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Link between LTCG Tax hike, poor Nifty show ever since this hike over last 2 yrs with mass FII exodus, continuously Sliding Rupee circulating all over social media finally leading to some Positive Govt action?
LTCG Tax raised to 12.5%, STCG Tax raised to 20% on
July 23, 2024, NIFTY 24,479
Almost 2 yrs later, NIFTY 23,405 (5% negative return)
Same period S&P 500 - 5550 to 7600, (~37% up in the same period)
INDIA being AI laggard (therefore, already at a global disadvantage), least that can be done to incentivise investments before it’s too late (before India completely loses it’s edge as attractive investment destination) is to -
1. Roll back LTCG tax
2. Also, important to not re-introduce it when the going gets good that is infuse confidence to market participants about stable policy ahead.
Is it too much to ask for? @raghav_chadha
FM ji, FM ji , itne tax mein kaise bharu.
STT , STG , LTCG badha, kya kahu,
Upar se dividend pe, do do tax bhi pay mein karu?,
(My song dated 02 August 2024.).
@nsitharaman@nsitharamanoffc@FinMinIndia
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.