Budget 2018: Betting on stock market boom? Capital gains tax may end party
Brokerages like Kotak
Securities say the Modi govt may make it harder for investors to claim
exemptions on capital gains from equity investments
BUDGET NEWS : The taxman may additionally emerge as being
a speed bump for the Indian stock market place,
which like its opposite numbers across the world has marched to more than one
facts within the beyond 12 months.
Brokerages including Kotak
Securities say high Minister Narendra Modi's administration can also make it
harder for traders to say exemptions on capital profits from equity investments
when the federal budget is announced on February 1. Modi's circulate in 2016 to
scrap high-price forex payments and the implementation of the new income tax
closing July have hurt demand and sales, forcing the authorities to borrow
greater.
"The authorities has to find
avenues for producing additional revenue to bridge the monetary deficit,"
Shefali Goradia, partner at Deloitte Touche Tohmatsu India LLP, said in an
interview in Mumbai. "Tweaking the lengthy-term capital gain damage is a
low placing fruit."
nevertheless, the authorities can
also turn away from doing so -- any alternate can also spook man or woman
investors, who've flocked to mutual budget in view that Modi swept into energy
in 2014. the principle S&P BSE Sensex soared 28 consistent with cent
remaining year, beating the S&P 500's 19 in step with cent strengthen, as
domestic budget offered a report $19 billion of stocks -- extra than double the
inflow from foreign places. The cash ban helped boost up the shift to monetary
property, taking the sheen off gold and property.
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