Tax Terror is Back | WeekendInvesting Daily Bytes | 23 Jul 2024
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- Опубліковано 15 жов 2024
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Alok is the Founder of Weekend Investing. He has been in the Indian stock markets for almost three decades now and is passionate about building rule based - non discretionary momentum investing models to invest in the markets that can generate superior returns compared to benchmarks . His dream is to try to help others achieve Financial Independence early so that life can be lived to the full, like it has for him.
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Yes its tax terrorism 😢😢😢 and middle class harrasment
33.33 ℅ increase in STCG
25 ℅ increase in LTCG
That's right
Unnecessary increase in capital gains on ltcg and stcg on equity. Middle class will become poor class by 2029 with this taxation so that Congress will come to power in 2029 and give freebies for poor middle class as well.
And completely destroy our nation. Do you know under Khangress several PSU banks were on the verge of default?? And you surely would be aware about the scams and what they want to do to our nation!!!
Middle class need to be frugal in utilizing its resource and get out of this Tax terrorism
Yeah.. BJP is digging their own grave .. Everything is counted. After 5 years they will not be in power for sure, if this trend continues
@@Gpsuraj99 majority of politicians don't know what stock market is and what economy is.... They are just talkers...
Ya
If the Govt really cared about common man losing money in F&O, they would have asked exchanges to stop expiry every other day but the reality is that they have a great excuse to increase tax in the garb of people losing money. Regressive move.
@@deepakarora9055 Modi government want more tax.... Not to safe retailers.... They are very tricky.....
If they really care about the retailers then THEY SHOULD STOP DAILY EXPIRY..... but the current government doesn't care about it.....
Yup
@@neispej8284 they want people to put money on banks where they get 2-3% returns
The STT (Securities Transaction Tax) was introduced in 2004 as calculating Capital gains was difficult and people were evading Capital gains tax. So govt introduced STT tax saying if you have paid STT them you are exempt from paying Long term capital gains. The STT was increased several times from the initial 0.075% in 2004 for both buy and sell to 0.125 on the buy side and 0.1% on the sell side. Remember the initial promise while introducing the tax was to offset the investors from LTCG. This practice continued till 2018 when the govt reintroduced 10% capital gains but did not remove STT. In other words, not you pay two times the tax. Now they increased LTCG and STCG again. #TaxTerrorism
Right
Can people move to courts against this kind of double taxes. Arent we cheated for the good of these cheap politicians
@@drmrahulNo constitutional right has been violated. We are merely tasting what we cooked (voted for). Sadly public memory is so volatile that only some if it reflect in 2029 elections.
@@dineshmanoharan2423 and increased STT also...all 3
@@Nithink_Tank Haan India leage ko deke Rahul toh jhande gaad deta...
What is 16-17k savings in personal tax? It's a mere 1.5k a month, equals just a dinner outing cost.
Aunty will say...I dont eat out.
Ya. Many times not even a dinner
Someone who is earning 20 L doesn't care much about 17500 saving
@@lifeislarge Rich will not even buy toilet papers for that price.They have now shifted to golden tissues.
Why are we being charged 12.5% in long-term capital gains tax? I believe the government should allow its citizens to have the opportunity to improve their financial situations. We have already paid taxes on our hard-earned money, and it seems unfair to have to pay such a high tax rate when investing in long-term mutual funds. I kindly request that this tax rate be revised to a more reasonable level.
They screw the middle class and pay the poor hoping they get re-elected
because you have to support those who dont pay IT
Increase tax but not roads, healthcare, education, old age etc
Ok
Don't mix both ,even if they made a road in gold ..I'm not ready to pay 6 months of my salary in taxes .And I have my whole family in my one salary.
@aloksir , do you feel the weekend investing strategies with frequent rebalancing will have to be relooked at ?
