Respected @nsitharaman ji and @FinMinIndia ,
Suggestion 1 of 3 for strengthening India's capital markets:
Long-term capital gains tax on listed equities should be abolished.
A long-term shareholder is not a speculator but a provider of patient risk capital. By investing in and holding businesses, investors help companies expand, create jobs, innovate and contribute to India's economic growth.
India requires enormous amounts of long-term capital to build world class enterprises, infrastructure and global champions. Tax policy should encourage households to move savings from passive assets, including imported stores of value such as gold, into productive businesses that create jobs, generate tax revenues and build national wealth.
The appreciation in a company's value is not created in isolation. During its growth journey, the government already collects corporate tax, GST, income tax from employees, customs duties, stamp duties and numerous other levies. Long-term capital gains are often the final outcome of economic activity that has already generated substantial tax revenues.
Most importantly, tax policy should clearly distinguish between investment and speculation. A long term shareholder is a partner in wealth creation, not merely a participant in market transactions. Tax policy should reward long-term ownership of productive businesses and distinguish it from short-term speculation.
India needs more patient capital, more entrepreneurship and more long term investing. Abolishing long-term capital gains tax on listed equities would be a powerful step in that direction.
Respectfully submitted.
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@sandipsabharwal Sir , respects
being in wood imports its good to read your tweet, but inspite of deficits dont they manage to pull off $ and many currencies including rupee keep falling again and again .
Do you see this not happening going ahead Please .
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With no milestones and Direction in mind the entire hardwork done goes down drain .
First think well, on how really big can you grow in the space , you are devoting time and energy in .
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@varinder_bansal True….Its unfortunate that businesses like Infosys, M&M etc get tax notices despite they being compliant
Disappointing to see finance ministry not working on Modiji’s dream