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LTCG hiked to 12.5%. Big blow to investors.

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chasni said:
Indexation has been removed from all asset classes including real estate. Ye hai asli masterstroke. 😀
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As a personal Investment funda I invest only in things owned and managed by Ambani and Adani. These guys somehow know which sector to be involved in.

desiviru said:
Applicable from FY'25-26 or AY'26-27. So no worries for profits booked till March 31, 2025. 2.5% extra not much and it is also for selected financial gains not everywhere. My heart broke for 0.02% STT on FnO. STCG @20% is done so as to discourage middle class from risking money in FnO. Middle class people are actually day dreamers and to get rich, they take risk without analysis. I have seen many middle class young age people commiting suicide around me. So nice step. It should have been 25% on STCG from Markets.

I want crypto to be completely banned in India. 95% people lose their money in markets. The generation that invested after Covid don't know the financial risk and turmoils happened in 1929 followed by 2008. I witnessed all my profits going down drain in 2008 and luckily I somehow exited with small gains but took a life lesson and never going to repeat mistake. Some are investing in stock markets as if they go one side only. Since 2021 comeback markets have not seen majot correction which is unhealthy thing happening.
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A few months ago, I read a paper indicating that banks outside the top three (SBI, HDFC, ICICI) are experiencing some pressure as people are opting to invest in the stock market rather than parking their funds in fixed deposits (FDs). This move might be aimed at discouraging stock market investments and encouraging citizens to consider FDs as a simpler investment option once again.
 
desiviru said:
Bro try to find answer yourself too. Sab mehnat dusra hi kar ke dede 🤣

Anyways, tax slab benefit in new regime comparatively now is 5000 (1 Lakh added to 5% slab between 3-7 Lakh and reduced from 10% slab), + 5000 (7-10 Lakh) + 5000 (9-12 as now 10 Lakh has 10% instead of 15%)
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Some corrections here
lets assume 12L income
tax according to current tax regime

3-6L: 5% = 15000
6-9L: 10% = 30000
9-12: 15%: = 45000
Total tax = 90000

New slabs
3-7L: 5% = 20000
7-10L: 10% = 30000
10-12: 15%: = 30000
Total tax = 80000

So the relief you calculated as 15000 is actually 10000 in tax slabs

7500 is max relief in SD hike effectively 10000+7500 = 17500 benefit at max

desiviru said:
tax slab benefit in new regime comparatively now is 5000 (1 Lakh added to 5% slab between 3-7 Lakh and reduced from 10% slab), + 5000 (7-10 Lakh) + 5000 (9-12 as now 10 Lakh has 10% instead of 15%) + 25000 SD (2750 tax benefit) = Total 17500
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Your numbers are not adding up 5000 + 5000 + 5000 + 2750 = 17500? How?

desiviru said:
Also 1.25 Lakh LTCG is tax exempt. Total 8.25 Lakh if compared with benefit provided with no extra tax burden
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Should be 7.25L. 1L was already covered
 
Riva said:
Today indexing has been removed from real estate. Most probably to test the waters and reaction. Tomorrow or in the near future it will be removed from stock as well..
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I need some clarity on this please:

So, if my father bought a house in 1980 for 1 lakh and today, we sell it for 1 crore...my father would be liable to pay tax on 99 lakhs?
 
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a_tease said:
A few months ago, I read a paper indicating that banks outside the top three (SBI, HDFC, ICICI) are experiencing some pressure as people are opting to invest in the stock market rather than parking their funds in fixed deposits (FDs). This move might be aimed at discouraging stock market investments and encouraging citizens to consider FDs as a simpler investment option once again.
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Even me and my friends thought the same.
think los simpson GIF
 
desiviru said:
Bro try to find answer yourself too. Sab mehnat dusra hi kar ke dede 🤣

Anyways, tax slab benefit in new regime comparatively now is 5000 (1 Lakh added to 5% slab between 3-7 Lakh and reduced from 10% slab), + 5000 (7-10 Lakh) + 5000 (9-12 as now 10 Lakh has 10% instead of 15%) + 25000 SD (2750 tax benefit) = Total 17500+4% cess put in pocket. For 2.5% LTCG increase, gain should be 17500*100/2.5 = 700000. So LTCG upto 7 Lakh already covered. Also 1.25 Lakh LTCG is tax exempt. Total 8.25 Lakh if compared with benefit provided with no extra tax burden. Actualy benefit is more than 10-20% of total tax liability here. Most people having income upto 12 Lakh and all benefitted. Middle class get something and other rich won't get affected with 2.5% LTCG more as those rich are into properties and gold assets where they gonna save 7.5% tax now.
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Samjh mein kuch nahi aaya but padhke accha laga 😂
 
a_tease said:
As a personal Investment funda I invest only in things owned and managed by Ambani and Adani. These guys somehow know which sector to be involved in.


A few months ago, I read a paper indicating that banks outside the top three (SBI, HDFC, ICICI) are experiencing some pressure as people are opting to invest in the stock market rather than parking their funds in fixed deposits (FDs). This move might be aimed at discouraging stock market investments and encouraging citizens to consider FDs as a simpler investment option once again.
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So this is kinda of true.. I also remember speaking to a branch manager who was saying something on these lines.
For banks, fds are good source of liquid funds.. they give out interested at a fixed % but have the flexibility to use the funds how they want. However in stock, that's not so easy.
 
Riva said:
You can look it up..

Indexation: Introduction, Meaning & Calculation | Angel One

The articles describe the meaning of indexation and how it can help in managing tax liabilities better. Follow Angel One for more details on the benefits of indexation.
www.angelone.in www.angelone.in
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Yes as I thought there was no ltcg indexation in equity apart from elss (upto 80c limit). Now same holds true for real estate too.

In tax rate modification proposed in the budget of 2018-19 LTCG on equity shares is subject to a capital gain tax of 10 percent without indexation for any investment of more than one year.
 
shashankrt said:
Not gonna happen. No sane person in 30 percent tax bracket will invest in FDs which get taxed accordingly. Even now stock market is preferred as might as well pay 12.5 percent than pay 42 percent on FDs as tax
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Right.. that's exactly why I said stock market will have no impact on it's trajectory. Investors will still continue to invest even if ltcg is 12.5%
 
So almost all media says indexing has been removed only for real estate. Equity/MF etc has been spared. Can anyone else confirm?
 
Riva said:
So almost all media says indexing has been removed only for real estate. Equity/MF etc has been spared. Can anyone else confirm?
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Was Indexation ever part of Equity mutual funds? Dont think so. For Debt mutual funds it was already removed in earlier budget.
 
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