Yes, monthly rebalance will increase STCG a lot and decrease the actual gains
I think impact is marginal due to that as losses are set off.
nope
Excellent summary. Thx. Unfortunate to see Tax terrorism continuing on middle class & higher middle class. I dont mind paying so much tax provided most non corporate Businesses are paying fair tax but they dont do so. They go Scot free & most of salaried class are feeding coffers of Govt while businesses enjoy tax evasion.,.
Tks
Yes, Sir, It is tax terrorism. The Govt grudgingly allowed some minor benefits to Middle Class. The Govt is raking lakhs and crores of rupees by way of GST and patting its own back. That itself is a daylight robbery. Yet, the Middle Class is not in its Agenda. This segment is quite a chunk of the voters who brought BJP again to power. Will they hold on to BJP is the question.
ya
Sir, what do you think about Goldbees? Is this tax duty fully priced in, in the price? I bought a lot of Goldbees today, at 60.5 avg price
Yes priced in by end of day
That's right
Momentum investors will suffer.. as we hold stock not more than a year in most of the cases ..😢😢😢😢
Marginal impact
@@AlokJain Can you please explain why it's a marginal impact? A 33% tax increase on the gains. Isn't this a non-trivial impact on the returns?
But does investing in Infra bonds or buying another real estate remain to get capital gain exemption?
yup
Sir, why do you think these recoveries are happening every time like clock work ?
Is it synthetic ?
Can't be . I yhink
@@AlokJain Never happened you mean ?
Sir I am a student, I am swing trading for last 6-7 months. I just do this for my college semester fees, I am earning good but my total income is way less than 3 lakh. So do I have have to file any ITR? If so, please guide me how.
pls consult a CA
Will this STCG 20% apply on trade between this fy Apr-july 22nd ?
no
20% STCG is not small.. with other charges it adds up. Also it will take sometime for markets to react. We can't say for now its without any impact. Also saw in some channels that equity tax on arbitrage is gone. so the fine print needs to be understood. There are also some MF like Parag DAA and SBI Multi asset fund that have 20% tax with indexation and now we don't know what happens. If those are gone then the FD guys who invested in it might rethink. Overall I feel it will take sometime for the reaction to surface in the market
Ok
STT + LTCG + STCG is kind of multiple layer of taxation.
Also do not forget the money average salary earner is earning also getting taxed in the beginning. So many times same money is being taxed and those who are paying it legally do not have any such significant incentive. .
ya
hello Alok Sir,
Any plans of releasing a mutual fund with Weekend investing product, after the new tax changes?
Don't have that kind of money
Sir to kya ab stock market leave kar dena chahiye . I am seriously asking this question
They are only taking 2.5% more. 87.5% is still yours unlike e.g., interest on FD.
It is just for now... ultimately in few years it will move to DTC which will be 30% on all capital gains.@@bhupeshjuneja9540
Na...Stocks r still better than all other available alternatives...
Nope
Dear its not 2.5 percent but increase of 25 percent @bhupeshjuneja9540
Opposition want to implement Inheritance tax & wealth distribution.
Ruling government want to increase taxes....😭 We have no good option
@@Mankisacchibaat which country?
Yup
They won't take your 🐄🐮 and donkey 🐴🫏
Dear Sir, it was P Chidambaram who abolished LTCG & tax on dividends. BJP has bought both of them back. Easy to forget history when blinded by political ideology. By the end of Modi 3.0 be ready to pay all Capital Gains at slab rates.
@@Amal-kp8qb gst will increase from 25 to 35 pc ,ltcg and stcg will increase to 25 to 35pc.
Rich doesn't have issues,they have money and loop holes to escape.
Target is middle class.
Aa usual influencers will divert attention on silly income tax benefits which hardly make any difference to any one.
I'm currently in Delhi, Four years ago I warned my Indian friends to never trust Indian government and not buy SGB scheme, they jokingly always called me anti Indian, today I'll message them 😂😂😂
😅😅😅😅😅😅😅
What's wrong with sgb? Did I miss anything?planning to buy some
For SGB there is no LTCG but tax is on interest earned not sure the interpretation
Despite this 9 pct ppl have minted in sgb...so don't make ridiculous conclusions
can indexation benefit (to counter inflation) is equivalent to 7.5% reduction in Ltcg for sale of fixed assets??I am in total disagreement :(
depends
Alok the audio is very low. If you can rectify will be gr8
today there was a audio issue..sorry
Tax on equity bought before today’s budget? If I sell as LTCG later?
