Srinivasan Krishnan

Chartered Accountant

[Kiran Rajput @_KiranRajput]

H'ble @nsitharaman , Below, you state that you haven't increased any taxes on the Equity, claiming the only hike was the STT on F&O
What about rise in LTCG & STCG?

Ma'am,
Before October 2004
Long-term gains on listed shares were taxed at 20% with indexation, or 10% without — whichever worked out lower. Short-term gains had no special treatment at all. They were simply added to your income and taxed at your slab, which meant 30% for anyone in the top bracket. There was no STT.

October 2004:
The Finance (No.2) Act 2004 made a trade. LTCG on listed equity went to zero under Section 10(38). STCG got a flat concessional rate of 10% under Section 111A. In exchange, a new levy was introduced — STT, collected at source on every trade, at 0.075% on both the buy and the sell of a delivery transaction.
The logic was elegant: instead of chasing capital gains through assessment, collect a small amount from everyone, automatically, at the exchange. Compliance went up, litigation went down.

2005: Delivery STT raised to 0.10%
2006: Raised again to 0.125%
2008: STCG raised from 10% to 15%
2012: Delivery STT cut back to 0.10% — where it still sits today
This is cruelty,
**2018: LTCG exemption withdrawn. Section 112A brings back 10% on gains above ₹1 lakh, with gains up to 31 January 2018 grandfathered**

**2024: LTCG raised to 12.5% above ₹1.25 lakh. STCG raised to 20%**

2026: Budget raises STT on futures and options only. Delivery untouched
Very Good.

LTCG was in lieu of STT. Why you retained & increasing both?
Please make LTCG 0 & STCG 10%. Please.🙏🙏

[Samir Arora @Iamsamirarora]

Nothing surprising about this. If you are a consultant what would u tell a company with own GCC- simple, go to external service provider.
And if client is working with an external service provider what would u tell him- simple, have yr own GCC.

Same way they tell diversified companies to focus and for focused companies to diversify etc.

[Srinivasan Krishnan @srinivasan_k]

@saikirankannan @Digital_Nomadd No passenger is remembering the name? How come it remains so secret

[R. Balakrishnan @BalakrishnanR]

UPI has recovered its costs several times over as transactions became digital and more taxation and GST gets collected. It is a permanent rising annuity to the government. So, saying that costs to be recovered from those who can afford to pay, is wrong. But ego is at work here.

[Srinivasan Krishnan @srinivasan_k]

@Kanirudh01 @sunda_m Full audio is not available, unless hear full audio …not clear how can any firm position can be attributed.

[Anirudh @Kanirudh01]

Controversy on the existance of Lord Ganapathi One is the left is Shri Damodara Deekshitar (DD), One in the right is Shri Velukkudi Krishnan (VK) This thread will analyse the claims of both and we will see what is agreeable what is not and let us bring a Madhwa samanvaya ..(1)

[Srinivasan Krishnan @srinivasan_k]

@jgopikrishnan70 Every operating companies are listed has its own board. Why trust cannot hold shares of the commercial organisation? How do trusts are expected to invest? Genuinely not clear to me.

[TIMES NOW @TimesNow]

UPI Charges Row

“I am not convinced that charging for transactions is the way to make UPI self-sustaining. A much better way is enabling credit creation in the economy.” — @SubramanianKri, in conversation with @HeenaGambhir

[Ministry of Finance @FinMinIndia]

Speculation and claims that the MDR will be charged on UPI transactions are completely false, baseless, and misleading.

Such baseless and sensation-creating speculations cause needless uncertainty, fear and suspicion among our citizens.

The Government remains fully committed to promoting digital payments via UPI.

[RVAIDYA2000 🕉️ @rvaidya2000]

Much of the data bandied by supporters of global Tech and govt decision is POTA data--Pulled Out of Thin Air --Take them with Bucket ful of Salt// Atleat 60 % of uninc will be more than 1L permonth in turnover to bear burden of MDR//Will pass it on customers:!! RT

[Jalaalo-Bilaalo @martianlearner]

intelligent take.

[Srinivasan Krishnan @srinivasan_k]

@nagappanv "split the transaction" and fill up petrol for 4000 also😀

[Srinivasan Krishnan @srinivasan_k]

@ajayrotti @X Agree, no one will be discussing this - small shop owners will take cash or ask the customer to pay to their personal account. Split the transactions of less than 2000. Small shops offer discount from MRP for most product which they will stop to cover the cost.

