Here’s What Stock Market Investors Could Expect from Union Budget 2022

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Here’s What Stock Market Investors Could Expect from Union Budget 2022

By Malvika Gurung -- The upcoming Union Budget 2022, to be introduced by the Finance Minister Nirmala Sitharaman on February 1, could await the FM’s stance on the removal of the Long Term Capital Gains (LTCG) Tax or Security Transaction Tax (STT).

Stock market experts believe that the elimination of LTCG tax on selling equity shares, along with STT is making the transaction cost in India extremely high, dampening the market sentiment.

Stock market investors have to undergo dual taxation in the form of LTCG tax and STT. The profits made from transactions in the market are reflected in their income, which further meets another window of taxation. As a result, an investor earning from the stock market has to undergo three layers of taxation.

Market investors seek the removal of LTCG Tax in the upcoming Budget to make the environment more market-friendly, which would further boost investment through the exchanges.

Experts at Tax2Win expect Sitharaman to exempt LTCG on the sale of Indian-listed equity shares, as it has shattered investor confidence. Another market expert stated that the level of variance between LTCG and the annual income tax slab should be looked at.

An expert at Swastika Investmart (BO: SWAF ) noted that it should either at least be lowered, as investors are having to pay it in conjugation with LTCG tax.

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  • Rakesh Prasad @Rakesh Prasad
    Lets hope not , it may backfire.
    Like 0

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