Any tax liability applicable from 23 July will be as per new budget. This is why market didn't fall too much as anyways new tax would be applicable. If they said this will apply from tomorrow even then market would have seen a crash like never before as people would exit as much as they can to make use of old tax.. But too late now brother.. Good luck with equity class moving forward..
Thank you. What about grandfathering concept here In this case. Like what happened in 2018. 0% on profit on equity bought before 2018. Kindly correct me if I’m wrong
I think making all assets equal and which allows people to choose and diversify. Also higher STCG means people won't sell their stocks immediately. Also, 12.5% even on property will work out lesser than 20% on the indexed cost. For sure. Also property still allows capital gains bonds as well as investing in other property to make tax null. So now real estate will be in boom along with stock market. May be after 1 to 2 quarter, as people won't just sell immediately and buy property. Ideally they should have kept LTCG at 10% or possibly made lesser at say 7.5%. that way people would have no issues paying that tax.
12.5 is fair.
Alok Sir, I have a doubt! Govt Securities which are listed, are offering almost risk free return. These are long term. I can get back after either 3 or 5 or 7 or 10 years based on maturity year. However, the interest are paid six monthly. These are more of old people asset class unlike the privileged to own asset class like Gold, House, Stocks. Why Govt securities should be taxed at slab rate?! Any point I miss here?! Kindly give your thoughts please
At par with FD
@@AlokJain Sir exactly! I don’t understand the logic of slab rate taxation for FD returns and G sec interests. They should be treated with other asset class like Gold, House or Stocks. In fact, the money deployed in these asset classes are already tax paid at slab rate when I received the income for the first time.
Sir file PIL against decision
Why one proffesion is targeted with soo much tax
i got no time
@ Alok Sir,
1. Gold ETF /SGB have taken more than 2% beating today .There is a strong prediction that Govt. will increase GST on Gold which will increase the prices again.
Do you suggest that one should immediately buy more ETF to get the benefit of reduced prices & avarage out today's loss.
What happens if the import duty is further cut next year?
What's your fresh thinking on the gold as a investment?
2. In the last few days Nifty is holding on only because of few sectors like IT, FMCG etc.
What's your take on going for sectoral funds.
Some of the small cases like NNF 10 etc have taken severe beating. What's your plan to add few sectoral stocks like IT etc into small cases so that we don't have to start a fresh experimentation with sectoral MF.
there is no prediction possible.
ETF taxation has been made easy
Sir impact of Stcg on momentum investing . Is it still worthwhile.
Of course. Minimal annd marginal impact
You said it all. Tax Terriorsim. ..... thanks.
Sir please buy good quality Mic for sound Quality improvement 🙏
today was a technical issue
Can you touch upon more on the reduced import duty on gold and the impact it creates on existing SGBs, also your thesis of government wanting citizens to buy more.
will do in DB today
Since you were always in Favor of Gold as Hedging, and with these latest scenario, pl do make a detailed video about how Gold stands as Hedging in future....will increase in International market still pull Gold value in India Up or it will be at discounted price? Lot of uncertainty about gold & help to understand with your views.
Tom. DB
Doesn't make any sense in abolishing Indexation benefit from property sale😡
Yes
Ok
Sir. Should we move to low churn strategies 😊
Like monthly vs weekly
No need
It's time to Shift from Indian market to FOREX market and Crypto market...
I will quit India market.... after 2 months ❤❤❤
Ok
Sire, you tweeted that , forget getting new ATH anytime soon, you still have that view?
No
VERY GOOD TITLE
If government is really bothered about losses, it should completely ban F&O. But govt wants both many and also good name.
