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Increasing tax on Short-term capital gains

Finance minister, P. Chidambram, has proposed increase in tax on short-term capital gains from 10% to 15% on sale of shares or units of equity oriented funds. It is bad from small investors point of view. As number of such investors has increased many fold, it was expected that finance minister will propose a reduction in tax.


As per experts, as a short term effect, this hike in tax rate could stem capital inflows and negatively impact the strength of Indian rupee against other major currencies. It could lead to selling by select FIIs to take money out of the table before the new rate comes in to effect. In long run, this hike will dampen the enthusiasm of small investors in share trading.

What is in the mind of finance minister?


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6 Responses

  1. lkjhgf says:

    As the craze for investing in the stock market is increasing day by day this step might have been taken to inculcate more benefit from it.

  2. betterlife says:

    Right apprach should be – lower the tax as more people will pay. Amount of collected revenue will be more.

    “प्रेम करो सबसे, नफरत न करो किसी से”
    “Love all, Hate none”

  3. jmalhotra says:

    jmalhotra

    you have rightly pointed out the future of this hike in tax rate ..it will surely make a difference for small investors in future…but who cares…they did it for their benefit and not for all of them

  4. dulaliputra says:

    What matters? Vote is very near. Let people think their party worthier. So, there is no need of a budget which will be aiming at all round development . The appeasing theory is working everywhere.

  5. Ruby says:

    Thank you for the information about the hike in tax it is a good eye opener.

  6. lkjhgf says:

    I dont think that 15 % tax imposition will stop the investors from investing or will slow down the transaction n thats why such move has been made , sir.

    The virtue lies in the struggle, not the prize.
    -lkjhgf

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