FY 2019, s/he can be allowed to carry over! In India the poor gets POORER. And I need not add that ......
It is retrograde indeed. Govts either CongI or BJP never encourages Savings or Investments. It is a pity. Majority of country do have a tendency to save in spite of such a low FD/SB a/c int rates! STCG 15% for those who hesitates to invest and 10% (LTCG) who WANTS TO INVEST! See the difference. Govt imposes Volatile Taxes- reason for FPIs, etc. tend to back out. In the end the cap of Rs.1.00 Lakh can be enhanced to Rs.5.00 Lakhs p.a. and 10% can be brought down to 5%. You know very rarely retail investors gain from the share market. Naive Majority lose!!! But in our country our voices are buried under rich and Corporate Voices. People who voted for BJP is getting disappointed day by day.
STT and LTCG together can not be justified, same with the DDT on dividend distribution from "tax paid profit." I suggest FM should increase the rate of STT to some extent, but spare the investors, the headache of filing Capital Gain( at least LT), which needs maintaining total records of date of investment and sell, which is cumbersome.
Increasing STT to a reasonable extent and levying CGT above threshold of say 10 lac will be reasonable and not so cumbersome to implement.
Where are ethics nowadays?
No use commenting since they will fall on deaf ears !
STT LTCG DDT Dividend tax = Dearth of vital risky equity capital for businesses = death of animal spirits = unemployment slowdown in consumption = low direct and indirect tax collections.
Highly anti national.
Our intelligent babus had made a strong case 3 years ago to Jaitley for this unhealthy LTCG and as Govt always welcomes new tax avenues to spend on doles needed such excuses to garner the booties. Hence globally India is termed as tax terror country. Hope new minister of finance will change this misconception of global investors not by doling out but by being really prudent and rationalist. Or we see domestic and international private investments remain timid for years to come.
The government should try to plug the loopholes in the existing taxes and simplify the rules so that even paying tax is painless. All the exemptions should go and tax it on the basis of gross income at a lesser percentage so that no accounting jughlery is needed. Give incentive to savings so that idle money will be made available to investment.
Good and simple administration is feared in the corridors of power. Suggest some complicating twist.
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