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Stock market news:
Following the announcement of tax reform for Indian stock market investors in Budget 2024 by the finance minister, Nirmala Sitharaman, Dalal Street experienced intense selling and plummeted from its intraday high. Stock analysts claim that the FM has doubled the STT rate on stocks and indexes trades,
increased the short-term capital gain (STCG) tax from 15 percent to 20 percent, and increased the long-term capital gain (LTCG), which tax from 10 percent to 12.50 percent.
Here we list out the top 5 blows that Finance Minister Nirmala Sitharaman has announced in Budget 2024:
STT rate on derivative trade
Nirmala Sitharaman, the finance minister, increased the special taxation rate for equity and index transaction from 0.01 percent to 0.02 percent in the Budget 2024. “I have several suggestions for broadening the tax base,” she proclaimed. First, an increase of 0.2 percent and 0.1 percent, respectively, is suggested for the Security Tax on commodities options and futures.
*Rise in STCG Tax in India *
“Short-term gains on certain financial assets shall from now on attract a tax rate of 20%, while which on all other kinds of assets while all non-financial assets shall continue to attract the applicable tax rate,” stated the Finance Minister, increasing the rate of short-term capital gain (STCG) tax from 15 to 20 percent.
Change in Long Term Capital Gain (LTCG) Tax
“On the other hand, long-term gains on all types of financial assets will attract a tax rate of 12.5%,” remarked FM Nirmala Sitharaman, who boosted the LTCG Tax from 10% to 12.50 percent.
Classification of listed non-listed assets
Nirmala Sitharaman raised the time period for classifying non-listed assets from one year to two years, whereas she left listed assets,
including equities, out of consideration.
Capital gain tax on market-linked debentures
In her Budget 2024 mailing address, Nirmala Sitharaman declared, “Unlisted bonds and debentures, debt mutual funds, or market linked debentures, irrespective of the holding duration, will attract tax on capital gains at applicable rates.”