Ya
When will be rebalance in omniscience future of mobility.
Please tell
no idea
Okay
Assume I have 10 L as my capital and also assume I make 10% profit before taxes, so I pay stcg of 20K, then the STT takes off 2K and the other expenses comes to around 1500 (assume it could be different but marginally) so my expenses INCLUDING STT IS 23500 leaving me with a profit of 76500 which works out to be around 7.65%. Now if I put that money in a fd @ 7% I get 70K before tax, assume I'm in the 10% bracket I pay 7k tax so my profit is 63K vs 76.5K for investing in the market i.e. a gain of 13.5 K, here the other expenses like internet investment on computer and auditor fees for filing are higher for stock investments.. Hence in my view it's curtains at least for me and not worth it. If my returns fall then it is definitely at a loss. If there is any error that I've made please highlight this.
Govt wants money to flow to Bank FDS
Reduce speculation
If you r making only 10 pct then invest in index etf
@@AlokJain I made 12% yoy till covid for 20 years, post that I ignored the profit as I felt it was a one off and would not come yoy, also last yrs profits were good and so was this year but going forward I don't think I'll make more than 10%, hence to keep things simple I arrived at 10% as this wold give me buffer if I had 2 bad years, but from here it'll be very difficult for me to get 12%. If I continue I'll probably go with the etf's as suggested by you thanks.
We want Chidambaram back
All governments no matter which will come will introduce Taxes, Thats the beauty of Democracy :P
Akshay you should study history.
😂for what? Scam?
Pmla founder. Equally a crook like unclean Nirmala.
Ok
@ Alok sir can you confirm total duty on gold reduced from 15 to 6 or 15 to 11( 6 + 5 AIDC)
15 earlier. Now 6.
@@AlokJain
Thanks sir
superbly explained sir. I regret voting for NDA this time. Next time I will be careful
Ok
As a rule of thumb, I never vote for people who are patronising. This govt and earlier nda govts were quite patronising.
Colletcts tax like a European country. Facilities provided to Public similar to Pakistan
yup, kya hii kar sakte hain
The last observation that may be govt wants people to buy gold and reduce dependency on USD. This insight can be invaluable please delve more on this in next podcast.
Sure
Removal of indexation in my opinion will materially increase the tax liability as it used to give a multiplier factor of 1.5 to 3.5 to cost price for properties purchased 10-25 yrs back. As against that a 7.5% lower tax will not compensate materially as per my calculations. But i do agree that this is tax terror..
Not necessarily
Increase of stcg from 15% to 20% is only for certain securities. The list has not been clarified in the budget.
Ok you think they don't include equity😂😂😂
All
Are you living in fools paradise 😂😂😂
Bad budget. But excellent Daily Byte! Thank you Alok Jain for your deep insights.
Tks
Worse Budget Ever
There have been worse ones
शेर पाला है, महंगा पड़ेगा
@@whykokskutta nikla sala
There was no need to increase taxation on STCG and LTCG. 20% tax on STCG seriously now no pint in doing swing trading 😢
Ok
Badhayi ho alokh ji... Apake hi chuni huyi favourite govt hai...maze lelo....
Exactly 💯
idhar kuan udhar khayii...you have to chose the lesser devil
k
Govt stopped SGB from 2024 year onwards. Now redemption from 2016 bonds and govt dont want to shed more money in payment, so they reduced the price, correct point.
@AlokJain Ji, There is Sound Prblm in Recording process. Sound should be Clear, Crisp, Easy to Comprehend. You could have used good sound recording stuffs and taken care of the recording process audio quality. Sorry to say, Video is Lacking Sound Clarity and facing hardship to understand the words despite using Headphone of Best Quality (Sound quality is harsh and pinching the ears)
Sorry. Some technical issue today
100% confident now in Feb 2025 budget, LTCG will be at least 15% and STCG at least 25%.and not allowing losses in STCG against LTCG etc just makes it clear that the Govt has only one philosophy - risk is yours, losses are yours, profits are mine and I need tax at 30% across all types of income - if you are not happy, then invest in FDs at 4% post tax.
ok
Defence, agriculture they eventually reduced the allocation
Congratulations sir for 50000 subscribers
Thank you !!
