LTCG hiked to 12.5%. Big blow to investors.

LTCG hiked to 12.5% (from 10%) and STCG hiked to 20% (from 15%). Exemption limit set to 1.25 lakh in a year.
I remember someone in this forum mentioning to make hay while the sun shines (10 % LTCG). Its over now.

 

[CyberPsych]

Always post a reply with details.

Consider 10 Lakhs profit.

For 10% lcgt:
First: 1L exempted
Second: 9L - 90000 = 8.1L (10% of 9L is 90k)
Total: 1L + 8.1L = 9.1L you get

For 12.5% lcgt:
First: 1.25L exempted
Second: 8.75L - 1,09,375 = 7,65,625 (12.5% of 8.75L is 1.09k)
Total: 1.25L + 7,65,625 = 8,90,625 you get

Difference (extra tax for govt.) = ₹19,375

<Copied from YouTube video comment>

 

[m4b]

#SimplifyingBudget
Hum kya chu hai

 

[Lakshya Mahani]

#SimplifyingBudget
Hum kya chu hai

Yeh karke taxation simplify kaise hua🤔 😢

 

[desiviru]

Consider 10 Lakhs profit.

For 10% lcgt:
First: 1L exempted
Second: 9L - 90000 = 8.1L (10% of 9L is 90k)
Total: 1L + 8.1L = 9.1L you get

For 12.5% lcgt:
First: 1.25L exempted
Second: 8.75L - 1,09,375 = 7,65,625 (12.5% of 8.75L is 1.09k)
Total: 1.25L + 7,65,625 = 8,90,625 you get

Difference (extra tax for govt.) = ₹19,375

<Copied from YouTube video comment>

You see a decade ago, LTCG was 0. At that time nobody was busy doing such calculations where till 10 lakh you were paying nothing to Govt and now you have to pay Rs.1 Lakh. So loss of 1 Lakh now. Tax is on profits. If you are making profits, you adhere to pay tax. Now there are tax slabs of 15%, 20%, 25%, 30% but then LTCG will remain unaffected at 12.5%. Those people paying 30% on their earning come crying that LTCG 12.5% and we salaried getting taxed at 30%, why this kolaveri D, will it be acceptable to LTCG makers. Understand one thing, for a better and quality life, people have to contribute. The average tax till 10 Lakh is still very low compared to any other nation. In PPP and per capita tax, we are still better off.

All these hoo haa will stop in few days. No one is stopping themselves not to earn 100 more because we now have to shell out Rs.2.5 extra.

Those people who say, Govt should do something for poor are the ones who cry the tax increase most. Arrey bhai sarkaar kya paisa hawa mein banayegi tumhe benefits dene ke liye? Apna desh aur tax system bana lete hai phir hum sab milke. Jinse ghar ka budget tak ni sambhalta aur samajh aata, woh desh ke budget mein kya aaye, uski baatein kartey firtey hai. Aam aadmi sirf apni sochta hai, sarkaar ko sabko saath leke sochna hai. People think it's is only Govt duty to provide everything. Where the hell is our contribution will come from if tax rates are kept down?

Ab TF se thode din ke liye sanyaas lena padega.

 

[m4b]

You see a decade ago, LTCG was 0. At that time nobody was busy doing such calculations where till 10 lakh you were paying nothing to Govt and now you have to pay Rs.1 Lakh. So loss of 1 Lakh now. Tax is on profits. If you are making profits, you adhere to pay tax. Now there are tax slabs of 15%, 20%, 25%, 30% but then LTCG will remain unaffected at 12.5%. Those people paying 30% on their earning come crying that LTCG 12.5% and we salaried getting taxed at 30%, why this kolaveri D, will it be acceptable to LTCG makers. Understand one thing, for a better and quality life, people have to contribute. The average tax till 10 Lakh is still very low compared to any other nation. In PPP and per capita tax, we are still better off.

All these hoo haa will stop in few days. No one is stopping themselves not to earn 100 more because we now have to shell out Rs.2.5 extra.

Those people who say, Govt should do something for poor are the ones who cry the tax increase most. Arrey bhai sarkaar kya paisa hawa mein banayegi tumhe benefits dene ke liye? Apna desh aur tax system bana lete hai phir hum sab milke. Jinse ghar ka budget tak ni sambhalta aur samajh aata, woh desh ke budget mein kya aaye, uski baatein kartey firtey hai. Aam aadmi sirf apni sochta hai, sarkaar ko sabko saath leke sochna hai. People think it's is only Govt duty to provide everything. Where the hell is our contribution will come from if tax rates are kept down?

Ab TF se thode din ke liye sanyaas lena padega.

Bro take some rest! You need to research a lot. It's not about only one end. The budget should benefit both ends. The salaried class suffer a lot.
80C limit remains unaffected
GGN, Pune, Blore and many more cities are considered as non-metro for HRA calculation (40% of salary)
Ever-increasing insurance premium rates
No labour law for white collar jobs
many more ...

