Bad news for FnO traders

[Pradumya]

🚨Major Tax Update for futures and options traders

Government is considering to include FnO in speculative transactions. Also TDS on FnO transaction is under consideration.

Source - Financial Express

Link - https://www.financialexpress.com/money/fampo-transactions-may-attract-higher-tax-rate-3529354/

 

[Pradumya]

I am only an investor, means I only place delivery orders. No intraday, no FnO.

Wanted to know your reactions on this. I have no idea what impact this change has on trader mindset

Yes related to TDS, from what I understand, decline in FnO traders could be seen. Much like crypto.

 

[SSV]

🚨Major Tax Update for futures and options traders

Government is considering to include FnO in speculative transactions. Also TDS on FnO transaction is under consideration.

Source - Financial Express

Link - https://www.financialexpress.com/money/fampo-transactions-may-attract-higher-tax-rate-3529354/

From the long term perspective, it is a right move..
I support this..
FnO is nothing but a gamble and the pros only should play this game..
Not a common retail investor.. this is a very right move

 

[SSV]

🚨Major Tax Update for futures and options traders

Government is considering to include FnO in speculative transactions. Also TDS on FnO transaction is under consideration.

Source - Financial Express

Link - https://www.financialexpress.com/money/fampo-transactions-may-attract-higher-tax-rate-3529354/

This is not like completely taking away FnO trading altogether.. they are discouraging it for the masses and leaving it to the pros..
I strongly support it.. and also these masses will have to bear the brunt when sh*t hits the fan and it is not good for the sentiment of the market longterm....

 

[SSV]

It doesn't impact me anyway.. here was what I said on June 9 , 2024..

How many stock brokers you have and for what purposes?

Groww - Mutual funds and delivery (no issue with 4th Jun NAV) Zerodha - for Univest Upstox- for Liquide Dhan- small case Can you tell me the better option between Univest and Liquide as you are using both of these?

www.technofino.in

 

[SSV]

And also on a sidenote, they are bringing this measure at the time when the Indian markets are flying high purely based on the speculation that the present Govt is conducive to the businesses.. but at the moment Indian markets are over priced based on fundamentals...
Hence Correction is very likely in the short term.. and may move up based on fundamentals if everything falls in place as per expectation of the present Govt..
Let see..

 

[Shin-Chan]

I would like to see the legal agreement for this as F&O is not speculation and just because Government using retail as bait for increasing their revenue they shall look at the liquidity providers the Props.





On side note its like 3.5L loss for a full time derivative trader !! Thats huge for any trader earning <=50L and thats majority of derivative traders.

 

[SSV]

I would like to see the legal agreement for this as F&O is not speculation and just because Government using retail as bait for increasing their revenue they shall look at the liquidity providers the Props.





On side note its like 3.5L loss for a full time derivative trader !! Thats huge for any trader earning <=50L and thats majority of derivative traders.

They wont make FnO trading any illegal..
However they can change how the income / loss is treated as per IT Act and other acts.. if they want to
They will still consider legalities of every move they consider for modification.

 

[Shin-Chan]

They wont make FnO trading any illegal..
However they can change how the income / loss is treated as per IT Act and other acts.. if they want to
They will still consider legalities of every move they consider for modification.

They can charge flat 30% on derivative income but calling it speculative will not be correct.



If government want's that let that be but nothing worth it can be expected from current FM.

 

[Shin-Chan]

If they continue with same FM, even LTCG will be taxed at 30% flat that should be ideally barrier for retail traders in Markets as per their logic.

 

[SSV]

They can charge flat 30% on derivative income but calling it speculative will not be correct.



If government want's that let that be but nothing worth it can be expected from current FM.

Yes this is correct .. they are weighin different options..
that tagging it as speculative is not to offset losses against regular income..

anyway , this will think loooong about it before making any decision... I believe ..

 

[coolguy1]

Equities are also risky, everything could be declared as gamble by them.

I think people are smart and educated enough if they deal with FnOs, making some quizzes compulsory for the apps before traders start trading is a better way than asking users to pay TDS and adding extra taxes or restricting it.

 

[Deleted member 26954]

I am already paying 30% tax on derivatives income..Additionally, I pay around 10 lack p.a. in brokerage and other taxes related to derivatives trading....The rational behind this move is to flush out small derivative traders and help big players to make money as the big players find it difficult to make money with so many retail traders.

If you consider all the taxes including double taxation, the net income remains approx 40%, when the odds to earn money in derivatives trading is only 1 out 10.....Out of 12 months, "7 months" i work only for the Government.

* Note: it is only a speculative news and 99% times they are not true and are published only to grab eyeballs.

 

[Tejo]

🚨Major Tax Update for futures and options traders

Government is considering to include FnO in speculative transactions. Also TDS on FnO transaction is under consideration.

Source - Financial Express

Link - https://www.financialexpress.com/money/fampo-transactions-may-attract-higher-tax-rate-3529354/

This is unfair 😒

From the long term perspective, it is a right move..
I support this..

It effects all the people

FnO heavy players makes much movement in the market for the advantage.

 

[Deleted member 26954]

If they continue with same FM, even LTCG will be taxed at 30% flat that should be ideally barrier for retail traders in Markets as per their logic.

FM does not take any decision...all decisions are taken by PMO

 

[sourpai]

Better way to tackle the explosive participation of retail is to increase the lot size

Currently one N / BN lot can be purchased at mere 2K - 3K. Why not make this 50K minimum? Lot of people will drop out. Like in US markets where lot size and margin requirements are quite high

Govt strategy is to increase retail participation by reducing lot size to gain more STT and taxes... and afterwards taxing income. This is totally useless strategy. Everyday expiry is another strategy used by NSE/BSE to increase their income

 

[JAM]

From the long term perspective, it is a right move..
I support this..
FnO is nothing but a gamble and the pros only should play this game..
Not a common retail investor.. this is a very right move

This move like most moves since the early 2000s is to prevent the retail and new investors from ever gaining a foothold.
Futures and Options are the checks and balances of the market so how is it good from the long term perspective ?
Futures and Options are only allowed for big stocks and indices anyway and we already have so called "upper and lower circuits".
In developed markets retail investors participate through the derivatives market. Indian markets don't even have a proper derivatives market thanks to govt interference.

 

[m4b]

Bhikmangi Govt back in action!
Take tax from profit and doesn't bother say hello when in loss.
wahh Nirmala tai wahh

 

[Wealth is my birth right!]

News is speculation
Market at all time high so a small correction will change everything lets see how FM reacts

 

[m4b]

News is speculation
Market at all time high so a small correction will change everything lets see how FM reacts

doesn't give a flying F**k about any lower/upper middle class and openly said it's a sleeping partner.
Let alone Powell said this, the Dow would have crashed 15% that day.
I think investors in India are now immune to the FM 😛