Market will brush things aside for how long ? Till 30% LTCG ? Come on, smell the coffee!!
The markets could brush aside because of the unprecedented bubble we are in. India development itself is a joke. Just check the PE ratios. Growth for next 10 years is already priced in into the markets.
Ok
I am very fearful about the gradual increase in LTCG over the long term. This is not very good sign for Investors, Income Tax payers and overall middle class.
Kya kar sakte hain
As long as SIP continues FM is least bothered about Market annoyance
Exactly in short term she wants the market to correct...coz all the new 2-3 crore investors won't be sustaining there capital in a real fall
Mutual funds sahi hain...kya bolle unko aur.As a middle class man hum kuch sapna lekar stock market aur mf main paisa lagate hain sir.But this fm mam
everybody has made money. hence this
Liked your analogy of increase on STT with tax on cigarettes
Tks
Is there anything we can do about this? 😔
No
For sure it will impact momentum investors who typically churn on weekly or fortnightly basis.
Impact is marginal. overall impact is more important
Govt needs to realize the difference between Income and Capital Gains. Capital Gains are gains that an investor makes on an investment capital, which has already been taxed once out of the investor's income. Levying STT and STCG/LTCG thereafter is literally, in my view, double/triple taxation. You are right when you use the term "Tax Terrorism". Please do throw some light on whether Momentum Investing in stocks would now make sense or simply investing in an active Momentum Mutual Fund would be more judicious, considering these new tax implications, as Mutual Fund investor will not attract STCG while still be able to churn the holdings.
marginal impact only...
Well summarised , Alok :)
Tks
Rich and crorepathi Agriculturalists should be brought into the tax net, they enjoy all the benefits. More so those who are professionals, including Priests, cooks and other craftsman. Priests these days earn 10,000 + each day. You don't get a cook for less 2 / 3000 per day. An IT guy who toils each day in front of the computer for 12 hours a day and making 75000 K per month will have to pay almost 100 K per annum tax. Nirmala Sitharaman is like a calculator but do not have business acumen to deal with the complex structure. I wish Piyush Goyal is made the next FM to bring in sensible policies.
Yup
I agree with everything you said except the terrorism part - There is only one terrorism which is in the name of Jihad.
ok
Middle class is approx 400 M people. Can they raise our voice on the streets with a Delhi Challo and get our voice heard and not take any more of this lying down to Tax Terror. Any kind of terrorism needs to be dealt with.
nope they will never
time to vote for Raga
He will have "Wealth distribution" & "Inheritance Tax" ...bruh 😭 we will be fkd even more
Haha
Thanks fr good analysis, depressing for long term wealth creation and Genz to become rich in their life time
Ok
When a salaried employee pays 30% tax 12.5 % for LTCG is not bad and it is netted off that is You pay only on your profit. But for Short Term it is a huge surprise with 20% and if you add the surcharge then it should be somewhere 22.5% , now people shouldn't speculate rather play safe. Buy some good stock with dividend paying companies and sit tight with your shares for long term. For traders and speculators it is not a worthy exercise going forward.
Ok
All these long term and short term capital gains, STT such tax hikes are only going to affect the retail investors.
Now is the proof that market is not at all driven by retail investors.
Ok
Indexation removed and LT Tax reduced today..in a couple of years Tax will be back @ 20% with no indexation!!
possible
In sum and baically, they want to fund the amount committed to Bihar and Andhra from taxing Asset Classes!! The condition of markets are similar to automobiles. They penalise the auto sector whenever theres pollution (construction has 0% contribution 😂). Similarly, when markets go up, penalise them and squeeze the participants who risk their money, educate themselves, to make money and have a good life!!
Ya
Andhra Bihar expenditure is nothing compared to what govt. Has earned from the last year....