 

[m4b]

All these hoo haa will stop in few days.

Coming to hoo haa, you are part of the tolerant group who would piggyback on the non-tolerant group who would raise their voices to get things done.

 

[am11]

This is for salary income right, LTCG is for investments? Am I wrong?

Yes, this is correct.

 

[am11]

Some Facts (sourced from various articles):
1. Just 2.24 crore Indians or 1.6% of the population paid tax, including income tax and corporate tax, in 2022-23, according to data shared by the government in 2023
2. In direct taxes, it is the individual income tax that has overtaken corporate taxes in 2022-2023. People, mostly from the middle class, are contributing more in taxes than corporates.
3. In the US, 43% of the population pays taxes against the 2% in India.
4. Salaried individuals get no refund on GST paid, but corporates get input tax credit
5. While individuals are taxed on income, corporates are taxed on profits after deducting expenses from income
6. Despite the contribution towards public infrastructure and services by the middle class, which is around 31% of India's population, it has to be reliant on private schools and hospitals. No social security or pension support is provided. Leave aside other taxes such as toll tax etc.
7. The highest 30% tax bracket for salaried individuals also kicks in at much lower incomes when compared to countries like Russia, China and the US.

Now make your own opinion.

 

[Ak Singh]

Its time to Buy GOLD.....GOLD......🥇

You can't even beat inflation from buying or investing in gold.

 

[msankadi]

Some Facts (sourced from various articles):
1. Just 2.24 crore Indians or 1.6% of the population paid tax, including income tax and corporate tax, in 2022-23, according to data shared by the government in 2023
2. In direct taxes, it is the individual income tax that has overtaken corporate taxes in 2022-2023. People, mostly from the middle class, are contributing more in taxes than corporates.
3. In the US, 43% of the population pays taxes against the 2% in India.
4. Salaried individuals get no refund on GST paid, but corporates get input tax credit
5. While individuals are taxed on income, corporates are taxed on profits after deducting expenses from income
6. Despite the contribution towards public infrastructure and services by the middle class, which is around 31% of India's population, it has to be reliant on private schools and hospitals. No social security or pension support is provided. Leave aside other taxes such as toll tax etc.
7. The highest 30% tax bracket for salaried individuals also kicks in at much lower incomes when compared to countries like Russia, China and the US.

Now make your own opinion.

I got even more disappointed after reading your points... I was already feeling exploited now even more... Sabko khana khilane ka and electricity dene ka and pata nahi kya kya free Mein karane ka theka Humein kyun mila hai... We are working 12 hours a day to feed other 99%
.. Why? Because baki sab layak nahi hain toh those who have decided to stay back in India unko full loot lo.. Make them work even harder... While lower income group nowadays have decided to not even work as they are getting as much as 15k in freebies... Free house food electricity.. Socialism or communism... You decide

 

[Wealth is my birth right!]

This is for salary income right, LTCG is for investments? Am I wrong?

When we file final IT returns we can claim these exemptions

 

[CyberPsych]

When we file final IT returns we can claim these exemptions

Can you tell me how?

 

[Credit raja]

You can't even beat inflation from buying or investing in gold.

WIth inflation GOLD rises..
GOLD is Hedge agains Stock and equity..
In uncertail political,war, natural desaster situations... gold is the safest investment..

Thats enough for me to take buy call now...

 

[Wealth is my birth right!]

Can you tell me how?

Its for whom they do only investment earnings
Whatever ltcg they get it can be exempted to 1.25l tax free if its long term profit
On top of it addl 75k for standard deduction
Thats i meant
We can show these things while filing itr2 form

 

[SonyTom]

Some Facts (sourced from various articles):
1. Just 2.24 crore Indians or 1.6% of the population paid tax, including income tax and corporate tax, in 2022-23, according to data shared by the government in 2023
2. In direct taxes, it is the individual income tax that has overtaken corporate taxes in 2022-2023. People, mostly from the middle class, are contributing more in taxes than corporates.
3. In the US, 43% of the population pays taxes against the 2% in India.
4. Salaried individuals get no refund on GST paid, but corporates get input tax credit
5. While individuals are taxed on income, corporates are taxed on profits after deducting expenses from income
6. Despite the contribution towards public infrastructure and services by the middle class, which is around 31% of India's population, it has to be reliant on private schools and hospitals. No social security or pension support is provided. Leave aside other taxes such as toll tax etc.
7. The highest 30% tax bracket for salaried individuals also kicks in at much lower incomes when compared to countries like Russia, China and the US.

Now make your own opinion.

That's why I read somewhere - We work to make the government rich.
30% of salary gone as direct tax
50% of Petrol price is tax
50% of Car price is tax
5-28% tax on most other things.
So we study hard and work hard only to give more than half our earnings to government.
Where does this money go?
We all know the answer

 

[HumorSimpson]

That's why I read somewhere - We work to make the government rich.
30% of salary gone as direct tax
50% of Petrol price is tax
50% of Car price is tax
5-28% tax on most other things.
So we study hard and work hard only to give more than half our earnings to government.
Where does this money go?
We all know the answer

And unemployable people get monthly stipends here.

