I believe that long term capital gains tax should not be levied. The government can increase the STT marginally. This is easy to collect. The government can also extend the period of holding of stocks for qualifying as long term from current one year to say 3 years. This will boost the morale of real long term investors and short term traders and investors will continue to pay tax at current rates of 30% and 15% respectively.
Lame reason 1: Taxing LTCG is necessary to finance the budget sops. If budget sops are for purely electoral gains and don't have any other justification, govt has no right to finance it with additional tax sources such as LTCG tax. Even in the case of justified budget sops, taxing LTCG cannot be the only way to finance them. Many election-year budget sops have happened in the past, without touching LTCG.
Lame Reason 2: "People are making huge profits in stock markets nowadays". Everyone knows this is a bubble likely to burst soon, and everyone knows that there are huge risks involved, especially for small-time retail investors. To change taxation policy based on such transient market situations is ridiculous.
Lame reason 3: "People are laundering black money by manipulating non-liquid shares". Detection of manipulation and detection of black money are specialized areas in their own right, and vast govt machinery and mechanisms already exist for assisting that. LTCG tax exemption benefits honest tax payers who are in far greater numbers, than the suspected money launderers. How is it justified to punish all these honest people, on the pretext of catching dishonest ones? Can the govt guarantee that by taxing LTCG, there will be no more money laundering and no more market manipulation?
Re: Article full of lame reasons
by sekhar on Jan 28, 2018 07:03 AM
If govt suspects black money laundered back as white money by rich business/polititions/Dad as,then punish them with tax on longterm gains of more than 10 lakhs per year,but not on small& middle class as 10 lakhs gain/annum is nothing in the present economy scenario.Best for BJP govt to keep majority of voters is 1) no income tax up to 5 lakhs. 2) Exempt tax on Equity dividends up to 3 lakhs/annum 3) no tax on bank interests uoto 30000 4) increase section 80 C limit up to 2.5 lakhs now and increase every year by 50000.Govt should try to get more tax from the rich above 2 crores property instead of incurring the wrath of middle class& salaried one
Re: Re: Article full of lame reasons
by Rakesh Dandekar on Feb 03, 2018 04:37 PM
if your suggestion is correct and in case it is implemented then next year who may be come in power will definitely take poision to rule this country. during this year also income source is very less and govt depending only from GST.above all how 5 lakh/4 lakh/3 lakh paid to high profile VVIP. definately either FM dont know the country's economy or PM these two people are depending upon buarcartiecs. Yesterday MMS said I am not complaining about the budges and how they will implement whatever they announce. today Goyal said railway will allow private parties for railway lining. All these people knows the economy of India is sinking and may require early election to wash their hands from this mess after we the tax payers are in looser. I am senior citize and asked my friend in SBI about 50K interest free loan. he asked my how you will return money I said I am retired from pvt company without any pension and dpending upon with my son then you will not get not only you any senior citizen will get this benefit because india has 25% senior citizen and particularly in rural area without any work so how govt will give you money. I said this is the question how FM announced this scheme without kowing. Any body can clarify how I can get 50K interest free loan.
Re: Re: Article full of lame reasons
by Rakesh Dandekar on Feb 03, 2018 04:38 PM
if your suggestion is correct and in case it is implemented then next year who may be come in power will definitely take poision to rule this country. during this year also income source is very less and govt depending only from GST.above all how 5 lakh/4 lakh/3 lakh paid to high profile VVIP. definately either FM dont know the country\'s economy or PM these two people are depending upon buarcartiecs. Yesterday MMS said I am not complaining about the budges and how they will implement whatever they announce. today Goyal said railway will allow private parties for railway lining. All these people knows the economy of India is sinking and may require early election to wash their hands from this mess after we the tax payers are in looser. I am senior citize and asked my friend in SBI about 50K interest free loan. he asked my how you will return money I said I am retired from pvt company without any pension and dpending upon with my son then you will not get not only you any senior citizen will get this benefit because india has 25% senior citizen and particularly in rural area without any work so how govt will give you money. I said this is the question how FM announced this scheme without kowing. Any body can clarify how I can get 50K interest free loan.
Re: Re: Article full of lame reasons
by Rakesh Dandekar on Feb 03, 2018 04:38 PM
if your suggestion is correct and in case it is implemented then next year who may be come in power will definitely take poision to rule this country. during this year also income source is very less and govt depending only from GST.above all how 5 lakh/4 lakh/3 lakh paid to high profile VVIP. definately either FM dont know the country's economy or PM these two people are depending upon buarcartiecs. Yesterday MMS said I am not complaining about the budges and how they will implement whatever they announce. today Goyal said railway will allow private parties for railway lining. All these people knows the economy of India is sinking and may require early election to wash their hands from this mess after we the tax payers are in looser. I am senior citize and asked my friend in SBI about 50K interest free loan. he asked my how you will return money I said I am retired from pvt company without any pension and dpending upon with my son then you will not get not only you any senior citizen will get this benefit because india has 25% senior citizen and particularly in rural area without any work so how govt will give you money. I said this is the question how FM announced this scheme without kowing. Any body can clarify how I can get 50K interest free loan.