They want the fall of markets
Slowly moving towards DTC... All these small steps are moving towards this DTC...
Ya
For this finance minister restructuring equals increasing. Never seen any tax restructured downwards. No indexation. Stt and stcg both, tax on buyback, tax on dividend, seems financial investment is a sin
That is by design
Power of liquidity is supreme. If money flows in..no way market is going to get decent correction….
Yes
Indexation - Suppose Mr. X has purchased a property in 2005-06 for Rs. 25lacs and then sells it in FY 2024-25 for Rs. 1 crore, LTCG tax will be 448718(prior budget) and 937500(post budget). Prospective Property sellers do check this.
Some PPL will lose
Nirmala Sitharaman is the greatest gold digger in India's history.
looking at her performance as FM for 7 years se should not be even the persoal assistant of uganda's FM
Haha
10:11 ...Sir in any way it's bad stcg tax is increased by 25% and LTCG by 33.3%, and you still believe, it's okey . Very poor Economics sir. Effectively this is effecting more on the new retailers which eventually to be the vote bank of future.😢 Moreover Corporate houses who are getting more valuation of money on assets as promoters are taxed less . 😮😮
we live in a country where 5% will support 95%.
That idea if one does not like, one shd move out.
Govt want people to keep money in bank accounts and not do SIP.
What ever may be the arguments, bank FDs are charged at your IT slab. Definitely market instruments are still beneficial than the rest for people in the higher tax brackets.
Ya
People need to protest over tax terrorism .
nobody will
Top it all ... they have removed indexation on property sale ..
That is not bad
@@AlokJain depends how old the property is ... a property in Mumbai bought at 30K in 1970 is now worth 1 cr .. The financial planning of the old couple has gone for a toss.
Many would stop trading unless he is forced to sell or buy. On a periodic basis people should look at their portfolio and sell the securities with losses either ST OR LT and offset it by selling the ones with gains - net net zero tax. The stock market was a golden goose for the Government, stupidity, greed and ignorance overtook. There should definitely be incentives to be in this market and for risking your hard earned money. Modi Government did not expand the Tax Payer base and squandering away the wealth of 2 Crores genuine tax payers, Out of 145 Crores population only 2 Crores people are only paying real tax. Are the rest 143 Crores don't earn anything? Modi Government as well as the earlier Governments were very disappointing. More so with the current regime.
Sounds very tough to make money in equity market even after you are long term investor.
Ya
The government has been running a deficit budget every year. Public debt in India is about 3 trillion dollars, so taxes will keep on rising.
Ya
Tax Terror is the perfect term.
Do not know what will happen to the weekly rebalance strategies now. 20% STGC will be too much .
no. marginal impact if at all
Thank you! 👍
You're welcome!
Well covered
Tks
Tax payers should oppose the hike of LTCG and STCG.Some results will come out.
nothing will happen
Both STT and CG is going to stay here forever
yup
STOP BUYING ANYTHING FOR A YEAR PEOPLE... Gandhi sent British out like that... What will business do without buyers... They will push the government to change
Ok
Very good time to sell Long Term Real Estate Assets held before 2002. Indexation Benefits + LTCG @ 12.5%..
So investment will reignite in other asset çlasses
ok
Govt. Wants the market to fall to avoid capital wipeout ....they want to discourage to much equity...coz this bubble may pop
90% traders supported Modi for election, now what have they done?
90% voters dont have cap gain.
Let's WAIT now for SEBI
SEBI will again ask for some changes in KYC or MFs and again upset the life of investors for no reason.
Ya
Sarkar- Hum keh kar lengey......
Janta - AAp humesa keh kar hi nahin patak kar humari lete hoo...
Sarkar - Kya
Janta- Sarkar ...Kar aur humari Izzat dono.
:)
Till yesterday and since many days yours and most people's content was selectively around how govt will hammer F&O and a high confidence around how investing is safguarded and right solution. Come today and you see what is really hammered. Don't count your chickens until all eggs are hatched.
Counted