 

[Riva]

According to an article in moneycontrol.

For someone who is entering in the workforce, if the starting salary is less than 1L/ MONTH, they will get 15K one time payout.
By, this, 95% will be in the bucket. There are ppl who do not get 1L/ month salary even after working for 4-5 years!!
Unless you are a MBA from a reputed college you won't get placed at such salary.
How did they fix min salary at 1L/month for this scheme?

 

[krishc]

You see a decade ago, LTCG was 0. At that time nobody was busy doing such calculations where till 10 lakh you were paying nothing to Govt and now you have to pay Rs.1 Lakh. So loss of 1 Lakh now. Tax is on profits. If you are making profits, you adhere to pay tax. Now there are tax slabs of 15%, 20%, 25%, 30% but then LTCG will remain unaffected at 12.5%. Those people paying 30% on their earning come crying that LTCG 12.5% and we salaried getting taxed at 30%, why this kolaveri D, will it be acceptable to LTCG makers. Understand one thing, for a better and quality life, people have to contribute. The average tax till 10 Lakh is still very low compared to any other nation. In PPP and per capita tax, we are still better off.

All these hoo haa will stop in few days. No one is stopping themselves not to earn 100 more because we now have to shell out Rs.2.5 extra.

Those people who say, Govt should do something for poor are the ones who cry the tax increase most. Arrey bhai sarkaar kya paisa hawa mein banayegi tumhe benefits dene ke liye? Apna desh aur tax system bana lete hai phir hum sab milke. Jinse ghar ka budget tak ni sambhalta aur samajh aata, woh desh ke budget mein kya aaye, uski baatein kartey firtey hai. Aam aadmi sirf apni sochta hai, sarkaar ko sabko saath leke sochna hai. People think it's is only Govt duty to provide everything. Where the hell is our contribution will come from if tax rates are kept down?

Ab TF se thode din ke liye sanyaas lena padega.

No one is here against paying taxes.
But the system has to be reasonable.
You cannot do arbitrary things to totally wring out the less than 2% you have !
Seeing that you're so happy with the existing structure - can you list out some benefits that honest income taxpayers get in this country?
Are there any social security net ? Any unemployment insurance ?
Even a must have thing health insurance attracts GST of 18% - is health insurance considered luxury in this country ?
What is the justification of not making income tax slabs inflation adjusted over time (lowest slabs haven't been changed in 20 years ) ?

 

[HumorSimpson]

Are there any social security net ? Any unemployment insurance ?
Even a must have thing health insurance attracts GST of 18% - is health insurance considered luxury in this country ?
What is the justification of not making income tax slabs inflation adjusted over time (lowest slabs haven't been changed in 20 years ) ?

Very much needed. When earning Govt. takes all but doesn't give any support when not earning.

 

[desiviru]

No one is here against paying taxes.
But the system has to be reasonable.
You cannot do arbitrary things to totally wring out the less than 2% you have !
Seeing that you're so happy with the existing structure - can you list out some benefits that honest income taxpayers get in this country?
Are there any social security net ? Any unemployment insurance ?
Even a must have thing health insurance attracts GST of 18% - is health insurance considered luxury in this country ?
What is the justification of not making income tax slabs inflation adjusted over time (lowest slabs haven't been changed in 20 years ) ?

Agree with whatever you said and other are saying who has taken a hit from tax increase.

GST on health isurance should not be there. On one side Govt don't help in any kind of healthcare package for people or we have no coverage. Have to pay ourselves and then these retards have the audacity to take 18% tax on it.

Agree with point that honest tax payers suffers the most because we are considered weak by Govt, IT department and they take us for ride whenever they want. I thrash the Govt wherever it is due.

Not only that even Senior Citizens are not spared by shameless people running offices. Atleast they should not be bothered with so many taxes in their final stage of life but Govt sucks money from them also who paid taxes most of their lives while working.

TDS on FDs is another blood sucking Idea implemeted by NDA where maturity value takes hit die to 10% deduction every quarter.

Govt give no education spend help in this country and then senior citizens also have no help or any benefit scheme. All they deserve is 0.50% extra in their tough times of life. Never understood as why is pension taxable when it is made from the corpus an employee let go whole work life. Why is pension part of salary?

A senior citizen should not be taxed on his own personal income after retirement. If someone uses say family member money to earn more or try to take benefit then tax that amount by having a way.

I agree with point that people here want to pay and honestly pay taxes but they never get anything good in return and we have the reason in front of us. Over population where rich are having 1 child and those who can't even have food on their plates for 3 times are reproducing like animals. So we will continue to pay the price for other common citizens who are illiterate enough not to stop. No matter how much good we do or Govt do, these blind people and factory of child production will never let us enjoy and most of taxpayers money will keep going down for their welfare. Govt will not stop them as they are cheap labour option. So Govt tell them to procude as much as they want so that in future they can be exploited.