[Srinivasan Krishnan @srinivasan_k]

@Tushar15 Professor @SubramanianKri has articulated well on what is wrong and nothing more needs to be said.

[Prof. Krishnamurthy V Subramanian @SubramanianKri]

“If UPI is costing the ecosystem money, why shouldn’t users pay for it?” - That’s the wrong question!

The right question is: what is the opportunity cost of charging UPI transactions and what are its social benefits?

India built UPI as sovereign-backed digital public infrastructure. And UPI has the characteristics of a public good:

1. Open and interoperable: Banks, fintechs and apps can connect to a common rail. One person’s use does not prevent another’s use.

2. Extremely low marginal cost: Once the infrastructure exists, adding another digital transaction is vastly cheaper than moving another rupee through the physical cash ecosystem.

3. Network externalities: The value of UPI to me rises when more people and merchants accept it. Every additional user makes the network more valuable to everyone else.

4. Financial inclusion: A small merchant does not need a card machine, a costly acquiring infrastructure or a proprietary payment network. A QR code is enough.

5. Formalisation and transparency: Digital transactions create an auditable trail, reducing the economic costs associated with informality, cash leakage and tax evasion.

6. Innovation externalities: Because the underlying rail is open and interoperable, entrepreneurs can build new applications and financial products on top of it.

7. Cash displacement: Every rupee shifted from cash to UPI can reduce the resources devoted to ATMs, cash transportation, security, handling and reconciliation.

8. Sovereign and systemic value: UPI gives India a domestic, interoperable payments rail rather than making the country’s payment infrastructure dependent on private international networks.

So the economics cannot be evaluated using private cost versus private benefit.

It has to be evaluated using: Social benefit − Social cost, because a large part of UPI’s benefit accrues to people other than the person making the transaction.

That is precisely what economists mean by a positive externality.

And this brings us to opportunity cost.

If the alternative is a more cash-intensive economy with ATMs, cash logistics, security, reconciliation and the associated infrastructure, then the relevant question is not:

“How much does one UPI transaction cost NPCI?”

It is:

“What resources does society have to give up to process that transaction through UPI rather than the next-best alternative?”

The opportunity cost of UPI is the resources required to maintain the digital rail.

But the opportunity cost of not using UPI includes the resources required to maintain the much more expensive cash ecosystem.

That comparison changes the economics completely.

The question therefore is not:

“Who is subsidising UPI?”

It is:

“Why would we impose a charge on a public infrastructure that generates benefits far beyond the individual transaction?”

UPI should be evaluated the same way.

[RVAIDYA2000 🕉️ @rvaidya2000]

Me sure that the new UPI rules formulated by some imported expert or Big 4--who have no idea about how India Uninc operate or retail trade/small dhabas work// Problem with US/UK experts and Our Indian leaders falling for it:PLEASE WITHDRAW IT @narendramodi @AmitShah RT

[RVAIDYA2000 🕉️ @rvaidya2000]

Let me out the cat: Some babus want to make this Govt unpopular and so this crazy scheme to amend UPI payments etc//Govt has fallen in the trap :)) @narendramodi @AmitShah RT

[Gurmeet Chadha @connectgurmeet]

First we killed the capital markets with consistent increase in STT, capital gain , dividend

Now we will slow down UPI too and further increase cash in circulation. 0.4% MDR is too steep!

The financial think tank is undoing all good work done by the govt.. too much arrogance.

[Ashneer Grover @Ashneer_Grover]

India mein koi 5 minutes number Google kar le to doodh ka doodh paani ka paani ho jaye.

RBI surplus to Govt : ₹2.87 Lakh Crores (US$30 Bn)
Total listed bank profits : ₹4.11 Lakh Crores (US$42 Bn)
NPCI - which runs UPI pre tax ‘surplus’ : ₹ 1,888 crores (US$200 Mn)

To nuksaan kis ka ho raha hai UPI se aur kaunsi subsidy de rahi hai Govt UPI pe jo chubh rahi hai?

Cost of running ATMs and cash logistics in India is ₹30,500 crores (US$ 3.0 Bn). If you want to optimise shut ATMs and promote UPI instead.

Any levy on UPI is just tax collection. UPI is the one scientific achievement of India everyone acknowledges par ab tax ki bali chadhegi.

[RVAIDYA2000 🕉️ @rvaidya2000]

This new scheme for UPI transactions remind me of the famous Reagan saying " if you think Govt is solution you are wrong--Govt is the problem " @narendramodi @AmitShah RT